Ottawa, December 22, 2025 — Recent changes in Canada’s immigration policies are creating noticeable challenges for industries that rely on temporary foreign labor. The government has introduced tighter limits on the Temporary Foreign Worker Program (TFWP), prompting concerns from employers across sectors such as agriculture, hospitality, retail, and food processing.
These adjustments aim to prioritize domestic employment and address social issues such as housing availability and wage pressures. However, businesses are reporting labor shortages, operational delays, and increased recruitment costs, raising questions about how these policies will affect the broader economy.
Temporary foreign workers have long been essential for filling positions that are difficult to staff with local labor. They often take on roles that are seasonal, physically demanding, or require specialized skills. The TFWP, along with the International Mobility Program (IMP), allows employers to legally hire non-Canadian workers when qualified domestic candidates are unavailable.
Historically, these programs have supported economic stability in sectors like agriculture, where large seasonal labor needs coincide with planting and harvest periods, as well as in hospitality, healthcare, and technology industries.
Canada’s immigration policy is now moving toward reduced reliance on temporary foreign workers. The federal government has implemented admission caps for TFWP:
| Year | TFWP Cap | IMP Cap | Total Workers (TFWP + IMP) | Total Temporary Residents |
|---|---|---|---|---|
| 2025 | 82,000 | 285,750 | 367,750 | 673,650 |
| 2026 | 60,000 | 170,000 | 230,000 | 385,000 |
| 2027 | 50,000 | 170,000 | 220,000 | 370,000 |
| 2028 | 50,000 | 170,000 | 220,000 | 370,000 |
The reduction of TFWP admissions is part of a broader strategy to reduce the temporary resident share of the population to below five percent by 2027. Enforcement has also become stricter, with higher penalties for non-compliant employers and shorter durations for certain low-wage work permits.
Agriculture relies heavily on temporary workers for seasonal tasks. Labor shortages in this sector can result in unharvested crops, reduced yields, and financial losses for farms. Smaller rural communities, where local labor is insufficient, are particularly vulnerable.
Restaurants, hotels, and retail outlets have experienced difficulties maintaining staffing levels, especially in smaller towns. Businesses report that reduced foreign worker access has forced adjustments such as shortened operating hours, limited services, or even temporary closures.
While less affected by low-wage restrictions, technology and healthcare sectors face challenges filling roles that require specific skills. Delays in recruitment or inability to fill positions can hinder innovation, patient care, and service delivery.
Data from Immigration, Refugees and Citizenship Canada (IRCC) indicates a sharp decline in temporary foreign worker arrivals. In October 2025, only 3,215 new TFWs entered Canada, marking one of the lowest figures in two years.
Between January and September 2025, the country experienced approximately 308,880 fewer new student and worker arrivals than during the same period in 2024—a 53% decrease. Policy factors contributing to this decline include:
These changes reflect the government’s intention to prioritize domestic hiring while curbing overall temporary resident inflows.
Temporary foreign workers and international students can face vulnerabilities such as:
In some investigations, workers in food service or agriculture were found to receive pay below provincial minimums due to intermediaries or cash-based arrangements. Government enforcement has resulted in fines and required repayment, but systemic issues persist.
A common debate surrounding the TFWP is whether it affects job opportunities for young Canadians. Youth unemployment reached 14.7% in September 2025, one of the highest levels in more than a decade. Critics argue that TFWs compete with local youth for entry-level jobs.
However, analysis suggests that temporary foreign workers typically occupy positions that young Canadians may avoid, including physically demanding, seasonal, or low-wage roles. Structural factors such as skill mismatches and regional economic differences are also major contributors to youth unemployment.
Canada’s policymakers face a complex challenge:
Potential solutions include:
Effective implementation requires ongoing evaluation to balance economic needs with social and labor considerations.
The impact of TFWP reductions is uneven across the country.
| Region | Key Challenges |
|---|---|
| Quebec | Fast-food and service businesses struggle to fill roles outside Montreal and Laval; closures and reduced hours reported. |
| Northern British Columbia | Small population base limits local labor supply; businesses call for exemptions to maintain operations. |
| Ontario | Resorts and agricultural employers report difficulty hiring seasonal workers; some processing plants faced temporary shutdowns. |
| Rural Areas | Overall shortages lead to potential crop losses and economic strain on local communities. |
These disparities highlight the importance of regional flexibility in immigration policy.
Canada’s temporary foreign worker programs are undergoing significant adjustments, creating tangible challenges for businesses and workers alike. Reduced admission caps, stricter enforcement, and shorter permits are reshaping labor availability across sectors.
While the policy changes aim to support domestic employment and sustainability, businesses report operational difficulties, particularly in seasonal or low-wage roles. Worker protections and fair treatment remain critical concerns, as temporary employees may face vulnerabilities due to employer-specific permits and enforcement gaps.
Balancing labor market demands, economic growth, and domestic workforce priorities will require nuanced policies, targeted exemptions, and investment in training. As Canada navigates this transition, the TFWP’s evolution will continue to influence both businesses and communities nationwide.
