Time‑limited measures will allow eligible employers to increase share of low‑wage temporary foreign workers from 10% to 15%
The federal government is giving rural employers limited new flexibility to use the Temporary Foreign Worker (TFW) Program, in a move welcomed by business and closely watched by HR leaders outside major cities.
Employment and Social Development Canada (ESDC) announced targeted, time‑limited measures that will allow eligible rural employers to increase the share of low‑wage temporary foreign workers in their workforce from 10% to 15%, at the request of provinces and territories.
The changes could take effect as early as April 1, 2026, and will remain in place until March 31, 2027.
“Strong rural economies depend on local employers being able to find the workers they need to keep businesses operating and communities thriving,” federal Jobs and Families Minister Patty Hajdu said. “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.”
The measures come after a series of policy tightenings between October 2023 and November 2024 designed to reduce reliance on the TFW Program and ensure Canadians remain first in line for available jobs.
Those changes included a refusal‑to‑process policy for low‑wage positions in census metropolitan areas with unemployment at 6% or higher, a reduction of the low‑wage TFW cap from 20% to 10% of an employer’s workforce, and a cut in maximum employment duration for low‑wage work permits to one year.
‘Canadians first’ principle
Announcing the new rural measures in Gatineau, Que., federal Jobs and Families Minister Patty Hajdu said the government is responding to distinct labour pressures beyond metropolitan areas.
“Strong rural economies depend on local employers being able to find the workers they need to keep businesses operating and communities thriving,” Hajdu said. “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.”
ESDC reiterated that the TFW Program remains “an extraordinary temporary measure” to be used only when qualified Canadians and permanent residents are not available to fill vacancies, and that employers must show real efforts to recruit domestically and continue those efforts while their applications are under review.
Sector‑specific caps, exemptions
Sector‑specific exemptions to the existing cap will remain in place under the new framework.
Employers in health care, construction and food processing will continue to be subject to a 20% cap on their low‑wage temporary foreign workforce, while seasonal sectors such as fish and seafood processing and tourism will continue to benefit from an exemption from the TFW cap for seasonal positions.
ESDC noted that workers hired under the TFW Program account for about 1% of Canada’s total workforce but support key sectors such as agriculture, food processing, construction and health care. The department also said it will continue to work with provinces, territories, industry and labour to “protect the integrity of the program and ensure Canadians continue to have access to available jobs across the country.”
Sector‑specific exemptions to the existing cap will remain in place under the new framework.
Employers in health care, construction and food processing will continue to be subject to a 20% cap on their low‑wage temporary foreign workforce, while seasonal sectors such as fish and seafood processing and tourism will continue to benefit from an exemption from the TFW cap for seasonal positions.
ESDC noted that workers hired under the TFW Program account for about 1% of Canada’s total workforce but support key sectors such as agriculture, food processing, construction and health care. The department also said it will continue to work with provinces, territories, industry and labour to “protect the integrity of the program and ensure Canadians continue to have access to available jobs across the country.”
Recently, the federal government introduced a temporary immigration measure aimed at helping Quebec employers retain skilled temporary foreign workers who are already on a pathway to permanent residence.
Clarity on permit rules
The Canadian Federation of Independent Business (CFIB) endorsed the announcement on behalf of small employers.
“CFIB welcomes today’s announcement on temporary changes to help rural employers retain a higher percentage of foreign workers,” said Dan Kelly, CFIB president, in a statement. “Any measure that prevents businesses from losing experienced, trained workers is a positive one.”
Kelly argued that use of the TFW Program can help sustain Canadian jobs rather than displace them, citing CFIB survey data.
“While unemployment rates have ticked up in Canada, over half (52%) of small business owners using the program report their Temporary Foreign Workers help protect jobs for Canadians,” he said. “A restaurant struggling to find an experienced cook will not be able to protect jobs for young Canadians waiting tables.”
However, CFIB also raised concerns about the status of current permit holders, noting that 1.3 million temporary work permits are set to expire in 2026.
“CFIB is seeking additional clarity on whether these new temporary measures will provide them with a pathway to extend the stay of existing Temporary Foreign Workers already in Canada,” the statement said. It also urged “all provinces to request these new flexibilities for employers in their jurisdictions.”
Ottawa also recently extended temporary special immigration measures for certain Iranian nationals already working in the country. Immigration, Refugees and Citizenship Canada (IRCC) said the measures, first introduced in February 2023 in response to instability in Iran, will now run until March 31, 2027, but apply only to eligible Iranian work permit holders in Canada.
