Canada’s Temporary Foreign Worker Program (TFWP) is seeing a sharp slowdown. According to the latest federal data, new TFWP arrivals fell to just 2,615 in November 2025, the lowest monthly figure in nearly two years. This marks a significant shift in Canada’s approach to temporary labour migration and signals tighter controls ahead for both employers and foreign workers.

Why Are TFWP Numbers Falling?

The decline is not accidental. It directly aligns with changes announced in Canada’s Immigration Levels Plan, where the federal government reduced the 2026 TFWP admissions target to 60,000, down from the earlier projected 82,000. That’s a 27% reduction, reflecting Ottawa’s broader goal of lowering overall temporary resident numbers.

A major driver behind this drop is the moratorium on low-wage Labour Market Impact Assessments (LMIAs). Since September 2024, the federal government has paused the processing of low-wage LMIA applications in regions with an unemployment rate of 6% or higher.

LMIA Moratorium: Regions Affected

To obtain a TFWP work permit, foreign workers must submit a positive or neutral LMIA, issued by Employment and Social Development Canada (ESDC). This document confirms that hiring a foreign national will not negatively impact Canadian workers.

As of January 8, 2026, the LMIA moratorium applies to 24 economic regions, including major labour markets such as:

  • Toronto

  • Calgary

  • Ottawa

While seven cities—including Vancouver, Halifax, and Winnipeg—were recently removed from the list, many high-demand regions remain restricted. The list is reviewed quarterly, meaning conditions can change, but uncertainty remains high for low-wage employers and workers.

TFWP vs International Mobility Program (IMP)

Although the International Mobility Program (IMP) issues more work permits overall, the TFWP remains Canada’s primary employer-driven work permit pathway. It allows employers to hire workers in any occupation and from any country, provided an LMIA is approved.

By contrast, the IMP is limited to specific categories such as:

  • International graduates

  • Intra-company transferees

  • Trade agreement professionals

With LMIA approvals shrinking, many employers are now re-evaluating whether TFWP hiring is still viable in 2026 and beyond.

Political Pressure and Future Changes

The TFWP has faced growing criticism in recent years. In 2025, the Conservative Party of Canada openly called for the program’s abolition, while Prime Minister Mark Carney confirmed that additional reforms are in development.

The government has stated its intention to move toward a “focused approach targeting strategic sectors and specific regions.” However, as of now, no detailed framework or timelines have been released, leaving employers and workers in a wait-and-watch position.

These reductions also support Canada’s broader objective of reducing temporary residents to under 5% of the total population by 2027.


What This Means for Foreign Workers

For foreign nationals relying solely on temporary work permits, the landscape is becoming more unpredictable. Fewer LMIA approvals, reduced TFWP targets, and regional restrictions increase the risk of job loss, permit refusal, or non-renewal.

This is why more workers are now shifting focus toward Permanent Residency (PR) pathways, which offer long-term security and stability in Canada.


How ICC Immigration Can Help You Secure Your Future in Canada

At ICC Immigration, we help individuals move beyond uncertainty and build a clear, legal pathway to Permanent Residency in Canada. Instead of depending on unstable temporary options or risky alternatives, our experienced team provides strategic immigration solutions tailored to your profile.

Our Core Services Include:

  • Permanent Residency Applications
    We assist with Express Entry, Provincial Nominee Programs (PNPs), and other PR pathways, ensuring your application is accurate, compliant, and well-documented.

  • Work Permits and Study Permits
    We help you explore temporary pathways that align with long-term PR goals, even as TFWP rules tighten.

  • Family Sponsorships
    If you have eligible family members in Canada, we guide you through family reunification programs to secure PR status.

  • Expert Legal Immigration Advice
    Canadian immigration rules change rapidly. Our team provides professional legal guidance to help you avoid refusals and maximize success.

Instead of relying on uncertainty, take control of your future with a stable immigration plan. Whether you are already in Canada or planning your move, ICC Immigration is ready to guide you every step of the way with clarity and confidence.