Canada plans to give rural employers more room to hire temporary foreign workers. The federal government announced new steps on March 13 to help small communities deal with ongoing labour shortages.

Employment and Social Development Canada introduced temporary measures under the Temporary Foreign Worker Program. These changes will help businesses in rural areas find workers when local hiring becomes difficult.

The program already helps employers hire workers from other countries when they cannot find enough people in Canada to fill open jobs.

Higher limit for low-wage foreign workers

The new measures will take effect from April 1, 2026, until March 31, 2027.

During this period, rural employers will gain two important options. They can keep their current number of low-wage temporary foreign workers. They can also increase hiring through this stream to 15 per cent of their workforce, compared with the earlier limit of 10 per cent.

Only rural employers in provinces and territories that decide to join the program will benefit from these changes. Officials have not yet shared which regions will take part.

Change follows earlier restrictions

The government introduced the 10-per-cent limit in August 2024. Officials wanted to ensure that employers did not depend too heavily on foreign workers.

Now, the government has decided to relax that limit for rural communities. Many smaller towns and remote regions continue to struggle with labour shortages. Businesses often face challenges finding workers because fewer people live in those areas.

Officials believe the temporary change will give local employers the flexibility they need while still protecting opportunities for Canadian workers.

Focus on local labour needs

The new policy forms part of a broader effort to match immigration programs with regional workforce demands. The federal government continues to work with provinces and territories to support communities where job vacancies remain difficult to fill.

Rural industries such as agriculture, food processing, tourism, and manufacturing often rely on temporary foreign workers during busy periods.

The updated rule may help businesses maintain operations, especially in areas where population growth remains slow.

Some restrictions remain in place

Despite the new flexibility, several rules will still apply.

Canada currently blocks the processing of low-wage temporary foreign worker permits in regions where unemployment rises above six per cent. Authorities review and update this list every three months.

Employers must also follow strict procedures before hiring foreign workers.

How the program works

The Temporary Foreign Worker Program offers a pathway for newcomers to gain Canadian work experience while filling labour gaps.

Employers who want to hire a foreign worker must apply for a Labour Market Impact Assessment (LMIA). This assessment helps determine whether hiring a foreign worker will help, harm, or have no effect on Canada’s labour market.

The program includes two main streams: high-wage and low-wage positions.

A job falls into the low-wage category if the hourly pay sits below the wage level set by each province or territory. For example, the threshold stands at $36 per hour in Ontario, $36.60 in British Columbia, and $34.62 in Quebec.

Employers who hire through the low-wage stream must meet additional rules. These requirements often include providing proper housing arrangements and covering transportation costs for workers arriving from abroad.

Officials say these protections help ensure fair treatment and safe working conditions.

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