Canada has made significant updates to its Temporary Foreign Worker Program that change how employers can bring in workers from other countries. Starting in December 2025 the government removed wage assessments from the TFWP. Now employers must use only Labour Market Impact Assessments when they want to hire temporary foreign workers. The Canadian government introduced these changes to protect Canadian workers and make sure wages stay fair while stopping people from abusing the program. This article explains the main updates & describes how LMIA works. It also offers helpful information for employers and foreign workers who need to understand the new system.
What Is a Labour Market Impact Assessment (LMIA)?
Understanding the Labour Market Impact Assessment A Labour Market Impact Assessment or LMIA is an official document from Employment and Social Development Canada that lets Canadian employers bring in workers from other countries. It works as government confirmation that no suitable Canadian worker or permanent resident can fill a particular position.
The Purpose of LMIA
This assessment process has two key functions. First it requires employers to prove they face genuine labour shortages. Companies must demonstrate they tried hard to find Canadian citizens or permanent residents before looking abroad for workers. Second it protects fair employment standards. When an LMIA comes back positive it means hiring someone from another country will not harm Canadian workers or drive down wages. Employers need this positive LMIA before any foreign worker can even start applying for their work permit. Some people call it a confirmation letter.
How to Get an LMIA
The process works in three stages. The employer starts by applying to ESDC. They submit information about the job opening and explain what they did to recruit locally. They also provide details about the wages they plan to pay. ESDC then reviews everything to decide if bringing in a foreign worker makes sense. If they approve the request the employer gets a positive assessment and can move forward. Finally the foreign worker applies for their work permit. They need to include their job offer and employment contract along with a copy of the LMIA and its reference number.
Temporary Foreign Worker Program (TFWP) Overview
Canada’s Temporary Foreign Worker Program allows employers to hire foreign workers for temporary jobs when they cannot find qualified Canadians. Recent program reviews discovered that some employers were misusing the system by not trying hard enough to hire Canadians first and paying foreign workers lower wages. The Purpose of the TFWP The program was created to solve temporary worker shortages in key industries & support Canadian businesses that have difficulty finding local employees while protecting the wages and rights of Canadian workers. Recent Changes to the TFWP The Canadian government has introduced important changes to strengthen oversight & prevent misuse of the program. Employers no longer complete separate wage evaluations for the TFWP because wages are now reviewed only during the LMIA process. All work permit applications under the TFWP now need a positive LMIA. Some industries like agriculture and food processing along with healthcare and construction can still hire temporary foreign workers while other sectors face stricter limitations.
TFWP New Rules Effective December 26, 2025
The latest TFWP reforms started on December 26 2024 and introduced tougher rules for employers while reducing access to foreign workers in specific situations. Low-Wage Stream Restrictions For jobs in the Low-Wage stream employers now face several new limits
LMIA applications will not be accepted in census metropolitan areas where unemployment is above 6%.
Seasonal and non-seasonal positions in essential sectors like food security and healthcare are not affected by this rule.
Employers can only hire up to 10% of their workforce through the TFW Program for low-wage jobs.
The maximum work period for low-wage workers dropped from two years to one year.
These changes focus on giving Canadian workers priority while still letting businesses hire foreign workers when truly needed.
Changes Already Implemented
Before the December 2025 update the government had already made these changes:
Reduced LMIA validity where LMIA approvals now last six months instead of 18 months.
Lower caps on temporary foreign workers where the previous 30% maximum of total workforce per employer dropped to 20%.
Regional restrictions such as in Montreal where LMIA applications for low-wage jobs paying less than $27.47/hour were temporarily stopped from December 17, 2025 for six months.
These updates show that Canada wants to balance economic requirements with protecting domestic workers.
How Employers Can Comply with the New LMIA Rules
Assess Job Requirements
Before applying for an LMIA employers need to confirm that hiring a foreign worker is necessary. They must document all efforts made to recruit Canadian citizens or permanent residents. Employers should also check if the job belongs to exempted sectors like healthcare or agriculture.
Prepare LMIA Application
The LMIA application must contain a job offer letter and employment contract. It should include proof of recruitment efforts and advertising results. The proposed wage information needs to match current market rates.
Submit LMIA to ESDC
After completing the application employers should submit it to ESDC for assessment. A positive LMIA confirms that hiring a foreign worker is justified.
Foreign Worker Applies for Work Permit
Once the LMIA is received the foreign worker can apply for a work permit. The application requires a job offer letter and employment contract. The worker must also provide the LMIA copy & LMIA number.
Implications for Foreign Workers
How the LMIA System Affects Foreign Workers The LMIA-focused system creates several important changes for foreign workers coming to Canada.
– Stricter Application Process Work permits now require direct LMIA approval. This means foreign workers must go through the full Canadian recruitment process without exceptions. Employers need to prove they tried to hire locally before bringing in workers from abroad.
– Less Stable Employment Workers in low-wage jobs face shorter work permit durations than before. Some regions have temporary hiring freezes that prevent new foreign workers from getting jobs in those areas. Montreal is one example where these regional restrictions currently apply.
– Strong Demand in Key Industries Despite tighter rules certain sectors still need foreign workers badly. Healthcare facilities continue hiring international nurses and care workers. Farms need seasonal agricultural workers throughout the year. Food processing plants maintain steady demand for production staff. These essential industries can still bring in foreign workers under the new system because Canada depends on them to function properly. The changes make the process more complex but do not eliminate opportunities entirely. Workers with skills in high-demand sectors have better chances of approval than those applying for general positions.
Preparing for the Future of TFWP Hiring
Canada keeps making changes to the Temporary Foreign Worker Program and it is important to stay up to date with what is happening. Employers need to pay attention to new rules about LMIA processing and how wages are calculated in different areas. They also need to know about any restrictions that apply to their region. Foreign workers should look for jobs in sectors that are considered essential and make sure they have all the required documents ready when they apply for their work permits.
