Temporary Foreign Worker (TFW) Program: Targeted, time-limited measures to help rural employers

THE federal government says that workers hired through the Temporary Foreign Worker (TFW) Program represent approximately 1% of Canada’s workforce and help support key sectors such as agriculture, food processing, construction and health care.

In response to evolving labour market conditions, several measures were implemented between October 2023 and November 2024 to reduce reliance on the TFW Program and ensure Canadians continue to have first access to available jobs.

While these changes have reduced overall reliance on the program, some rural communities continue to face acute labour shortages due to low unemployment rates, and ongoing difficulties attracting, recruiting, and retaining workers. In these regions, employers are struggling to find the workers needed to keep essential businesses operating and local economies moving.

In recognition of these conditions, Patty Hajdu, federal Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, on Friday announced targeted, time-limited measures to help rural employers address these workforce challenges while maintaining strong safeguards to ensure Canadians remain first in line for available jobs.

At the request of provinces or territories, the Government of Canada will permit rural employers to retain their current number of low-wage temporary foreign workers and temporarily increase the allowable share of low-wage temporary foreign workers from 10% to 15% of their workforce in eligible rural regions.

These measures can be implemented within two weeks of a positive request from a province or territory and could begin as early as April 1, 2026. The measures will remain in place until March 31, 2027.

Sector-specific exemptions from the cap will remain in place. Employers in the health care, construction and food processing sectors will continue to be subject to a 20% cap on their low-wage temporary foreign workforce. Seasonal sectors such as fish and seafood processing and tourism will continue to benefit from the existing TFW Program cap exemption for seasonal positions.

The Government of Canada will continue to monitor labour market conditions and work closely with provinces and territories, industry stakeholders and labour organizations to protect the integrity of the program and ensure Canadians continue to have access to available jobs across the country.

“Strong rural economies depend on local employers being able to find the workers they need to keep businesses operating and communities thriving. Canadians must always be first in line for available jobs, but in some rural regions employers are facing persistent labour shortages. At the request of provinces and territories, these targeted, time-limited measures will help address urgent workforce gaps while continuing to prioritize Canadian workers and support the industries that sustain rural communities,” said Hajdu.

“As we continue to prioritize Canadian workers first, these vital new measures recognize those distinct challenges and will help rural employers keep their businesses running and their communities strong. Rural communities need an approach that respects their unique realities. In many parts of rural Canada, employers are dealing with tight labour markets, smaller local workforces, and fewer people able to move where the jobs are. This announcement is good news, addressing those concerns for rural economies across the country,” said Buckley Belanger, Secretary of State for Rural Development.

Quick Facts:

• The TFW Program is designed as an extraordinary temporary measure to be used in response to evolving labour market needs, when qualified Canadians and permanent residents are not able to fill job vacancies.
• TFW Program policies are reviewed and adjusted regularly to respond to evolving labour market conditions and realities. This includes a focused approach that targets strategic sectors and needs in specific regions.
• TFW Program tightening measures introduced between October 2023 and November 2024 included:
  • a refusal to process policy for low-wage positions in census metropolitan areas of 6% unemployment rate or higher;
  • a decrease of the cap on the percentage of low-wage foreign workers an employer can hire relative to their total workforce from 20% to 10%; and
  • a reduction in the maximum employment duration of work permits for low-wage workers to one year.
• Workers under the TFW Program account for approximately 1% of Canada’s overall workforce, and approximately 10% of all non-permanent residents in Canada.