Canada: Temporary Increase to Low-Wage Temporary Foreign Worker Cap for Rural Employers Forthcoming

The government of Canada has announced a temporary adjustment to the Temporary Foreign Worker (TFW) Program to help address persistent labor shortages in rural regions. At the request of a province or territory, rural employers will be able to temporarily increase the allowable share of low-wage TFWs from 10% to 15% of their workforce (while retaining current numbers). The measure is intended to help employers in rural areas maintain operations where low unemployment and limited local labor supply continue to make recruitment difficult. Employers must still demonstrate that qualified Canadian citizens or permanent residents are not available before hiring foreign workers. The policy could take effect as early as April 1, 2026, following a positive request from a province or territory, and will remain in place until March 31, 2027. Sector-specific rules remain unchanged, including the 20% cap for health care, construction and food processing employers, while seasonal sectors such as fish and seafood processing and tourism continue to benefit from existing cap exemptions. 

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