Government of Canada announces targeted reforms to the Temporary Foreign Worker Program to respond to labour market needs

GATINEAU, QC, Nov. 6, 2026 /CNW/ -- Building Canada Strong means investing in people, communities and a resilient economy. Communities across Canada rely on access to the workers they need to support local businesses, deliver essential services and drive economic growth.

The Temporary Foreign Worker (TFW) Program is intended to address labour shortages in critical sectors where qualified Canadian workers are not available. It also helps ensure that communities and industries facing genuine workforce challenges can continue to grow, contribute to local economies and remain competitive.

Today, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario highlighted initiatives to strengthen the TFW Program.

Restoring efficiency and predictability for businesses

Effective November 6, 2026, changes to the Low-wage Stream of the Program include:

• Labour Market Impact Assessment (LMIA) applications submitted on or after this date will have a maximum duration of up to two years, an increase from the current one-year duration;
• Currently, LMIA applications are not processed in Census Metropolitan Areas (CMAs) with an unemployment rate of 6% or higher, with exceptions for priority sectors that include healthcare, construction, and food processing. On November 6, 2026, early childhood educators will be added to the list of exceptions to further respond to ongoing labour needs across the country

Additionally, Budget 2026 provides $151.5 million over five years to support and enhance service delivery. 

Ensuring the TFW Program is responsive to regional labour market needs 

The Minister is also proposing several changes that are contingent on provinces and territories opt-in and will be implemented on March 1, 2027. Changes are as follows for Low-Wage-Stream LMIA applications from employers:

• In CMAs with an unemployment rate of 6% or higher, applications will not be processed, except for the identified priority sectors, as is the current process.
• In large CMAs (population of over 250,000) with an unemployment rate of less than 6%, employers will have targeted access for occupations outlined in the Canadian Occupational Projection System (COPS) and for any additional occupations identified by provinces and territories. Provinces and territories may also remove occupations to better reflect regional and economic labour market needs.
• In rural areas of large CMAs and smaller CMAs (population of 100,000–250,000), employers will have targeted access for occupations outlined in the COPS and for any additional occupations identified by provinces and territories. Provinces and territories may also remove occupations to better reflect regional and economic labour market needs.
• In rural communities, employers will continue to have full access to all occupations in the Low-Wage Stream of the Program.

In addition, provinces and territories will be able to opt-in to additional flexibility for eligible employers in communities they identify. At their request, the Government of Canada will permit employers to hire temporary foreign workers for up to 15% of their workforce through the Low-Wage Stream up from the current 10% maximum, while priority sectors will continue to operate under the existing 20% limit.

Minister Hajdu is committed to working with provinces and territories to better align the Program with regional labour market needs. In the coming weeks, she will meet with her provincial and territorial counterparts to discuss measures that would help the Program better respond to labour shortages in key sectors in rural communities, while ensuring Canadians remain first in line for available jobs. These discussions will also help identify where adjustments may be needed to better respond to local workforce specificities and needs.

These changes will be most effective when implemented in partnership with provinces and territories to address regional labour market needs, restore predictability for businesses, and support pathways to permanent residence for workers who are already in Canada and are essential to our economy.

The TFW Program remains an important tool to help address labour shortages when qualified Canadians are not available to fill job vacancies. While the Program supports employers in meeting immediate workforce needs, Canada has separate immigration pathways to permanent residence which we use to retain skilled talent and support our competitiveness.

Canada's ambitious growth agenda needs targeted, sustainable immigration to help complement the skills of Canadian workers. At the same time, our immigration system must be responsive to regional and sectoral needs while keeping overall immigration at sustainable levels.

In this regard, Budget 2026 provides provinces and territories with additional tools to address their workforce needs while creating clearer pathways to permanent residence for workers. Through a new time-limited measure, provinces and territories will be offered additional spaces under the Provincial Nominee Program and the option to leverage existing federal economic immigration programs to retain established workers already in Canada. This will provide provinces and territories with more opportunities to address their specific needs while better distributing the benefits of economic immigration.

Protecting workers' rights

Budget 2026 also announced $82 million in funding 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.

These responsive efforts will ensure temporary foreign workers continue to be supported. 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.

Quotes

"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. 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."
– The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

"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."
 – The Honourable Lena Metlege Diab, Minister of Immigration, Refugees and Citizenship  

Quick facts 

• The TFW Program is small in scale, with temporary foreign workers making up approximately 1% of the labour force in Canada, which represents less than 10% of all non-permanent residents in Canada.  
• More Canadians are benefitting from labour market strength. Over the past year, Canada's economy has added 214,000 jobs in private employment, while the unemployment rate has fallen to 6.5%, near its lowest level in two years.
• The TFW Program's employer compliance regime aims to verify employers' adherence to program requirements and conditions through inspections. Consequences for employers who do not respect TFW Program requirements include administrative monetary penalties of up to $1 million per year, as well as being temporarily or permanently banned from the Program.

Associated links

• Budget 2026 
• Canada's Immigration Levels
• Government of Canada taking action to support rural employers under the Temporary Foreign Worker Program 
• Provincial Nominee Program 

SOURCE Employment and Social Development Canada

Contacts: For media enquiries, please contact: Jennifer Kozelj, Deputy Director of Communications and Press Secretary, Office of the Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, [e-mail]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [e-mail]