CIMM - Temporary Foreign Workers - December 4, 2025

Key Messages

• Canada’s temporary work programs are designed to address short-term labour and skill shortages, where no Canadians are available, as well as broader economic, social and cultural benefits, while protecting both foreign and domestic workers.
• Unsustainable growth in the number of temporary workers arriving in Canada, concerns over youth unemployment, and the government’s mandate to reduce Canada's non-permanent resident population to less than 5% required action to better control volumes.
• In response, Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC) introduced measures to manage volumes and better align the Temporary Foreign Worker and International Mobility programs with economic and labour market objectives. This includes:
  • changes to the Low-wage stream of the Temporary Foreign Worker Program (TFWP); and,
  • restrictions on two International Mobility Program (IMP) cohorts, the spouses of workers and students, and Post-Graduation Work Permit (PGWP) holders.
• Compared to the same period in 2024 (January to September), 158,660 (48%) fewer new temporary workers arrived in Canada in 2025. This is a clear sign that the measures are working.

Key Facts and Figures

In Canada Work Permit Holders as of September 30, 2025

Source: IRCC, RDB, Temporary Residents, September 30, 2025 data

• Per the 2026–2028 Immigration Levels Plan, overall temporary worker arrival targets have been set at 230,000 (170,000 under the IMP and 60,000 under the TFWP) for 2026.
• There have been notable decreases as a result of measures to manage volumes:
  • Overall, as of September 30, 2025,158,660 (48%) fewer new workers arrived in Canada in 2025 when compared with the same time period in 2024 (January to September).
  • TFWP: Since September 2024, the TFWP saw a 50% reduction in applications received by ESDC, including a 70% reduction in low-wage applications;
  • IMP: As of September 2025, demand for new work permits through the IMP decreased by 51% compared to the same period in 2024 (January to September);
    • PGWP: There has been a 20% decrease in the number of new PGWP holders from between January and September 2025, compared to the same period in 2024.

If pressed on the increase in temporary workers stock:

• Even though fewer new temporary workers have arrived since January, the total number in Canada has gone up by about 2%, mostly because many are extending their work permits instead of leaving.
  • As of August 31, 2025, there were 1 489 645 work permit holders in Canada, compared to 1 460 115 at the end of 2024.
• The full impact of the measures will take time to materialize. The Department expects reductions to start accruing at a faster pace in 2026 and 2027. For example:
  • The projected number of PGWPs issued is anticipated to decrease as a result of fewer study permit holders, in addition to the 2024 PGWP eligibility reforms, which restricted eligibility requirements.
  • Other initiatives, such as changes to spousal work permits, are expected to yield results starting in 2026.
• The Department will continue to monitor these numbers to support a balanced approach to labour market responsiveness, worker protection, and economic growth.

ESDC-Introduced Measures

• ESDC has taken steps to reduce volumes under the TFWP to support the government’s aim to reduce non-permanent residents to less than 5% of Canada’s overall population by the end of 2027. In September 2024, ESDC made the following changes to the Low-wage stream of the program:
  • Cap on low-wage positions: 10% cap on the proportion of temporary foreign workers that can be hired;
  • Refusal to process based on unemployment rate: refusing to process Labour Market Impact Assessment (LMIA) applications in census metropolitan areas with an unemployment rate of 6% or more; and,
  • Reduced duration of LMIA: reducing the maximum employment duration from two years to one year.
• Exemptions to measures: The healthcare, construction, and food security/processing sectors are exempt from the 10% cap and refusal to process.
• Since October 28, 2024, attestations from professional accountants or lawyers to prove employers’ business legitimacy are no longer accepted, to ensure that only genuine and legitimate job offers are approved.
• Effective November 8, 2024, ESDC took the additional measure of increasing the wage threshold for the High-wage stream by 20%, thereby increasing the number of positions that are subject to the stricter rules of the Low-wage stream.

If pressed on job postings with employers seeking LMIAs:

• An LMIA request by an employer does not automatically translate into an approved LMIA and a subsequent work permit issued to a temporary foreign worker.
• The employer will need to demonstrate the genuineness of this job offer to ESDC and that filling this position with a temporary foreign worker will have a neutral or positive impact on the labour market.

If pressed on links between temporary foreign workers and youth unemployment:

• While there was a period where a strong increase in non-permanent residents put pressure on youth unemployment, it was not the cause of the increase—it was a contributing factor when the economy began to slow down due to increased uncertainty around tariffs.
• Many other factors, like the adoption of artificial intelligence, contribute to the youth unemployment rate and appear to be at play as the rate remains at levels historically associated with period of recessions. This situation is occurring in a context of slowing population growth and international student arrivals.
• A high proportion of temporary foreign workers does not necessarily correlate with a high youth unemployment rate.
  • For example, British Columbia has the highest percentage of non-permanent residents relative to its population (at 8.9% as of July 1, 2025), but one of the lowest youth (and overall) unemployment rates as of August 2025 (at 12.6% and 6.2% respectively).
• Furthermore, youth unemployment may also reflect broader labour market challenges unrelated to temporary residents. While youth unemployment has risen, the number of temporary residents in younger age groups has declined.
  • For example, fewer study permits and PGWPs have been issued, and the International Experience Canada program saw its global cap reduced by 10 000 arrivals in 2024.

IRCC-Introduced Measures

• IRCC introduced restrictions for two of the largest IMP cohorts, spouses of workers and students, and PGWP holders.
• Measures to reduce spouses of students and temporary workers introduced January 21, 2025:
  • Spouses of students: Access is limited to those enrolled in master’s programs of 16 months or more, doctoral programs, certain professional programs, and select eligible programs.
  • Spouses of temporary workers: Access is limited to spouses of temporary workers employed in management or professional occupations (e.g., C-suite executives, scientists), or in sectors or jobs linked to government priorities. Previously, both spouses and dependants of workers across all skill levels were eligible for permits.
• In 2024, spousal work permit holders accounted for 13.7% of permit holders. Recent changes are starting to show results, and are expected to continue demonstrating a decline in volumes in late 2025.
  
  • Between January and June 2024 and the same period in 2025, there was a 63% drop in new work permits issued to spouses of international students, and a 39% decline for spouses of low-skilled workers. Going forward, the Department expects to continue to see downward trends.
• PGWP measures introduced in 2024: IRCC has also updated the PGWP program to better align with economic objectives and support better labour market outcomes for students.
  • May 15, 2024: eliminating eligibility for international students who started studies in programs delivered by private colleges as part of curriculum licensing agreements; and,
  • November 1, 2024: implementing language proficiency requirements and limiting eligibility for students graduating from non-degree programs to fields of study linked to occupations in long-term shortage.
• Specific to PGWP reforms, by introducing minimum language requirements, targeting in-demand fields of study and focusing on degree programs, the PGWP is better positioned to create a pipeline of student graduates whose skills align with Canada’s long-term labour needs.
• There has been a 20% decrease in the number of new PGWP holders from 153,000 between January and September 2024, to 122,000 between January and September 2025.

Worker Protection and Compliance Under Temporary Foreign Worker Programs

• Temporary workers in Canada have the same workplace protections as Canadians and permanent residents under applicable federal, provincial, and territorial legislation.
• To help strengthen employer compliance and advance the rights of temporary workers under these programs, the government has a number of initiatives in place, including:
  • Migrant Workers Support Program: funds over 110 community organizations to provide in-community and upon-arrival services to help temporary workers learn about and exercise their rights;
  • Employer compliance and inspections: promote and impose safe and fair working conditions for employer-specific work permit holders; and,
  • Issuance of Open Work Permits for Vulnerable Workers for eligible employer-specific work permit holders experiencing, or at risk of experiencing, abuse from their employers, allowing the affected worker to quickly transition to new employment.

If pressed on worker protection concerns:

• IRCC and ESDC administer compliance regimes—for the IMP and TFWP respectively—to promote and impose safe and fair working conditions for employer-specific work permit holders via employer inspections. Consequences for employer non-compliance range from warning letters to Administrative Monetary Penalties (AMPs) of up to $1M each year, and bans from the program.
• In 2024–2025, ESDC conducted 1 435 employer compliance inspections, of which 10% of employers were found non-compliant. During the same period, penalties more than doubled from $2,067,750 to $4,882,500 and resulted in 36 employers being banned from the TFWP, a threefold increase from last year.
• For the same period, IRCC conducted 4 328 employer compliance inspections and approximately 1% of these inspected employers were found non-compliant. 52 AMPs and three combined AMPs/bans were issued, for a total of 55 penalties. The total monetary amount of AMPs issued under the IMP in fiscal year 2024–2025 was $534,000.
• Penalties for non-compliant employers are just as strict under the IMP as they are under the TFWP. The difference in inspections and outcomes is that employers under the TFWP often employ large groups of workers—especially in low-wage sectors like agriculture and caregiving. By contrast, IMP employers are generally geared towards higher level talent (and therefore higher language abilities and salaries) and less likely to be placed in vulnerable circumstances.
• Both departments have also taken concrete steps to strengthen our programs to better protect workers and to hold employers accountable:
  
  • Stricter regulations introduced in 2022 that require employers to provide temporary foreign workers with private health insurance and prohibit employers from charging or recovering recruitment fees
  • A tip line and online reporting tool that allows individuals to anonymously report allegations of wrongdoing, resulting in 59 inspections being launched on employers under the IMP in 2024–2025 from which 22% of inspected employers were found non-compliant; and,
  • a Migrant Worker Support Program that seeks to provide temporary foreign workers with a better understanding of their rights while in Canada.

Misuse of the Temporary Foreign Worker Program

• The TFWP is jointly administrated by ESDC and IRCC with the support of the Canada Boarder Services Agency (CBSA). Questions related to misuse or fraud under the TFWP should be directed to ESDC.

If pressed on LMIA misuse:

• LMIA misuse refers to the buying and selling of LMIA applications, which may involve unethical recruitment and exploitation of foreign nationals for personal and financial gain. LMIA misuse can be carried out by employers, third parties, and/or temporary foreign workers, including stakeholders overseas.
• ESDC has a number of tools already in place to mitigate risks linked to program misuse, including:
  • an enhanced LMIA assessment for employers and/or sectors identified as high-risk for LMIA fraud to ensure their business operations and employment needs are genuine;
  • tightening documentation requirements to prove an employer’s business legitimacy;
  • non-responsive employers receive higher AMPs when it is determined through an inspection that the business does not exist or if they appear to be engaging in LMIA misuse, from $15,000 to up to $45,000 with a five-year program ban, and applied to every position on the LMIA instead of one single penalty;
  • Suspension of positive LMIAs via ESDC’s Ministerial Instruction authority, in cases of suspected program misuse, and/or when there is serious risk to the worker’s health and safety. Work permit applications associated with suspended LMIAs may also be suspended until ESDC has either lifted the suspension or revoked the LMIA;
  • Suspending and/or revoking previously approved LMIA positions at an earlier stage in the inspection process, where there is reason to suspect program misuse. This prevents employers from hiring additional workers until the situation is resolved or until the inspection is completed.
• While LMIA misuse is primarily addressed by ESDC, IRCC also addresses this issue by:
  
  • training officers to detect misuse when assessing the genuineness of a job offer prior to issuing a work permit;
  • participating in domestic and international outreach with a focus on advancing ethical recruitment practices;
  • maintaining dedicated web pages on LMIA fraud on IRCC websites; and
  • implementing a new temporary measure that Express Entry candidates no longer receive additional points for having a job offer. This measure, instituted in spring 2025, will reduce fraud by removing the incentive to illegally buy or sell LMIAs to improve a candidate’s chances of being selected to come to Canada as a permanent resident.
• Instances of suspected criminal activity, including fraud, are referred to the appropriate authorities including the CBSA, the Royal Canadian Mounted Police, or local police force.