Further changes involve occupations employers can fill through Low-Wage Stream and raised cap on temporary foreign workers
Employers hiring through the Low-Wage Stream of the Temporary Foreign Worker (TFW) Program can now obtain Labour Market Impact Assessments (LMIAs) lasting up to two years, double the current one-year maximum, under changes announced by Employment and Social Development Canada (ESDC).
The changes, which took effect Nov. 6, apply to LMIA applications submitted on or after that date.
The federal government is also adding early childhood educators to the list of priority sectors exempt from the current pause on low-wage LMIA processing in high-unemployment regions.
LMIA applications
Under existing rules, LMIA applications in the Low-Wage Stream are not processed in census metropolitan areas (CMAs) with an unemployment rate of six per cent or higher, with exceptions for priority sectors that include health care, construction and food processing. Early childhood educators are being added to those exceptions to respond to ongoing labour needs across the country, the release said.
The announcement was made by Patty Hajdu, minister of jobs and families and minister responsible for the Federal Economic Development Agency for Northern Ontario.
"Canada's workforce is the foundation of a strong economy. While Canadians must always be first in line for available jobs, employers in key sectors continue to face labour shortages that can limit growth and affect communities across the country," she said.
Regional access to depend on provinces
Hajdu is also proposing a second set of changes to the Low-Wage Stream that are contingent on provinces and territories opting in. They would take effect March 1, 2027.
Under the proposal, access to the Low-Wage Stream would vary by the size and unemployment rate of a community:
- CMAs with unemployment of six per cent or higher: Applications would continue not to be processed, except in the identified priority sectors.
- Large CMAs (population over 250,000) with unemployment below 6 per cent: Employers would have targeted access for occupations outlined in the Canadian Occupational Projection System (COPS), plus any additional occupations identified by provinces and territories.
- Rural areas of large CMAs, and smaller CMAs (population of 100,000 to 250,000): Employers would also have targeted access for COPS occupations and any additional occupations identified by provinces and territories.
- Rural communities: Employers would continue to have full access to all occupations in the Low-Wage Stream.
In both of the targeted-access categories, provinces and territories could also remove occupations to better reflect regional labour market needs, according to the government.
Cap raised to 15 per cent
Provinces and territories would also be able to opt in to additional flexibility for eligible employers in communities they identify. At their request, Ottawa would allow employers to hire temporary foreign workers for up to 15 per cent of their workforce through the Low-Wage Stream, up from the current 10 per cent maximum. Priority sectors would continue to operate under their existing 20 per cent limit.
Hajdu will meet with her provincial and territorial counterparts in the coming weeks to discuss measures to help the program respond to labour shortages in key sectors in rural communities, Ottawa said.
"These suggested changes, in collaboration with provinces and territories will help ensure the Temporary Foreign Worker Program remains a targeted and responsive tool that supports workforce needs and helps communities and businesses continue to thrive," Hajdu said.
Budget funding for service delivery
The release ties the changes to measures in Budget 2026, which it says provides $151.5 million over five years to support and enhance service delivery for the program.
The budget also includes $82 million over four years for the Migrant Worker Support Program, which helps temporary foreign workers understand their rights and how to exercise them while living and working in Canada, according to the release.
ESDC noted that employers who do not meet TFW Program requirements face administrative monetary penalties of up to $1 million per year, as well as temporary or permanent bans from the program. The program's compliance regime verifies employer adherence through inspections, the department said.
Pathways to permanent residence
The government also pointed to a new time-limited measure announced in Budget 2026 that will offer provinces and territories additional spaces under the Provincial Nominee Program, along with the option to use existing federal economic immigration programs to retain established workers already in Canada.
"A well-managed immigration system must be predictable, sustainable and responsive to Canada's economic needs. We are taking back control of the system and working closely with provinces and territories to ensure immigration supports our workforce, helps employers address genuine labour shortages and contributes to building a stronger Canada," said Lena Metlege Diab, minister of immigration, refugees and citizenship, in the release.
According to ESDC, temporary foreign workers make up approximately one per cent of Canada's labour force, representing less than 10 per cent of all non-permanent residents in the country. The department also said the economy has added 214,000 jobs in private employment over the past year, while the unemployment rate has fallen to 6.5 per cent.
