Canada to Tighten Canadian Temporary Foreign Worker Policy

In a move that could reshape the landscape for skilled international professionals, Prime Minister Mark Carney has announced plans to revamp the Canadian Temporary Foreign Worker Policy, signaling a significant policy shift toward a more selective and region-focused approach.

Carney told members of his party caucus that the Temporary Foreign Worker Program requires “a focused approach” that better aligns with genuine labour market demands while reducing pressure on housing, infrastructure, and social services. The government’s broader goal, he said, is to reduce the share of non-permanent residents from the current 7% of the population to 5% by the end of 2027 — a move that would naturally shrink the pool of temporary workers if fully implemented.

Canada: What the Changes Mean for Skilled Professionals

While the government has not yet published the full details, early signals suggest that the coming reforms could tighten Labour Market Impact Assessment (LMIA) requirements, increase documentation burdens, and limit access to foreign labour for only certain sectors and regions.

Employers in critical industries — from technology and healthcare to advanced manufacturing — worry that tougher rules could slow hiring and stall projects dependent on specialized international talent. Industry groups have warned that abrupt restrictions could create labour shortages, delay innovation, and hurt economic momentum.

“Canada still has real skill gaps that can’t be filled overnight,” said one Toronto-based tech executive, noting that foreign hires often bring niche expertise that is hard to source locally. Conversely, critics of the current system argue that over-reliance on temporary workers can suppress wages and place heavy strain on housing and public services.

Government Rationale and Next Steps

Carney framed the policy shift as part of responsible, sustainable immigration management. The revised Canadian Temporary Foreign Worker Policy would concentrate on strategic sectors and regions where labour needs are clearly demonstrated, while discouraging over-reliance on temporary hires in areas already facing infrastructure or housing stress.

Officials confirmed that policy drafting will take place this autumn, with consultations planned involving provincial governments, employers, industry groups, and settlement agencies. The aim is to implement the changes gradually, giving businesses and foreign workers time to adapt.

For many foreign professionals — from healthcare workers to IT specialists — the announcement has sparked uncertainty about future visas, renewals, and long-term prospects. Advocacy groups are urging the federal government to pair tighter entry rules with clearer, faster pathways to permanent residency for workers in high-demand occupations.

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