Canada’s Temporary Foreign Worker Program Faces Permanent Shutdown

Conservative Leader Pierre Poilievre has announced plans to eliminate Canada’s Temporary Foreign Worker (TFW) Programme, arguing it reduces job opportunities for Canadians and drives down wages.

Poilievre’s proposal would end the issuance of new TFW permits immediately, with a gradual phase-out over five years in regions where unemployment is particularly low. He is calling for a replacement programme limited to the agricultural sector, focused only on roles that employers can prove are difficult to fill with domestic workers.

The announcement comes amid rising public concern about immigration and the scale of temporary residency. A recent Nanos poll found that 45 percent of Canadians support reducing immigration levels, with an additional 26 percent somewhat supportive. 

More than 60 percent also back the federal government’s plan to lower temporary resident numbers, from 673,650 in 2025 to 516,600 in 2026, followed by a small increase the following year. Originally intended to help employers fill short-term labour gaps, the TFW Programme now faces criticism for being used to avoid fair hiring practices and for suppressing wage growth. 

Employers must secure a Labour Market Impact Assessment (LMIA) to prove no suitable Canadian workers are available, but critics argue the system has been misused. Prime Minister Mark Carney responded by defending the programme’s role in meeting economic needs. 

Speaking at a Liberal cabinet retreat in Toronto, Carney said reform is necessary but warned against dismantling the system too quickly. He noted that access to temporary foreign labour remains a top concern for many businesses, second only to tariffs.

Immigration, Refugees and Citizenship Canada also disputed Poilievre’s remarks, stating that the TFW Programme is designed to respond to labour market needs and allows foreign hiring only when no qualified Canadians are available. Changes introduced in late 2024 have already begun to tighten the programme’s rules. 

These include a 10 percent cap on low-wage foreign hires per workplace, rising to 20 percent in high-demand sectors. In cities where unemployment exceeds 6 percent, applications may be denied. The maximum employment duration under the Low-Wage stream has been reduced from two years to one, and higher wage thresholds in the High-Wage stream have triggered more stringent oversight.