In a statement released last Friday, the government said the changes aim to support businesses and communities in rural areas that have struggled to find enough local workers, noting that “strong local businesses and a reliable workforce are essential to keeping rural economies growing and communities thriving across Canada.”
Under the temporary policy adjustment, rural employers will be allowed to hire a larger share of low-wage temporary foreign workers.
The maximum proportion of such workers will increase from 10% to 15% of an employer’s workforce, provided the request is supported by a province or territory.
The measure is intended to address persistent labor shortages in less populated regions, where businesses often face greater challenges attracting and retaining workers than in larger cities.
The policy can take effect within two weeks after a province or territory submits a positive request and could be implemented as early as April 1, 2026. It will remain in force until March 31, 2027.
Existing sector-specific exemptions will remain in place. Employers in health care, construction, and food processing will still be allowed to have up to 20% of their workforce made up of low-wage temporary foreign workers.
Seasonal industries, including fish and seafood processing and tourism, will also continue to benefit from the current cap exemption under the TFWP for seasonal roles.
The program allows Canadian employers to hire foreign nationals for temporary positions when qualified Canadian citizens or permanent residents are not available to fill the jobs. Work permits issued under the program are typically tied to a specific employer and position.
Officials said the changes will help maintain economic activity in rural areas while continuing to prioritize employment opportunities for Canadians.
“As we continue to prioritize Canadian workers first, these vital new measures recognize those distinct challenges and will help rural employers keep their businesses running and their communities strong. Rural communities need an approach that respects their unique realities. In many parts of rural Canada, employers are dealing with tight labor markets, smaller local workforces, and fewer people able to move where the jobs are,” Buckley Belanger, Secretary of State for Rural Development, was quoted as saying in the statement.
Business groups welcomed the move, saying many rural companies have struggled to remain fully staffed in recent years.
“Many small businesses across Canada are struggling to keep their doors open with the loss of some fantastic members of their team. Any measure that prevents businesses from losing experienced, trained workers is a positive one,” said Dan Kelly, President of the Canadian Federation of Independent Business (CFIB).
“While unemployment rates have ticked up in Canada, over half (52%) of small business owners using the program report their Temporary Foreign Workers help protect jobs for Canadians. A restaurant struggling to find an experienced cook will not be able to protect jobs for young Canadians waiting tables,” he said, as quoted on the website of CFIB, Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.
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