Changes to the Temporary Foreign Worker Program’s Low-Wage Stream Announced
On November 6, 2026, Employment and Social Development Canada (ESDC) announced changes to the Low-Wage Stream of the Temporary Foreign Worker Program (TFWP). Two changes took effect immediately, with further regional measures proposed for March 1, 2027, subject to provincial and territorial participation.
Changes effective November 6, 2026
Employment duration of up to two years: Low-wage Labour Market Impact Assessment (LMIA) applications submitted on or after November 6, 2026, may support an employment duration of up to two years, up from one year.
New exception for early childhood educators: LMIA applications for early childhood educators can now be processed in census metropolitan areas (CMAs) with an unemployment rate of 6% or higher. These areas generally remain subject to a refusal-to-process policy for low-wage applications, with existing exceptions that include health care, construction and food processing.
Proposed regional measures for March 1, 2027
· Subject to provincial and territorial opt-in, access to the Low-Wage Stream will vary by work location.
· For CMAs with unemployment of 6% or higher: The existing refusal-to-process policy will continue, with exceptions for designated priority occupations and sectors.
· For large CMAs with populations over 250,000 and unemployment below 6%: Access will be for targeted sectors and provinces/territories will have the ability to remove certain occupations from eligibility.
· Rural areas within large CMAs and smaller CMAs with populations of 100,000 to 250,000: Access will be for targeted sectors and provinces/territories will have the ability to remove certain occupations from eligibility.
· Rural communities outside CMAs: Employers will continue to have access to all occupations under the Low-Wage Stream.
· For areas with targeted access, occupation lists will draw on the Canadian Occupational Projection System (COPS). Participating provinces and territories will be able to add or remove occupations to reflect local labour market needs.
Provinces and territories will also have the ability to request a higher cap for eligible employers in selected communities. Where approved, employers will be able to hire temporary foreign workers through the Low-Wage Stream for up to 15% of their workforce, up from the standard 10% cap. Priority sectors will retain their existing 20% cap.
What this means for employers
Employers submitting new low-wage LMIA applications can now consider whether a longer employment period better meets their staffing needs. In determining staffing strategies, employers should monitor these changes and determine whether low-wage LMIAs are available for their business based on current measures in place.
If you, an employee, or your employer have any questions about any aspect of Canadian immigration, you can reach out to us for assistance. Our Canadian immigration legal professionals can be reached by phone (416-368-1111) or via email: caruso@cilf.ca; bonisteel@cilf.ca; ali@cilf.ca; mukherjee@cilf.ca; garciafialdini@cilf.ca; farag@cilf.ca.
