CIMM – Temporary Foreign Workers – October 21, 2025

Key Messages

• Canada’s temporary work programs are designed to address short-term labour and skill shortages, where no Canadians are available, 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, IRCC and 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:
  • placing restrictions on two major International Mobility Program cohorts, the spouses of workers and students, and Post-Graduation Work Permit holders; and,
  • changes to the Low-wage Stream of the Temporary Foreign Worker Program.
• Compared to the same period (January to August) last year, 146K fewer new temporary workers arrived in Canada from January to August 2025, a clear sign that the recalibration measures the Government has put in place are working.

Key Facts and Figures

• Per the 2025-2027 Immigration Levels Plan, overall temporary worker arrival targets has been set at 367,750 (285,750 under the IMP and 82,000 under the TFWP) for 2025.
• There have been notable decreases:
  • Since September 2024, TFWP saw a 50% reduction in applications received by the Program at ESDC, including a 70% reduction in low-wage applications; 
  • As of August 31, 2025, demand for new work permits through the International Mobility Program (IMP) has decreased by 29% compared to the same period (January to August) in 2024;
  • There has been a 16% decrease in PGWP issuance between January and August 2025 compared to January and August 2024, from approximately 129,000 to 108,000; and,
  • Overall, as of August 31, 2025,146K fewer new workers arrived in Canada in 2025 when compared with the same time period (January to August) in 2024.
• The projected number of PGWPs issued is anticipated to continue 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 late 2025.
• 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 roughly 1,489,645 work permit holders only in Canada, compared to 1,460,115 at the end of 2024.
• The full impact of the recalibrating measures will take time to materialize. The Department expects reductions to start accruing at a faster pace in late 2025 and to continue in 2026 and 2027.
• The Department will continue to monitor these numbers to support a balanced approach to labour market responsiveness, worker protection, and economic growth.

Addressing Unsustainable Growth under the TFWP

• ESDC has taken steps to reduce volumes under the TFWP to support the Government’s aim to reduce non-permanent residents (NPRs) 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:
  • a 10% cap on the proportion of temporary foreign workers that can be hired;
  • refusing to process Labour Market Impact Assessment (LMIA) applications in census metropolitan areas (CMAs) with an unemployment rate of 6% or more; and,
  • reducing the maximum employment duration from two years to one year.
• 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

• A 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

• Many factors contribute to the youth unemployment rate. 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 (as of July 1, 2025), but one of the lowest youth (and overall) unemployment rates as of August 2025.
• Furthermore, youth unemployment may also reflect broader labour market challenges unrelated to temporary residents. While youth unemployment has risen, the number of temporary resident in younger age groups has declined.
  • For example, fewer study permits and post-graduation work permits have been issued, and the International Experience Canada program saw its global cap reduced by 10,000 arrivals in 2024.

Addressing unsustainable growth under the IMP

• IRCC has taken steps to reduce the number of workers under the IMP, while also ensuring that Canada remains competitive in attracting top talent to benefit the economy.
• Specifically, IRCC has introduced restrictions for two of the largest IMP cohorts, spouses of workers and students, and PGWP holders:
  • Spouses of students: As of January 21, 2025, 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: As of January 21, 2025, 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 level were eligible for permits.

In 2024, spousal work permit holders accounted for 13.7% of permit holders under the IMP. Recent changes to spousal work permits are starting to show results, and 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. These decreases reflect the recent restrictions introduced for these streams, as well as related study permit limitations affecting spouses of students. Going forward, the Department expects to continue to see downward trends.
• IRCC has also updated the PGWP program to better align with economic objectives and support better labour market outcomes for students:
  • as of May 15, 2024, eliminating eligibility for international students who started studies in programs delivered by private colleges as part of curriculum licensing agreements; and,
  • as of 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.
• In 2024, PGWP work permit holders accounted for 27.1% of permit holders in the IMP. There has been a 16% decrease in PGWP issuance between January and August 2025 compared to January and August 2024, from approximately 129,000 to 108,000.

Labour market access of under-employed work permit holders

• IRCC is improving labour market access for open work permit holders, notably asylum claimants. This begins with providing timely access to open work permits, which enable claimants to work anywhere in Canada and for any employer. As of August 31, 2025, there are approximately 227,000 asylum claimants with open work permits. 
• In addition, IRCC has been supporting provinces and municipalities by facilitating employment connections between claimants and potential employers, including through job fairs and other employment events at IRCC-funded hotels and reception centres.
• Through these efforts, the Government aims to assist claimants in supporting themselves rather than seeking government assistance while they await determination of their claim and help employers fill critical labour market gaps before turning to hiring from abroad.

Worker protection and compliance under Temporary Foreign Worker Programs

• While in Canada, temporary workers 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:
  • funding over 110 community organizations across Canada to provide in-community and upon-arrival services to help temporary workers learn about and exercise their rights through the Migrant Workers Support Program;
  • the administration of employer compliance regimes to promote and enforce safe and fair working conditions for employer-specific work permit holders via employer inspections; and,
  • the issuance of Open Work Permit for Vulnerable Workers (OWP-V) for eligible employer-specific work permit holders who are experiencing, or are at risk of experiencing abuse, from their employers, allowing the affected worker to leave an abusive situation and find a new job.

If pressed on worker protection concerns:

• IRCC and ESDC administers compliance regimes – for IMP and TFWP respectively - to promote and enforce 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 $1 million each year, and/or bans from the Program.
• In 2024-25, 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 TFW Program, a threefold increase from last year.
• For the period, IRCC conducted 4,328 employer compliance inspections under the IMP and approximately 1% of these inspected employers were found non-compliant. 52 administrative monetary penalties (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 FY 2024-25 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 violations under the TFWP often involve large groups of workers—especially in low-wage sectors like agriculture and caregiving—where issues such as unpaid wages or poor working conditions are more common. By contrast, employers under the IMP tend to be larger, well-established companies offering higher-paying jobs and using legal support/representatives to hire workers, which leads to fewer violations.
• 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; and,
  • a Migrant Worker Support Program that seeks to provide temporary foreign workers with a better understanding of their rights while in Canada.