Ottawa expands TFW limits in rural areas, drawing praise from businesses and criticism from economists
The federal government announced new measures allowing employers in eligible rural regions to increase their share of low-wage temporary foreign workers from 10 to 15 per cent between April 2026 and March 2027, citing ongoing hiring challenges.
Employment and Social Development Canada said “some rural communities continue to face acute labour shortages,” adding that businesses are struggling to keep operations running and local economies moving.
Business groups welcomed the change.
“If the required domestic workforce is not available — particularly in rural and remote regions — Canadian businesses should be able to look to other sources of labour to keep their doors open,” David Pierce, the Canadian Chamber of Commerce’s vice-president of government relations, told The Toronto Star.
Restaurants Canada called the move “a step in the right direction.”
Christopher Worswick, an economist at Carleton University, warned the policy is “a step in the wrong direction,” arguing it deepens reliance on temporary labour instead of encouraging higher wages or better conditions to attract workers.
Jim Stanford, director of the think tank Centre for Future Work, told The Star there’s no evidence of a labour shortage and employers need to pay workers more.
“Many employers are refusing to acknowledge their responsibility … to mobilize a labour force that is viable for them, and that means paying workers better,” Stanford said.
