🇨🇦Temporary Foreign Worker Applications Drop by Half — But Why?

🧾Canada’s Stricter TFW Rules Cut Applications in Half

Since the federal government tightened the requirements for hiring Temporary Foreign Workers (TFWs) last year, the number of applications has dropped sharply — nearly 50% overall, and about 70% in the low-wage sector, according to Employment and Social Development Canada (ESDC).

Under the new regulations introduced in September 2024, employers in regions with an unemployment rate above 6% are generally not allowed to apply for TFWs. However, exceptions remain for essential industries such as agriculture, construction, and healthcare, as well as short-term employment under 120 days.

Employers are also limited to hiring low-wage TFWs for up to 10% of their total workforce — though sectors like healthcare, construction, and food manufacturing can go up to 20%.

💼 Stricter Penalties Drive Down Applications

Government officials believe the combination of tighter hiring rules and stronger penalties for non-compliance has been the main cause of the sharp decline in applications.

During the 2024–2025 fiscal year, the government imposed $4.9 million in fines on employers who violated TFW program regulations — more than double the previous year’s $2 million, marking the highest total since the program began.

One of the most notable cases involved Bolero Shellfish Processing Inc. in New Brunswick, which was fined $1 million and banned from the program for 10 years due to violations including unpaid wages, unsafe working conditions, and failure to implement anti-abuse measures.

🧾 Of the 260 recent violation cases published, 44% were related to employers failing to submit required documents to federal inspectors.

⚖️ Political Pressure Mounts

At the same time, rising youth unemployment has increased political pressure surrounding the TFW program. The government argues that TFWs make up only about 1% of Canada’s total labor force, but the Conservative Party has called for the abolition of the program altogether.

Last month, Conservative leader Pierre Poilievre criticized the TFW system as a “wage suppression and opportunity denial program,” urging it be replaced with a sector-specific program limited to agriculture.

🌎 As the debate continues, the future of Canada’s Temporary Foreign Worker Program remains uncertain — balancing labor market needs, worker protection, and domestic employment opportunities will be key challenges ahead. Book a consultation now!

🇨🇦Temporary Foreign Worker Applications Drop by Half — But Why?