11.11.2026

"Canada Extends Low-Wage Worker Program to Two Years"

OTTAWA — The federal government is extending the period of time a business can employ a low-wage temporary foreign worker

OTTAWA — The federal government of Canada is set to extend the duration for which businesses can employ low-wage temporary foreign workers. This change will increase the maximum length of a Labour Market Impact Assessment (LMIA) — the necessary document for employers to hire temporary foreign workers — from one year to two years.

While the current restrictions on hiring temporary foreign workers in cities with unemployment rates exceeding six percent will remain intact, the government has announced that early childhood educators will be added to the list of professions exempted from these restrictions. This list also encompasses certain roles in healthcare, construction, and food processing industries.

Additionally, the government has proposed a series of measures regarding low-wage LMIA applications, scheduled to take effect on March 1, 2027, contingent on provinces and territories opting in. Among these proposals are provisions that would enable provincial and territorial governments to add or remove occupations from the list of jobs exempt from the six-percent hiring cap.

Furthermore, Ottawa is suggesting that provinces and territories be granted the authority to allow employers to increase the proportion of low-wage temporary foreign workers in their workforce from the current limit of 10 percent to 15 percent. Immigration Minister Lena Diab emphasized the government's intent to collaborate more closely with provinces and territories to tailor the temporary foreign worker program according to the specific needs of different regions.

During a press conference in Stellarton, Nova Scotia, Diab highlighted the widespread recognition of the need for such a program across the country. She stated, "I have heard also loud and clear from many people across the country, no matter who they are, that there is a need for that program." Diab acknowledged that while there may be an increase in the share of temporary workers in certain fields, the government remains committed to ensuring that all job opportunities should be made accessible to Canadian citizens first.

Diab further noted, "But we do recognize that we also need the skilled trades and the skilled people that have different skills than what we have in Canada, but also there are regions in the country that do not have the Canadians applying." According to her, the decisions regarding the proposed changes will ultimately rest with the provinces and territories, which will determine their appropriateness for their respective regions.

In Stellarton, Diab also announced the transition of the Rural Community Immigration Pilot into a permanent government program and a pathway to permanent residency. This initiative has connected skilled foreign workers with over 1,950 vetted employers in 14 rural communities that have faced labor shortages unable to be filled by local workers alone.

The program has allocated approximately 5,500 permanent residency slots and plans to expand this initiative to more communities in the future. The recent federal budget indicated potential reforms to the temporary foreign worker program, although detailed information about these changes was not provided until after the announcement.

In response to these developments, Conservative Leader Pierre Poilievre has asserted that the temporary foreign worker program should not be an option in communities where the unemployment rate exceeds 5.5 percent. As reported by Statistics Canada, the national unemployment rate stood at 6.7 percent in October, fluctuating between approximately 6.5 percent and seven percent over the past two years.