Carney Confirms Major Changes Ahead For Temporary Foreign Worker Program

Prime Minister Mark Carney announced on Sept. 10 that the government is preparing changes to the Temporary Foreign Worker Program (TFWP). He spoke to the Liberal caucus in Edmonton and said the program “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.” He confirmed work is already underway to move in that direction.

Details not revealed
Carney did not outline what exact changes are coming. He stressed, however, that the program needs sharper focus. His announcement has drawn attention because of ongoing debate around the TFWP.

How the program works
The Temporary Foreign Worker Program issues permits to foreign nationals who want to work in Canada. Before a worker applies, employers must complete a labour market impact assessment, known as an LMIA. Employment and Social Development Canada carries out this process. An LMIA must show that hiring a foreign worker will not reduce jobs for Canadians. It should either have no effect or create more opportunities for citizens and permanent residents.

Opposition pushes back
Conservative leader Pierre Poilievre recently criticized the program. He argued that it reduces chances for Canadian workers. His party has even called for the program to be scrapped. The debate has grown louder as unemployment remains a concern in several regions.

Steps already taken
Over the last 18 months, the government made several adjustments to the program:

• Target of 82,000 net new TFWP admissions set for 2025.
  
• A freeze on low-wage LMIA applications in regions with unemployment above 6%.
  
• Raised wage threshold for the high-wage stream to 20% above regional median pay.
  
• Lowered caps on the share of a company’s workforce hired through the program.
  
• Restricted spousal open work permits to spouses of higher-skilled workers with 16 months or more on their permits.
  

Numbers show decline
Government figures show a steep drop in permits this year. From January to June 2025, new work permits issued under the TFWP fell by half compared with last year. In that period, only 33,722 net new permits were granted.

Uncertain future
Carney’s remarks suggest the government is looking for more targeted use of foreign workers. For now, Canadians and employers alike will wait to see what specific changes unfold in the months ahead.