What's the Temporary Foreign Worker Program that is deepening jobs and housing squeeze in Canada

Time of India

23-05-2025

In a greenhouse in Ontario, Jorge Ramirez checks the irrigation lines, his fifth season as a temporary foreign worker in Canada. "I send money back to my family in Mexico. It helps a lot," he says. But back in Ottawa, political tensions are heating up over the very program that brought Jorge here.
Conservative MP
Jamil Jivani
recently called for the termination of the Temporary Foreign Worker Program, claiming it is failing Canadians. His remarks sparked a debate on what the TFWP is, how it functions, and whether its benefits still outweigh its social costs.
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Conservative MP Jamil Jivani calls for an end to the Temporary Foreign Worker Program
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What is the Temporary Foreign Worker Program?
The TFWP is a federal program that allows Canadian employers to hire foreign nationals temporarily to fill labor shortages. It is managed jointly by Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC).
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Employers must typically apply for a Labour Market Impact Assessment (LMIA), demonstrating that no Canadian worker is available for the role. Once approved, a foreign national can apply for a work permit and begin employment in Canada.
The TFWP includes provisions to ensure fair treatment. Employers must provide safe working conditions, pay for transportation and housing for some worker categories, and comply with Canadian labor laws.
Major working streams and sectors of the program
The program is segmented into various streams: High-Wage Workers, Low-Wage Workers, the Global Talent Stream, In-Home Caregivers, Foreign Agricultural Workers, and Foreign Academics. Agriculture and In-home caregiving make up a significant portion of this program, but each stream addresses different labor needs in the market.
The Global Talent Stream, for instance, facilitates fast-track hiring of highly skilled workers in tech and research sectors. Meanwhile, the Seasonal Agricultural Worker Program brings laborers from Mexico and the Caribbean for up to eight months a year.
Rise in Canada's unemployment rate
Jivani's criticism is rooted in economic concerns, including the 14% youth unemployment rate as of April 2025. Critics argue that the TFWP suppresses wages and discourages investment in training Canadian workers.
"Young Canadians are being left out," Jivani said. "Instead of investing in our people, we are relying on cheap labor from abroad."
Government response
Employment Minister Patty Hajdu responded by defending the TFWP, highlighting its role in supporting agriculture, hospitality, and healthcare sectors.
"We are scaling the program to reflect actual labor shortages, not to replace Canadian workers," Hajdu stated.
Prime Minister Mark Carney's government has pledged to reduce the number of temporary foreign workers and cap total temporary residents to 5% of the population by 2027. This move is part of a broader immigration reset aimed at managing infrastructure and public service demand.
Quebec has a different approach
Quebec maintains its own guidelines under the TFWP. For example, all LMIA applications must be submitted in French unless they concern in-home caregivers. Quebec also has exemptions for certain skilled workers already holding work permits and Quebec Selection Certificates (CSQs).
A pilot project in partnership with the federal government allows Quebec employers in specified NOC categories to bypass recruitment requirements until the end of 2024.
Business groups caution against abrupt changes that could disrupt sectors reliant on temporary foreign workers.
"We need balance," says an executive from the Canadian Federation of Independent Business. "Without foreign workers, many farms, restaurants, and hospitals simply cannot function."