On March 13, 2026, Employment and Social Development Canada (ESDC) announced targeted, time-limited measures to help rural employers address workforce challenges.
At the request of provinces or territories, the Government of Canada will permit rural employers to temporarily increase the allowable share of low-wage temporary foreign workers from 10% to 15% of their workforce in eligible rural regions.
These measures can be implemented within two weeks of a positive request from a province or territory and could begin as early as April 1, 2026. The measures will remain in place until March 31, 2027.
Sector-specific exemptions from the cap will remain in place. Employers in the health care, construction and food processing sectors will continue to be subject to a 20% cap on their low-wage temporary foreign workforce. Seasonal sectors such as fish and seafood processing and tourism will continue to benefit from the existing TFW Program cap exemption for seasonal positions.
Background
In response to evolving labor market conditions, several measures were implemented between October 2023 and November 2024 to reduce reliance on the TFW Program and ensure Canadians continue to have first access to available jobs. These included:
- a policy of refusing applications for low-wage positions in census metropolitan areas of 6% unemployment rate or higher;
- a decrease of the cap on the percentage of low-wage foreign workers an employer can hire relative to their total workforce from 20% to 10%; and
- a reduction in the maximum employment duration of work permits for low-wage workers to one year.
Erickson Insights & Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.