Canada expands work permit access for rural employers, raises cap on low-wage foreign workers

Canada has announced a temporary policy change that will allow rural employers to hire more low-wage foreign workers under the Temporary Foreign Worker Program (TFWP). The move aims to address labour shortages in smaller communities where businesses often struggle to find workers.

According to an announcement made on March 13 by Employment and Social Development Canada (ESDC), rural employers using the program will be allowed to hire additional temporary foreign workers for a limited period. The measure will run from April 1, 2026, to March 31, 2027.

Higher hiring cap for rural employers

Under the new rules, rural employers will be able to maintain their current number of low-wage temporary foreign workers and employ them for up to 15% of their workforce. This is an increase from the previous cap of 10%.


The policy change will apply only to rural employers in provinces and territories that decide to participate. Authorities have not yet announced which provinces and territories will be included.

The previous restriction was introduced in August 2024 when ESDC limited employers to hiring a maximum of 10% of their workforce through the low-wage stream of the TFWP. The restriction aimed to prevent employers from relying too heavily on foreign workers.

Officials said the temporary change is intended to help rural communities deal with ongoing labour shortages. Smaller and less populated regions often face greater challenges in attracting workers.

Conditions under the work permit program

The Canadian government said the measure is part of efforts to work with provinces and territories and align immigration policies with local workforce needs.

Canada continues to maintain a moratorium on processing low-wage TFWP work permits in regions where the unemployment rate is above 6%. The list of such regions is updated every quarter.

The TFWP allows Canadian employers to hire foreign nationals when there are no suitable local workers available. Employers who want to hire through the program must apply for a Labour Market Impact Assessment (LMIA) through ESDC to determine whether hiring a foreign worker will have a positive, neutral or negative impact on Canada’s labour market.

The program has two main streams: high-wage and low-wage. A job falls under the low-wage stream when the hourly wage offered is below the wage threshold set by each province or territory.

Employers hiring workers through the low-wage stream must also meet additional requirements under the program.