The federal government is relaxing parts of its Temporary Foreign Worker Program, allowing employers to hire low-wage foreign workers for up to two years instead of one, reversing a restriction introduced in September 2024. The change, which took effect November 6, 2026, applies to new Labour Market Impact Assessment (LMIA) applications and is intended to provide greater certainty for businesses facing persistent labour shortages. An LMIA is the federal assessment employers generally need before hiring a temporary foreign worker, establishing whether the position can reasonably be filled by a Canadian citizen or permanent resident and specifying an approved employment period.
Employment and Social Development Canada says the longer duration will reduce the need for repeated applications while allowing businesses to retain workers for longer periods. Jobs Minister Patty Hajdu described the changes as part of an effort to make the program more responsive to regional labour demands while maintaining priority for Canadian workers.
The changes do not eliminate restrictions introduced to protect employment opportunities in areas with higher unemployment. Ottawa will continue refusing to process most low-wage LMIA applications in census metropolitan areas where unemployment is six per cent or higher, although exemptions remain for priority sectors including health care, construction and food processing.
The government is now adding early childhood educators to that exemption list, allowing qualifying employers to apply even in regions exceeding the unemployment threshold. That distinction matters in Alberta, where the federal government's latest figures place Calgary's unemployment rate at 6.4 per cent and Edmonton's at 7.6 per cent for LMIA processing purposes between October 9, 2026, and January 7, 2027. Employers in those cities will therefore remain unable to access the program for most non-exempt low-wage positions despite the longer employment period.
Ottawa is also proposing a broader restructuring of the program that could take effect March 1, 2027, subject to provincial and territorial participation. Under the proposal, provinces would gain greater influence over which occupations qualify for temporary foreign workers, with access tailored to regional labour shortages and rural communities retaining broader eligibility. Provinces could also request permission for eligible employers in designated communities to increase their low-wage temporary foreign workforce from 10 per cent to 15 per cent, while existing priority-sector limits would remain at 20 per cent.
The government says the reforms are intended to balance employers' need for reliable staffing with the availability of Canadian workers, while supporting pathways to permanent residence for established temporary workers. For Alberta businesses, the eventual impact will depend on whether the province participates in the new framework, which occupations qualify and how unemployment conditions change in Calgary, Edmonton and other regional labour markets.
