Canada Plans 230,000 Temporary Foreign Workers in 2026

Canada’s temporary foreign worker intake could reach 230,000 in 2026 under the federal government’s annual immigration levels plan.

The government expects to admit 60,000 workers through the Temporary Foreign Worker Program (TFWP) and a further 170,000 through the International Mobility Program (IMP) this year.

The figures come as Canada introduces changes that could give some employers with several small work locations greater scope to hire low-wage temporary foreign workers.

Under the previous approach, employers were generally restricted to having low-wage foreign workers make up no more than 10 per cent of their workforce through the TFWP. The limit rises to 20 per cent for some in-demand sectors, including health care, construction and food production.

The new calculation could make a difference for employers operating multiple small sites. An employer with fewer than 10 workers at a qualifying location can now hire one low-wage temporary foreign worker at that site. Businesses in specified in-demand sectors can hire up to two workers at each qualifying small location.

Employment and Social Development Canada (ESDC) updated the programme requirements on August 18, 2026. Eligible employers can now use the number of workers at each individual location when calculating their limit.

This could particularly help businesses with several small restaurants, care facilities or construction sites. Rather than relying only on the employer’s total workforce across Canada, the calculation can now take account of employees at each qualifying location.

“For example, an employer operating several small restaurants, care facilities or construction-related locations could potentially qualify for more low-wage foreign workers than it would under a calculation based solely on its overall workforce,” the post read.

ESDC said the workforce calculation covers full-time and part-time employees, temporary foreign workers with approved LMIAs who have not yet started their jobs, and vacant positions for which an employer is requesting workers through an LMIA application.

Part-time employees who work an average of fewer than 30 hours a week count as 0.5 of an employee under the calculation.

However, the change does not remove the requirement for employers to obtain a positive or neutral Labour Market Impact Assessment (LMIA) before hiring or retaining workers through the TFWP.

The LMIA process is designed to determine whether a qualified Canadian citizen or permanent resident is available to fill the position.

Canada also retains other restrictions on low-wage TFWP recruitment. Since September 2024, authorities have generally stopped processing low-wage LMIA applications for positions in certain urban areas where unemployment is above 6 per cent.

Employers using the low-wage stream must also meet additional conditions. These include covering workers’ travel costs to and from Canada, providing suitable accommodation and arranging private health insurance when a worker is not covered by a provincial or territorial health plan.

The International Mobility Program remains the larger of Canada’s two major temporary work-permit routes. Most temporary work permits issued in Canada come through the IMP, which is generally exempt from the LMIA requirement.

The latest changes could therefore give some businesses more flexibility while Canada continues to manage its temporary foreign worker programmes and broader immigration targets.

Could the new rules help Canadian businesses address labour shortages without weakening protections for foreign workers?