Ottawa eases temporary foreign worker restrictions amid labour shortages

OTTAWA — The federal government is easing selected restrictions under Canada’s Temporary Foreign Worker Program, extending the maximum approved employment period for low-wage foreign workers and introducing additional exemptions to address labour shortages in essential sectors.

The changes, which took effect November 6, allow employers submitting new low-wage Labour Market Impact Assessment applications to request employment periods of up to two years, compared with the previous one-year maximum.

Ottawa is also exempting early childhood educators from restrictions preventing employers in metropolitan areas with unemployment rates of six per cent or higher from obtaining certain approvals to hire low-wage temporary foreign workers.

Similar exemptions already apply to priority sectors such as health care, construction and food processing.

Employment and Social Development Canada says the adjustments are intended to provide greater predictability for employers while responding to labour shortages in industries facing persistent recruitment difficulties.

The federal government is also proposing additional regionally targeted reforms, potentially allowing greater hiring flexibility in designated communities. Those changes are expected to take effect March 1, 2027, subject to provincial and territorial participation.

The announcement comes amid continuing debate over Canada’s reliance on temporary foreign labour, including concerns about worker protections, housing pressures, unemployment and the impact of temporary migration on the domestic labour market.

While business groups have called for greater flexibility to fill vacant positions, labour advocates have emphasized the importance of stronger protections against exploitation and ensuring that foreign recruitment does not undermine wages and working conditions.

Ottawa says the latest changes are designed to balance labour-market requirements with existing restrictions on the program.