Big Changes for Hiring Foreign Workers
Canada is shaking up its Temporary Foreign Worker Program (TFWP) in 2025 with stricter rules and new job categories to better balance the needs of Canadian workers and businesses. The government wants to make sure local workers get first dibs on jobs while still letting employers hire foreign workers when needed. These changes, announced by Minister Randy Boissonnault, include tougher Labour Market Impact Assessment (LMIA) rules and updated job lists, affecting businesses across the country. Here’s what you need to know about the 2025 reforms.
Stricter LMIA Rules Explained
The LMIA is a key step for employers hiring foreign workers, proving no Canadian is available for the job. Starting November 8, 2024, high-wage stream jobs must pay at least 20% above the provincial or territorial median wage, up from the previous threshold. This could mean a $5 to $8 per hour increase, depending on the province. For low-wage jobs, LMIAs won’t be processed in areas like Montréal (until November 30, 2025) or Laval (March 3 to November 30, 2025) if unemployment is 6% or higher. Employers can hire only 10% of their workforce through the low-wage stream, down from 20%, except in sectors like healthcare or agriculture.
New Job Categories Added
The 2025 reforms update the list of jobs eligible for the TFWP to match Canada’s labour needs. New categories focus on high-demand areas:
- Tech and IT roles, like software developers, to support Canada’s growing digital economy.
- Green energy jobs, such as solar panel installers, to meet climate goals.
- Healthcare roles, including nurse aides and medical technicians, to address shortages.
These additions make it easier for employers in these fields to hire foreign workers, especially through Provincial Nominee Programs (PNPs) that can lead to permanent residency. Check the Canada.ca website for the full list of eligible jobs.
| Stream | Key Change | Impact |
|---|---|---|
| High-Wage | 20% above median wage | Fewer jobs qualify, higher pay required |
| Low-Wage | 10% workforce cap | Limits foreign hires in most sectors |
| New Jobs | Tech, green energy, healthcare | Easier hiring in high-demand fields |
What Employers Need to Do
Employers face more hurdles with these changes. They must prove they tried hiring Canadians first, provide housing and transportation for low-wage workers, and face stricter inspections to prevent misuse. LMIAs are now valid for only six months, down from 12, so employers need to act fast. Businesses in high-unemployment areas, like Montréal, can’t use low-wage LMIAs at all, except for agriculture or healthcare. Penalties for breaking rules are steep—fines up to $100,000 per violation or a permanent ban from the program. Employers should check their hiring plans now to stay compliant.
Protecting Canadian Workers
The reforms aim to put Canadian workers first, especially with youth unemployment at 13.5% and higher rates for Indigenous people (7.7%) and those with disabilities (65.1% employment rate). By raising wages for high-wage jobs and limiting low-wage hires, the government hopes to boost local hiring and prevent wage suppression. Posts on X show mixed feelings—some praise the focus on Canadians, while others worry about labour shortages in small businesses. The government says it’s watching the program closely and may tweak rules if needed.
What’s Next for Businesses and Workers
These changes mean businesses need to plan carefully, especially in low-wage sectors. Foreign workers already in Canada face shorter work terms (one year for low-wage jobs) and more pressure to renew permits. For workers eyeing Canada, high-demand fields like tech or healthcare are the best bet. Employers and workers can visit Canada.ca or contact an immigration expert to navigate the new rules. With these reforms, Canada is balancing local jobs with global talent—could your business or career be affected?
