On This Page You Will Find
- Why demand for temporary foreign workers has fallen
- New government data on TFW arrivals to Canada
- How Canada’s changing labour market is affecting employers
- Why companies are shifting back to hiring Canadians
- What the trend means for workers and employers
- Frequently asked questions about the Temporary Foreign Worker Program
Demand For Temporary Foreign Workers Continues To Decline
Demand for Temporary Foreign Worker Program (TFWP) candidates continues to fall as Canada’s labour market adjusts from the post-pandemic labour shortages that drove record hiring in 2022 and 2023.
Official data on new worker arrivals shows a sustained decline throughout 2025 and into 2026, reflecting weaker employer demand and tighter federal rules designed to reduce reliance on temporary foreign workers.
The trend comes as major employers increasingly focus on recruiting Canadian workers amid rising unemployment among young people.
New Arrivals Have Fallen Dramatically
Government data since December 2023 shows that new temporary foreign worker arrivals peaked at 10,940 in April 2024.
Since then, arrivals have steadily declined.
Monthly arrivals fell to just 2,090 by December 2025 before rising seasonally to 6,445 in April 2026.
Even with the spring increase, April 2026 arrivals remained roughly 41 per cent lower than the same month two years earlier.
The figures also show a much lower baseline throughout 2026 compared with 2024, suggesting the reduction is structural rather than temporary.
The pattern closely follows federal policy changes introduced in September 2024 to encourage employers to hire Canadians first and reduce dependence on temporary foreign workers.
Why The Labour Market Has Changed
According to McMaster University economist Colin Mang, the rapid expansion of the TFWP addressed an exceptional labour shortage rather than a permanent structural need.
“The temporary foreign worker program really started to expand back in 2022, when unemployment was very low,” Mang told CTV News.
At the time, employers across multiple industries struggled to recruit workers, particularly after the pandemic.
Youth unemployment was also unusually low, prompting the federal government to use immigration programs, including the TFWP, to help fill persistent labour shortages.
However, today’s labour market looks very different.
“It was only a temporary need,” Mang said. “You fast-forward four years and what we now have is not enough jobs for Canadian youth.”
Statistics Canada recently reported that unemployment among Canadians aged 15 to 24 reached 14.3 per cent in April 2026, highlighting the growing challenge facing younger job seekers.
Employers Increasingly Focus On Local Hiring
The shift is already visible among some of Canada’s largest employers.
Tim Hortons recently announced plans to recruit 10,000 new local employees as it continues reducing its reliance on temporary foreign workers.
The company employs approximately 110,000 people across Canada, with about 4,000 hired through the Temporary Foreign Worker Program, representing around 3.6 per cent of its workforce.
Tim Hortons says the number of temporary foreign workers it employs has been declining since 2024.
Mang believes other employers are likely to follow a similar approach as public expectations and labour market conditions continue to change.
He said companies now face increasing pressure from both consumers and governments to prioritise hiring Canadians wherever possible.
Federal Measures Have Reduced Applications
The decline in arrivals follows significant reforms introduced by the federal government in September 2024.
The measures aimed to reduce employer reliance on temporary foreign workers by strengthening local hiring requirements and increasing penalties for misuse of the program.
According to the federal government, the changes resulted in:
- A 50 per cent reduction in overall Temporary Foreign Worker Program applications.
- A 70 per cent reduction in applications under the low-wage stream.
The arrival figures for 2025 and 2026 suggest those policy changes continue to have a significant impact.
What The Trend Means Going Forward
Canada’s Temporary Foreign Worker Program remains an important source of labour for sectors facing genuine shortages.
However, the latest data suggests employers are increasingly relying on domestic recruitment as labour market conditions soften.
Seasonal demand will likely continue to create fluctuations throughout the year, particularly in agriculture and tourism, but the overall trend points towards lower use of temporary foreign workers than seen during the labour shortages of 2022 through 2024.
Whether that trend continues will largely depend on Canada’s broader economy, unemployment levels and future government immigration policy.
Frequently Asked Questions
Why has demand for temporary foreign workers fallen in Canada?
Demand has declined because Canada’s labour market has weakened since the record shortages experienced after the pandemic. Higher unemployment, particularly among young Canadians, means more domestic workers are available. Federal policy changes introduced in 2024 have also encouraged employers to recruit Canadians before seeking temporary foreign workers.
Are temporary foreign workers still needed?
Yes. The Temporary Foreign Worker Program continues to support industries experiencing genuine labour shortages, particularly agriculture, seasonal tourism and certain skilled occupations. However, employers must now demonstrate greater efforts to hire Canadians first, reducing overall reliance on the program.
Why did temporary foreign worker numbers increase after 2022?
Canada experienced severe labour shortages following the pandemic as businesses struggled to recruit staff while economic activity recovered. The federal government expanded access to temporary foreign workers to help employers fill vacancies that could not be filled through the domestic labour market.
What changes did the federal government make in 2024?
In September 2024, the government introduced measures to prioritise local hiring, reduce employer reliance on temporary foreign workers and strengthen enforcement against misuse of the program. These reforms have significantly reduced both applications and new worker arrivals.
Will temporary foreign worker numbers continue to fall?
The long-term trend will depend on economic conditions. If unemployment remains elevated and more Canadians are available for work, employer demand for temporary foreign workers is likely to remain lower than during the peak labour shortages. Future immigration policy and sector-specific labour needs will also influence demand.