Canada New Rules for Temporary Foreign Worker Program: LMIA Now at the Centre

Canada has made major changes to its Temporary Foreign Worker Program, shifting all wage and labour checks into the LMIA process.

From late 2024 through 2025, the government tightened rules, reduced permit lengths for some workers, and removed wage assessments from the Temporary Foreign Worker Program so that every application now revolves around a Labour Market Impact Assessment (LMIA).

This guide explains what an LMIA is, how employers can comply with the new rules, and what these reforms mean for people who want to come to Canada through the Temporary Foreign Worker Program.

What is Labour Market Impact Assessment (LMIA)?

The Temporary Foreign Worker Program relies on the LMIA as its main screening tool for most employer-specific work permits.

When an employer wants to hire someone from overseas under the Temporary Foreign Worker Program, they usually must first obtain a positive LMIA from Employment and Social Development Canada (ESDC).

An LMIA answers two key questions:

• Is there a real labour shortage for this position in Canada?
• Will hiring a foreign worker hurt Canadian workers’ wages or job prospects?

To get a positive LMIA, an employer has to:

• Prove they tried to recruit Canadian citizens and permanent residents first (for example, by advertising the job in Canada for a required period).
• Offer wages and working conditions that are at least equal to what Canadians in the same region and occupation receive.
• Show that hiring a foreign worker will support, not damage, the local labour market.

If ESDC is satisfied, it issues a positive LMIA. The foreign worker then uses that LMIA, together with the job offer and employment contract, to apply for a work permit.

For official guidance and the most up-to-date forms, always check the Government of Canada LMIA and work permit information.

How the LMIA Process Works for Employers

For employers, the LMIA is now the central step in using the Temporary Foreign Worker Program.

The process normally includes these stages:

1. Assess your staffing needs

• Confirm there is a genuine shortage of workers.
• Record how long the vacancy has been open and any problems caused by the shortage.

2. Recruit in Canada

• Advertise the job using approved methods and for the required minimum time.
• Keep copies of job ads, interview notes, and reasons for rejecting Canadian applicants.

3. Prepare the LMIA application

• Fill out the correct LMIA form for your stream (for example, high-wage or low-wage).
• Provide a detailed job offer and written employment contract.
• Include wage information that matches current regional and occupational wage data.
• Attach proof of recruitment efforts.

4. Submit to ESDC and wait for a decision

• ESDC reviews your file, may ask for more documents, and then issues a positive or negative LMIA.

5. Foreign worker applies for a work permit

• The worker submits the LMIA, the LMIA number, the job offer, and the signed contract to Immigration, Refugees and Citizenship Canada (IRCC).

Employers must also choose the correct stream within the Temporary Foreign Worker Program (for example, high-wage, low-wage, agricultural, caregiver, or other sector-specific streams).

Overview of Canada’s Temporary Foreign Worker Program

The Temporary Foreign Worker Program allows Canadian employers to fill short-term or seasonal labour shortages when no qualified Canadians or permanent residents are available.

Over the past few years, government reviews found that some employers were not respecting the goals of the Temporary Foreign Worker Program, including hiring foreign staff when local workers were available or offering wages below local standards.

To fix these issues, Canada has redesigned how the Temporary Foreign Worker Program is managed, using the LMIA to verify both the job offer and the wage level.

Key Changes: Wage Assessments Removed, LMIA Becomes the Only Check

Until recently, some parts of the Temporary Foreign Worker Program involved separate wage assessments that were carried out alongside the LMIA review.

As of December 2025, the government removed those stand-alone wage checks from the Temporary Foreign Worker Program; instead, wages are reviewed only within the LMIA decision.

This change aims to:

• Simplify the process by removing duplicate assessments.
• Ensure wages are always reviewed directly in the LMIA file.
• Strengthen protections for Canadian workers by giving the federal government more control over when and how foreign workers are hired.

New Rules for the Low Wage Stream (Effective December 26, 2024)

On 26 December 2024, stricter rules took effect for employers who use the Low-Wage stream of the TFWP. The main measures include:

Unemployment threshold in large cities

• In census metropolitan areas (large urban regions), LMIA applications for low-wage jobs are not accepted when the local unemployment rate is above 6%.
• Seasonal and non-seasonal jobs that are essential for food security or healthcare are exempt from this rule.

Limit on low-wage foreign workers per employer

• An employer can now fill only up to 10% of their total workforce with low-wage positions under the TFWP.

Shorter work periods for low-wage jobs

• The maximum work permit length for low-wage workers has been reduced from two years to one year.

These restrictions are designed to make sure Canadians get first access to low-wage jobs while still allowing businesses in critical sectors to hire foreign workers when absolutely necessary.

Changes Already in Place Before the December 2025 Update

Before wage assessments were removed in December 2025, Canada had already introduced several other measures to tighten control of the program:

Shorter LMIA validity

• A positive LMIA now remains valid for six months, instead of the previous 18 months.
• Employers must move more quickly to use their LMIA and bring in the worker.

Lower caps on temporary foreign workers per employer

• The former maximum of 30% of an employer’s workforce made up of temporary foreign workers has been cut to 20% in most cases.

Regional restrictions

• In some regions, including Montreal, LMIA applications for certain low-wage jobs paying less than $27.47 per hour were temporarily paused from 17 December 2025 for six months.
• These targeted measures are meant to protect local workers in areas with weaker labour markets.

Together, these changes show that Canada wants to balance real economic needs with strong protection for domestic workers.

How Employers Can Stay Compliant

To operate safely under the new rules, employers should:

1. Review staffing plans early

• Decide which positions might genuinely require foreign workers.
• Check whether your region’s unemployment rate or any regional pause could block LMIA applications.

2. Document every recruitment step

• Keep clear records of all job ads, interview notes, and candidate evaluations.
• Be ready to show why Canadian applicants were not suitable.

3. Offer competitive, fair wages

• Match or exceed prevailing wages for the occupation and region.
• Make sure the wage in the LMIA application and the employment contract are identical.

4. Monitor sector-specific rules

• Some essential sectors such as agriculture, food processing, healthcare, and construction still have more access to foreign workers, but each stream has specific conditions.
• Rules can change, so check updates regularly on official government websites.

Implications for Foreign Workers

The move to a fully LMIA-driven Temporary Foreign Worker Program has important consequences for people hoping to work in Canada.

Because more checks now happen before a job offer is approved, workers who apply through the Temporary Foreign Worker Program face a stricter screening process.

Key effects include:

More detailed employer vetting

• Employers must show that they tried to hire locally and that hiring from abroad is a last resort.
• Only serious employers who can meet all LMIA requirements are likely to receive approvals.

Less stability for some low-wage positions

• Work permits for many low-wage jobs are now limited to a maximum of one year.
• Some regions have temporary pauses on low-wage hiring, which can reduce opportunities.

Ongoing demand in essential sectors

• Healthcare institutions still need foreign nurses, personal support workers, and other professionals.
• Farms continue to depend on seasonal agricultural workers.
• Food processing, construction, and certain care roles remain in high demand.

Applicants who have skills and experience in these priority areas may have a better chance of success under the current rules.

How Employers and Workers Can Succeed Under the Temporary Foreign Worker Program

Employers who want to keep using the Temporary Foreign Worker Program need to plan recruitment farther in advance and document every step.

Workers who hope to benefit from the Temporary Foreign Worker Program should target jobs in essential sectors such as healthcare, agriculture, food processing, construction, and caregiving.

Both sides should also:

• Check the latest official rules before applying, because program conditions can change quickly.
• Make sure all forms are complete, accurate, and consistent (job title, wage, duties, and location must match across the LMIA, job offer, and work permit application).
• Seek professional immigration advice if the situation is complex, such as multiple worksites, mixed wage levels, or changing business needs.

Conclusion

By understanding the new LMIA-based rules and respecting the protections for Canadian workers, both employers and applicants can continue to use the Temporary Foreign Worker Program as a legal and effective way to fill genuine labour shortages.

Always verify  the most recent requirements on official Government of Canada websites before submitting any application, as policies and thresholds may change over time.

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