Canada has introduced another significant change to its immigration and labour market policies, raising the wage threshold for employers seeking to hire through the Temporary Foreign Worker Program (TFWP).
Effective July 17, 2026, employers must meet higher provincial wage requirements before they can recruit foreign workers, while businesses in regions with unemployment rates of 6% or more face fresh restrictions on hiring under the programme's low-wage stream.
This move is the latest in a series of reforms aimed at reducing Canada's reliance on temporary foreign labour while ensuring employers offer wages that better reflect local labour market conditions. This means higher labour costs and tighter compliance requirements for employers and foreign workers; it could narrow opportunities in some sectors while improving pay and working conditions in others.
What Has Changed Under the Temporary Foreign Worker Program?
Employment and Social Development Canada (ESDC) has raised the wage threshold separating the Temporary Foreign Worker Program's low-wage and high-wage streams to 120% of the median hourly wage in each province and territory, replacing the previous benchmark based on the provincial median wage. The updated thresholds, calculated using Statistics Canada data, took effect on July 17, with applications submitted before that date continuing to be assessed under the old rules.
Treasure Ayanfe Adetula
The change determines whether an employer's Labour Market Impact Assessment (LMIA) application is processed under the High-Wage Stream or the Low-Wage Stream. Employers hiring under the High-Wage Stream must submit transition plans showing how they intend to reduce reliance on foreign workers over time, while those in the Low-Wage Stream remain subject to stricter hiring caps and additional restrictions.
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