New federal statistics show that only 2,615 work permits were issued under the Temporary Foreign Worker Program (TFWP) in November 2025—the smallest monthly intake since early 2024. The Economic Times broke the story on 21 January 2026, noting that arrivals have steadily declined since cabinet ministers pledged to "rebalance" the program amid concerns about wage suppression and housing shortages.
Introduced in 1973, the TFWP allows Canadian employers to fill shortages when no Canadians or permanent residents are available. In 2022–23, post-pandemic demand pushed approvals above 100,000 per year, sparking criticism that businesses were using temporary labour to avoid raising wages. Responding to a parliamentary committee, Ottawa imposed sector-specific caps and began phasing out COVID-era flexibilities such as 30-percent workforce thresholds in low-wage streams.
Economists warn that the sharp November drop could be an early indicator of stricter policy. Industries most exposed include agriculture, hospitality and food processing—sectors that rely on seasonal workers and face structural recruitment challenges in remote areas. Some employers report Labour Market Impact Assessment (LMIA) processing times stretching beyond 12 weeks, forcing them to scale back production or pay overtime to local staff.
![Temporary Foreign Worker Arrivals Plunge to Two-Year Low, Hinting at Tighter Labour Policies]()
For employers and foreign nationals who need practical, on-the-ground assistance amid these changes, VisaHQ offers a streamlined way to track requirements, prepare documentation and explore alternative paths like the Global Talent Stream. Their Canada platform (https://www.visahq.com/canada/) provides real-time updates and expert guidance, helping businesses and workers stay compliant and on schedule despite shifting regulations.
For multinational firms, the message is twofold: first, anticipate longer lead times for TFWP-based assignments; second, look at alternative pathways such as the Global Talent Stream (GTS) or intra-company transfers, which enjoy faster processing and LMIA exemptions. Companies should also invest in retention strategies for existing foreign workers, as permit extensions remain comparatively straightforward if filed early.
The government is expected to unveil a TFWP reform package in the 2026 federal budget. Stakeholders hope for clearer wage benchmarks, a streamlined LMIA portal and expanded transition options to permanent residence—measures they say are essential if Canada wants to remain competitive while protecting domestic labour standards.
Introduced in 1973, the TFWP allows Canadian employers to fill shortages when no Canadians or permanent residents are available. In 2022–23, post-pandemic demand pushed approvals above 100,000 per year, sparking criticism that businesses were using temporary labour to avoid raising wages. Responding to a parliamentary committee, Ottawa imposed sector-specific caps and began phasing out COVID-era flexibilities such as 30-percent workforce thresholds in low-wage streams.
Economists warn that the sharp November drop could be an early indicator of stricter policy. Industries most exposed include agriculture, hospitality and food processing—sectors that rely on seasonal workers and face structural recruitment challenges in remote areas. Some employers report Labour Market Impact Assessment (LMIA) processing times stretching beyond 12 weeks, forcing them to scale back production or pay overtime to local staff.
For employers and foreign nationals who need practical, on-the-ground assistance amid these changes, VisaHQ offers a streamlined way to track requirements, prepare documentation and explore alternative paths like the Global Talent Stream. Their Canada platform (https://www.visahq.com/canada/) provides real-time updates and expert guidance, helping businesses and workers stay compliant and on schedule despite shifting regulations.
For multinational firms, the message is twofold: first, anticipate longer lead times for TFWP-based assignments; second, look at alternative pathways such as the Global Talent Stream (GTS) or intra-company transfers, which enjoy faster processing and LMIA exemptions. Companies should also invest in retention strategies for existing foreign workers, as permit extensions remain comparatively straightforward if filed early.
The government is expected to unveil a TFWP reform package in the 2026 federal budget. Stakeholders hope for clearer wage benchmarks, a streamlined LMIA portal and expanded transition options to permanent residence—measures they say are essential if Canada wants to remain competitive while protecting domestic labour standards.
