Introduction
The Temporary Foreign Worker Program (TFWP) has long been a cornerstone of Canada’s strategy to fill labor shortages and support economic growth. However, as the country navigates evolving demographic, social, and economic challenges, 2025 marks a turning point in how foreign labor is managed. The Canadian government has introduced sweeping reforms to the TFWP, with particular focus on stricter LMIA (Labour Market Impact Assessment) rules and a re-evaluation of eligible job categories.
These reforms aim to protect Canadian workers, enhance wage fairness, and ensure that foreign labor supports—not replaces—the domestic workforce. But the reforms also bring new complexity, affecting employers, temporary foreign workers, and families.
This guide breaks down everything you need to know about the 2025 TFWP reform, its impacts, and what it means for the future of immigration and labor in Canada.
What Is the TFWP? A Quick Refresher
The Temporary Foreign Worker Program allows employers in Canada to hire foreign nationals to fill temporary labor and skill shortages when qualified Canadians or permanent residents are not available. Most employers need to obtain a positive LMIA from Employment and Social Development Canada (ESDC) before hiring a temporary foreign worker.
An LMIA proves that no Canadian citizen or permanent resident is available to do the job and that hiring a foreign worker will not negatively impact the labor market.
Why the Reform in 2025?
Canada’s labor market has shifted significantly in recent years due to:
- Post-pandemic recovery changes
- Labor automation and technology
- Increasing concerns about exploitation of foreign workers
- High unemployment rates in specific urban centers
- Calls to prioritize Canadian talent first
As a result, the government is tightening the eligibility rules and processes under TFWP to prioritize local labor, raise employment standards, and protect foreign workers from abuse.
Major Changes Under the 2025 TFWP Reform
1. Stricter LMIA Rules in High-Unemployment Regions
Starting January 10, 2025, employers in Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher will no longer be able to apply for LMIAs for low-wage occupations. Affected cities include:
- Toronto
- Montreal
- Vancouver
- Calgary
Impact: This is expected to push employers to hire locally and reduce dependency on foreign labor for low-paying jobs.
2. New Cap on Low-Wage Foreign Workers
Employers in most industries will now only be able to hire a maximum of 10% of their workforce through the Low-Wage Stream of the TFWP. Previously, this cap was 20%.
Exemptions apply to:
- Agriculture and Food Processing
- Construction
- Healthcare
Impact: Businesses will need to reevaluate workforce strategies and possibly increase wages and benefits to attract Canadian workers.
3. Shortened Work Permit Duration for Low-Wage Jobs
The maximum duration for a work permit under the low-wage stream has been reduced from two years to one year.
Impact: This ensures regular reviews of labor needs and discourages long-term reliance on low-wage foreign workers.
4. Increased Wage Threshold for High-Wage Occupations
Effective November 8, 2024, the wage threshold for high-wage LMIA applications has increased by 20% over the regional median wage.
| Province | Old Threshold | New Threshold |
|---|---|---|
| Ontario | $27/hr | $32.40/hr |
| Alberta | $28/hr | $33.60/hr |
| BC | $26/hr | $31.20/hr |
Impact: Employers must pay more to foreign workers in high-wage positions, ensuring these jobs are truly high-skilled and not replacing Canadian professionals.
5. Removal of Professional Attestations
As of October 28, 2024, employers can no longer rely on attestations from lawyers or accountants to prove business legitimacy. Instead, they must submit government-issued documents, such as:
- CRA Notice of Assessment
- Business incorporation documents
- Payroll summaries
Impact: Tougher scrutiny will reduce fraud and abuse within the TFWP.
6. Major Changes to Open Work Permits for Families
As of January 21, 2025, open work permits (OWPs) for spouses and dependents are being significantly restricted:
New Rules:
- Spouses of international students will only be eligible if enrolled in:
- Master’s (16 months+)
- PhD
- Select professional degrees (medicine, law, dentistry)
- Spouses of foreign workers will qualify only if the principal applicant works in:
- TEER 0 or 1 occupations
- Select TEER 2 or 3 roles in construction, healthcare, and education
- Dependent children of temporary foreign workers are no longer eligible for open work permits
Impact: This could deter families from relocating together and may reduce the overall attractiveness of Canada for certain workers.
Affected Industries
Likely to Face Challenges:
- Hospitality & Retail
- Food Services
- Cleaning and Maintenance
- Warehouse & Manufacturing
Still Supported:
- Farming & Agriculture
- Healthcare & Seniors Care
- Skilled Trades & Construction
- Select Tech & Engineering roles
What Employers Should Do Now
- Audit Your Workforce
Determine how many workers are under TFWP and how future hiring could be impacted by the 10% cap. - Reevaluate Compensation
Consider boosting salaries to meet the new wage thresholds or to attract Canadian workers. - Strengthen Recruitment for Locals
Post more jobs on Job Bank, work with provincial job boards, and create training opportunities. - Review LMIA Documentation
Be ready to present strong, government-issued proof of business legitimacy. - Plan for Legal Compliance
Engage with regulated Canadian immigration consultants or attorneys for accurate filing.
What Foreign Workers Should Know
- Be aware of new job restrictions depending on your TEER classification.
- Verify if your job offer is in a CMA with high unemployment, as you may not be eligible.
- Ask employers whether they can meet the new wage standards.
- If planning to bring family, ensure you qualify under the revised OWP rules.
Expert Opinions on the 2025 TFWP Reform
🎙️ Minister of Employment, Randy Boissonnault:
“These reforms reflect our commitment to ensuring that Canadian workers come first, while also treating foreign workers with dignity.”
👩💼 Immigration Consultant, Maria Gonzalez:
“This is a major shift. It will clean up the program but also make it harder for both employers and workers in the short term.”
👷♂️ TFWP Worker from India:
“Many of us bring our families. The changes to permits make that nearly impossible now. It’s worrying.”
Long-Term Vision for the TFWP
The 2025 reforms are part of a broader goal to rebalance Canada’s temporary and permanent immigration streams. As more TFWs seek permanent residency, the government aims to streamline this transition—particularly for high-demand occupations.
This shift also reflects a deeper effort to ensure that temporary work does not become permanent exploitation, and that foreign labor supplements—not replaces—Canadian talent.
Conclusion
The 2025 TFWP reforms mark a significant recalibration of Canada’s approach to temporary foreign labor. While the changes bring greater accountability and fairness, they also introduce challenges for employers and barriers for workers hoping to build a life in Canada.
The stricter LMIA rules, revised wage thresholds, and family work permit restrictions all point toward a more regulated and transparent program. But success will depend on how well stakeholders adapt—through better planning, stronger local recruitment, and investment in fair working conditions.
As Canada redefines its immigration framework for a post-pandemic economy, both employers and workers must stay informed, compliant, and forward-thinking to thrive under the new rules.
FAQs About the 2025 TFWP Reform
1. What is the new LMIA rule for high-unemployment areas in 2025?
As of January 10, 2025, employers in CMAs with unemployment rates over 6% cannot apply for LMIAs for low-wage jobs. This includes major cities like Toronto and Montreal.
2. How have work permit durations changed under the new rules?
For low-wage streams, the maximum duration of work permits has been reduced from two years to one year.
3. Can family members of TFWs still apply for open work permits in 2025?
Only spouses of workers in TEER 0 or 1 occupations (and a few select TEER 2/3 roles) are eligible. Dependent children are no longer eligible for OWPs.
4. What documents are now required to prove business legitimacy?
Employers must now submit government-issued documents like CRA assessments and incorporation papers instead of professional attestations.
5. Which industries are exempt from the 10% low-wage worker cap?
Agriculture, food processing, healthcare, and construction sectors have exemptions due to national labor shortages.