Canada to tighten Temporary Foreign Worker Program, targeting specific sectors

Canada is preparing to overhaul its Temporary Foreign Worker Program, with Prime Minister Mark Carney announcing that the system will be narrowed to specific regions and industries.

The move has sparked unease among skilled professionals and businesses that depend on international talent.

Carney told his party caucus that the program needs “a focused approach” to meet labor shortages while reducing pressure on housing, infrastructure, and public services.

He also set a target to lower the share of non-permanent residents from about 7% of the population to 5% by the end of 2027, a shift that could significantly cut the number of temporary workers in the country.

Although full policy details are still pending, experts say the changes are likely to tighten Labor Market Impact Assessment (LMIA) rules, increase paperwork, and restrict which roles and regions can access foreign labor.

Employers in technology, healthcare, and other critical industries fear that added barriers could slow recruitment, delay projects, and dampen growth.

Some business groups argue Canada continues to rely on foreign professionals to plug genuine skill shortages, while critics of the current system say it suppresses wages and places extra demand on local services.

The government now faces the challenge of striking a balance between these competing concerns.

Carney described the reforms as part of “responsible immigration management,” stressing that the program should be limited to sectors with proven needs and designed to avoid over-reliance on temporary staff.

Ottawa has said it will draft policy details in the fall after consultations with provinces, employers, and settlement agencies.

For many foreign workers, including those in healthcare and IT, the announcement has created uncertainty over visas, renewals, and long-term prospects.

Industry leaders and advocacy groups are urging the government to ensure smoother pathways to permanent residency for high-demand professionals while rolling out the new rules.