Canada’s temporary foreign worker program has grown at an unprecedented rate. The numbers jumped from 356,000 workers in 2011 to 845,000 by 2021. This growth shows no signs of slowing down. Canadian employers got approvals to hire nearly 240,000 temporary foreign workers in 2023. These numbers are more than double the 108,988 approvals from 2018 and almost triple those from 2016.

Our Vancouver-based immigration law firm has seen how these changes have altered Canada’s labor landscape. The federal government made substantial changes to its foreign worker policies in 2022. Businesses can now hire twice as many low-wage workers through the program – up from 10% to 20%. Some sectors can even hire up to 30%. These changes have sparked important debates about immigration laws and their economic effects. Many industries have seen remarkable growth. Approval rates for nurse aides surged by 15,613% between 2018 and 2023. Food counter attendants saw a 4,802% increase during the same period. Current employment trends suggest that half of Canada’s estimated 3 million non-permanent residents could join the workforce. These changes are reshaping our labor market and raising crucial legal questions about the program’s future.

Canada reports record number of temporary foreign workers in 2025

Canada’s temporary foreign worker scene has hit record levels in 2025. This marks a turning point in the country’s strategy to meet labor market demands. The latest data from Immigration, Refugees and Citizenship Canada (IRCC) shows that temporary foreign worker numbers keep climbing rapidly, building on the remarkable growth we’ve seen in the last decade.

TFW population surpasses previous highs

Early 2025 numbers show temporary foreign worker population in Canada breaking all previous records. This continues the remarkable growth pattern that started in the previous decade. Canada hosted about 3 million non-permanent residents in the third quarter of 2024. Based on 2021 trends, experts estimate that half these people earned income in the Canadian labor market. These numbers show an extraordinary expansion of Canada’s temporary workforce compared to past figures. The government announced plans in March 2024 to reduce temporary residents to 5% of the total population within three years. The 2025-2027 Immigration Levels Plan set the 2025 Temporary Foreign Worker Program (TFWP) target at 82,000 entries, not counting seasonal agricultural workers. All the same, authorities had already issued 162,100 new work permits under the TFWP from January to October 2024. This included 33,775 under the Seasonal Agricultural Worker Program.

Comparison with 2011–2021 trends

Today’s record numbers build on ten years of steady growth in Canada’s dependence on temporary foreign workers. The total number of temporary foreign workers jumped from 356,000 to 845,000 between 2011 and 2021. The temporary foreign worker population’s makeup went through major changes during this time. Workers arriving under the TFWP dropped from 35% in 2011 to just 15% in 2021. Three in five temporary foreign workers (60%) entered Canada through study-related programs in 2021. This includes current study permit holders, Post-graduation Work Permit program participants, and study permit holders’ spouses. It’s a big deal as it means that the number rose from roughly one in four (24%) in 2011.

Temporary foreign workers’ effect on the labor market has grown considerably. These workers made up just 1.9% of all paid workers in Canada in 2011. This number more than doubled to 4.1% by 2021. Some sectors show even higher concentrations. To name just one example, foreign workers, mostly from the TFWP, represented 18% of all paid workers in agriculture, forestry, fishing, and hunting by 2021. The accommodation and food services sector also saw about 10% of its workforce coming from temporary foreign workers.

Sources: Statistics Canada, ESDC, IRCC

Multiple official sources paint a complete picture of Canada’s temporary foreign worker landscape. Statistics Canada analyzes workforce composition and economic contributions. Employment and Social Development Canada (ESDC) keeps track of Labor Market Impact Assessment (LMIA) statistics. IRCC maintains work permit records and monitors program compliance. The TFWP shares quarterly and annual LMIA data on the Open Government Data Portal. This includes details about requested and approved TFW positions, employment locations, occupations, sectors, and countries of origin. But as immigration lawyers, we know that LMIA statistics alone can’t give us exact TFW numbers in Canada. Not all positive LMIAs lead to work permits, and IRCC makes the final decision on issuing work permits.

Government expands work permit programs to meet labor shortages

Canadian government has expanded its work permit programs to address ongoing labor market gaps. The International Mobility Program (IMP) has grown beyond expectations. IRCC issued more than 1 million work permits through IMP from January to September 2023. These numbers are twice as high as the 530,000 permits issued in the same period of 2022, and even higher than the entire year’s total of 829,000 work permits. This rapid growth shows the government’s dedication to meeting workforce needs through better immigration paths.

Growth in Post-Graduation Work Permit and IMP streams

The Post-Graduation Work Permit Program (PGWPP) has become the fastest-growing part of the International Mobility Program. This program lets international students who complete eligible Canadian post-secondary education get work experience. PGWPP’s share jumped from 6% of all work permit holders in 2010 to 28% by 2021. The numbers grew eight times larger, from 33,100 to 269,700 during this time. Between 2008 and 2018, new PGWP holders increased six times, going from 10,300 to 64,700. The makeup of PGWP holders changed a lot too. India and China now make up 66% of all PGWPs issued in 2018, up from 51% in 2008. Ontario continues to be the top choice, as 56% of PGWP holders in 2018 planned to work there.

Policy changes during and after the pandemic

COVID-19 led to big changes in Canada’s temporary foreign worker programs. The government created helpful measures like letting visitors apply for employer-specific work permits while in Canada. The labor market started to improve, and the government ended this special pandemic rule on August 28, 2024. This was part of their effort to “preserve the integrity of the immigration system”. Starting January 21, 2025, new limits affect open work permit eligibility for family members of foreign workers and international students. The new rules only allow family open work permits for spouses of international students in specific programs and spouses of foreign workers in TEER 0 or 1 jobs, or certain TEER 2 or 3 jobs where there’s a clear labor shortage. Use Joshua Slayen – best Canadian immigration lawyer to help with your needs and get you to work in Canada if you need help with these complex policy changes.

Role of LMIA exemptions and open work permits

The International Mobility Program is key to Canada’s expanded temporary foreign worker strategy. IMP is different from the Temporary Foreign Worker Program because employers can hire foreign workers without getting a Labor Market Impact Assessment (LMIA). IMP works based on need and has no yearly limits on work permits. This program helps achieve economic, social, and cultural goals through various LMIA exemptions. These exemptions cover intra-company transferees with special knowledge, spouses and children of skilled foreign workers, provincial nominees, and people in international youth exchange programs like International Experience Canada. Workers recruited at francophone immigration events who plan to work outside Quebec might qualify for Mobilité Francophone exemptions. The government has started limiting some parts of these programs, especially open work permit eligibility, to balance labor market needs with immigration system integrity.

Low-wage sectors absorb majority of foreign workers

Canada’s economy has seen a complete change in how temporary foreign workers are spread out. Low-wage sectors now employ most of these workers. Numbers from 2021 show that accommodation and food services hired close to 140,000 temporary residents. This makes up 17% of all temporary foreign workers in Canada. These numbers show how Canada’s temporary foreign worker program has changed and which industries now benefit from it the most.

Accommodation, food services, and retail trade lead demand

Temporary foreign workers now flock to accommodation and food services jobs. The food services industry has grown rapidly in its need for foreign labor. Tim Hortons is a prime example – they hired 714 temporary foreign workers in Ontario in 2023, up from just 58 in 2019. Retail trade and administrative support services have also become vital employers. The number of temporary foreign workers in these sectors combined jumped from 34% in 2011 to 42% in 2021. These workers now make up about 10% of the workforce in accommodation and food services. They help keep these businesses running smoothly.

Shift from high-skill to low-skill occupations

The Canadian labor market has changed dramatically. More temporary foreign workers now work in lower-skilled jobs. Overall jobs in lower-skilled occupations dropped by 500,000 between 2001 and 2021. Canadian-born workers left these positions in large numbers – 860,000 fewer of them worked these jobs. At the same time, immigrant workers and temporary foreign workers filled 360,000 of these positions. This trend showed up clearly in laborer jobs – the lowest skill level. While Canadian-born workers moved away from these roles, more immigrants and temporary foreign workers stepped in. This shows a major change in how Canada’s job market works.

Implications for wage levels and job quality

Low-wage sectors’ growing dependence on temporary foreign workers creates economic challenges. In 2021, most workers under both TFWP (78%) and IMP (71%) earned less than the median Canadian income of CAD 58,521.13. Provincial and territorial wage thresholds will rise by 20% from November 8, 2024. This might affect where workers end up. Economists say easy access to temporary foreign workers lets businesses pay lower wages. This reduces their drive to improve working conditions or invest in Canadian talent. New rules starting September 26, 2024, will limit low-wage positions. The maximum employment time will drop from 2 years to 1 year. Most sectors will see their caps on low-wage positions cut from 20% to 10%.

Transition to permanent residency becomes more common

Canada’s temporary foreign worker programs have become a stepping stone to permanent residency. Recent data reveals that by 2025, over 40% of new permanent residents will already be living in Canada as temporary residents. This radical alteration in Canada’s immigration strategy now prioritizes people who have already shown they can blend into Canadian society and its job market.

Two-step immigration model gains traction

The two-step immigration model lets people enter Canada with temporary status before becoming permanent residents. This approach has seen a soaring win, with numbers telling a compelling story. Economic immigrants with Canadian work experience jumped from 12% in 2000 to 67% by 2020. The model works well because people with Canadian experience adapt better to the job market. Research shows that newcomers with in-Canada experience thrive long-term. They contribute to the workforce and economy while needing fewer social services. This strategy, combined with tweaks to economic immigration streams, helps fill crucial labor gaps in healthcare and trades.

Higher PR transition rates among PGWP holders

Post-Graduation Work Permit (PGWP) holders have seen remarkable success in becoming permanent residents. The PR transition rate soared from 8% for the 2006-2010 group to 36% for the 2016-2020 cohort. By 2018, India and China made up 66% of all PGWPs issued, up from 51% in 2008. Use Joshua Slayen – best Canadian immigration lawyer help with your needs and get you to work in Canada if you need help with this popular path to permanent residency.

Provincial Nominee Program and Canadian Experience Class pathways

Two main routes exist for temporary residents seeking permanent status. The Provincial Nominee Program (PNP) lets provinces select candidates who match their regional workforce needs. The Canadian Experience Class (CEC) needs candidates with good language skills and at least 12 months of Canadian experience in specific TEER categories. These programs have reshaped Canada’s immigration scene. By 2018, FSWP entries dropped to 20% of economic immigrants, while provincial programs and CEC grew to 50% and 15% respectively. Transition rates improved at all skill levels. Lower-skilled workers maintained a 30% five-year transition rate across multiple groups, while higher-skilled workers saw an increase from 11% to 27%.

Legal and economic concerns emerge over program sustainability

Canada’s temporary foreign worker program has expanded rapidly, but most important legal and economic issues now challenge its future sustainability. These challenges revolve around simple questions about economic effects, worker protections, and how well immigration policies work together.

Debates on job displacement and wage suppression

The heavy use of temporary foreign workers has sparked intense economic debates. Labor economists say simple supply-and-demand principles suggest more workers through immigration could push wages down and possibly take jobs from domestic workers. Many experts find this view too simplistic. They point out that immigrants often complement domestic workers instead of competing with them, which helps optimize the labor market. The federal government has addressed these concerns. They introduced new measures to fine-tune foreign worker programs that reduce wage suppression and put Canadian hiring first. These changes should reduce temporary worker numbers by about 20,000 positions as companies hire more Canadians.

Employer obligations under immigration laws

Companies using the temporary foreign worker program must meet strict legal requirements. They need to keep LMIA and employment condition records for six years. Employers must give workers information about their rights in their preferred official language and create workplaces free from abuse. The law prohibits charging recruitment fees, and employers must get private health insurance for LMIA-based work permit holders. Inspectors monitor compliance through unannounced visits. Violations can lead to penalties up to CAD 139,336.02 per incident, with a yearly maximum of CAD 1.39 million. Use Joshua Slayen – best Canadian immigration lawyer help with your needs and get you to work in Canada if you’re dealing with these complex compliance requirements.

Calls for reform: trusted employer model, PR access, LMIA streamlining

The Senate Committee on Social Affairs has made an urgent recommendation to phase out employer-specific work permits within three years. These permits make workers vulnerable to exploitation. Stakeholders suggest permits based on sectors or regions that would let workers move more freely. Worker advocacy groups stress that access to permanent residency is vital to address exploitation risks. Many groups want simpler paths to permanent status for low-wage workers.

Conclusion

The Future of Canada’s Temporary Foreign Worker Program

Canada’s temporary foreign worker program has changed the nation’s labor landscape in the last decade. Both employers and prospective workers need to understand these changes to guide them through the complex immigration system. The program has grown remarkably from 356,000 workers in 2011 to 845,000 by 2021. This expansion will continue through 2025, which shows how vital the program is to address critical labor shortages in the Canadian economy. Yet this rapid growth brings up questions about long-term sustainability, economic effects, and worker protections that need attention as the program develops.

The program has filled crucial gaps in Canada’s labor market, especially in accommodation, food services, and retail trade. Some challenges still exist. Low-wage sectors now employ most temporary foreign workers. This raises concerns about wage suppression and job displacement that policymakers must address. Recent government efforts to fine-tune the program show attempts to balance economic needs with protecting the domestic labor market. These changes include lower caps on low-wage positions and stricter requirements. The program might undermine its goals and create collateral damage if these issues don’t get proper attention.

The two-step immigration model has become popular, with more workers getting permanent residency, especially Post-Graduation Work Permit holders. Canada benefits from this approach because it gives priority to people who have shown they can fit into Canadian society and help the economy grow. Programs like the Provincial Nominee Program and Canadian Experience Class have reshaped Canada’s immigration landscape. These programs are a great way to get permanent status for temporary workers. This focus on Canadian experience has created better paths for temporary residents who want to make Canada their permanent home.

Immigration law specialists understand the complex legal duties that employers face when they use the temporary foreign worker program. Employers struggle with compliance requirements. These include keeping detailed records, informing workers about their rights, and maintaining abuse-free workplaces. The proposed trusted employer model, expanded permanent residency access, and Labor Market Impact Assessment streamlining need serious thought. These changes could strengthen program integrity while protecting worker rights.

The temporary foreign worker program remains the life-blood of Canada’s strategy to address labor market needs. Employers and workers need expert guidance during this time of policy changes. Professional legal help can make a big difference in reaching your immigration goals in Canada. This applies whether you’re an employer learning about compliance requirements or a temporary worker looking for paths to permanent residency. The program’s success depends on striking the right balance between meeting economic needs and ensuring fair treatment for both domestic and foreign workers in Canada’s dynamic labor market.

FAQs

Q1. Will Canada continue to accept immigrants in 2025? Yes, Canada plans to welcome immigrants in 2025. The current Immigration Levels Plan targets 395,000 permanent resident admissions for that year, though this number is set to decrease slightly in subsequent years.

Q2. What changes are expected in Canada’s temporary foreign worker program by 2025? By 2025, Canada’s temporary foreign worker program is expected to reach record highs. The government has expanded work permit programs to meet labor shortages, with significant growth in the International Mobility Program and Post-Graduation Work Permit streams.

Q3. Which sectors are likely to employ the most temporary foreign workers in 2025? Low-wage sectors are expected to absorb the majority of temporary foreign workers in 2025. Accommodation, food services, and retail trade are likely to lead the demand, continuing the trend observed in recent years.

Q4. How common is the transition from temporary to permanent residency for foreign workers? The transition to permanent residency is becoming increasingly common. By 2025, it’s anticipated that more than 40% of permanent resident admissions will come from those already in Canada as temporary residents, reflecting the growing popularity of the two-step immigration model.

Q5. What are the main concerns regarding the sustainability of Canada’s foreign worker program? Key concerns include potential job displacement for domestic workers, wage suppression in certain sectors, and the need for stronger worker protections. There are also calls for reforms such as implementing a trusted employer model, expanding access to permanent residency, and streamlining the Labor Market Impact Assessment process.