Canada Eases Temporary Foreign Worker Program Rules for Rural Areas: Employers Allowed to Increase Foreign Worker Cap to 15%
Ngày 13/03/2026, Chính phủ Canada công bố một biện pháp mới nhằm hỗ trợ các doanh nghiệp tại khu vực nông thôn đang đối mặt với tình trạng thiếu lao động nghiêm trọng. Thông báo này liên quan trực tiếp đến chương trình tuyển dụng lao động nước ngoài tạm thời của Canada – Temporary Foreign Worker Program.
This article will explain the entire content of the announcement, the important changes, the significance of the policy, and the terminology that readers need to know to understand the impact of this decision.

Temporary Foreign Worker Program là gì?
The Temporary Foreign Worker Program (TFW Program) is a program that allows Canadian businesses to hire temporary foreign workers when they are unable to find a suitable Canadian or permanent resident for the position.
Chương trình này được quản lý bởi Employment and Social Development Canada.
Some key points of the program:
- Businesses must demonstrate that they made an attempt to recruit Canadians first.
- An LMIA must be obtained before hiring foreign workers.
- Foreign workers are only recruited when there is a genuine labor shortage in the market.
According to Canadian government figures, workers under this program account for only about 1% of Canada's total workforce.
Why does Canada need to introduce new measures?
In recent years, the Canadian government has tightened the TFW program in an effort to reduce its reliance on foreign labor.
Measures to be implemented from 2023–2024 include:
- Reduce the proportion of low-wage foreign workers from 20% to 10%.
- Reduce the work permit duration for low-wage workers to one year.
- Reject LMIA applications for low-wage jobs in cities with unemployment rates of 6% or higher.
However, these changes have created significant difficulties for many rural areas.
In many rural areas of Canada:
- Low population
- Limited workforce
- Workers find it difficult to travel to remote areas.
Therefore, many businesses are unable to recruit enough staff to remain operational.
The latest changes from the Canadian government in 2026.
To address the labor shortage in rural areas, the Canadian government has announced a temporary measure under the Temporary Foreign Worker Program.
1. Increase the proportion of low-wage foreign workers.
Eligible businesses in rural areas can:
- Increase the proportion of low-wage TFW workers from 10% to 15% of the total workforce.
- For example: The total number of employees is 100. Under the old regulations, the company could hire a maximum of 10 Team Leaders (TFWs). Following this announcement, the company can hire a maximum of 15 TFWs (after the request is approved by the Federal government).
2. Businesses are allowed to retain their current TFW workforce.
Many rural businesses are currently using TFW (Total Workforce) labor exceeding 10% because they are still using labor under the old regulations (20%) from the year before.
The new policy allows them to retain their current workforce, instead of having to reduce it as per the old regulations.
This helps avoid the following situation:
- lack of staff
- production interruption
- Close down local businesses.
3. This policy does not automatically apply across Canada.
One important point in the announcement is:
This policy only applies when a province or territory requests it from the federal government.
The process typically unfolds as follows:
- Local businesses report labor shortages.
- The provincial government assesses the labor market.
- The province submits a request to the federal government.
- The Canadian government approved its application for that area.
Once approved, the policy could take effect within approximately two weeks.
4. Policy implementation period
This measure is only temporary:
- It could start from April 1, 2026.
- Ends on March 31, 2027
After this period, the Canadian government may:
- extended
- adjust
- or terminate the policy.
Some industries have their own regulations.
Some essential Canadian occupations still have different limits within the Temporary Foreign Worker Program.
The industry has a 20% limit.
The following sectors are permitted to employ a maximum of 20% low-wage foreign workers:
- health care
- build
- Food processing.
These sectors often have difficulty recruiting domestic workers, so the government allows a higher percentage.
Seasonal industries are exempt from restrictions.
Seasonal industries are still eligible for exceptions, including:
- processing fish and seafood
- tourism.
Seasonal jobs in these industries are not subject to TFW (Time-of-Work) rates.
Key terms
What is LMIA?
A Labour Market Impact Assessment (LMIA) is a permit that businesses must obtain before hiring foreign workers.
The purpose of an LMIA is to confirm that:
- Businesses are unable to find suitable Canadian workers.
- The hiring of foreign workers does not negatively impact the Canadian labor market.
If the LMIA is approved, the foreign worker can then apply for a work permit to work in Canada.
What is low-wage labor?
In the TFW program:
- A low-wage worker is a worker whose salary is below the provincial average.
These positions are typically found in industries such as:
- restaurant
- hotel
- manufacture
- agriculture
- service
The significance of the new policy
The announcement from the Canadian government carries significant implications.
1. Supporting the rural economy
Businesses in rural areas often face difficulties in recruitment.
This policy helps them:
- keep active
- avoid lack of manpower
- Maintain local economic stability.
2. Canadian workers remain a priority.
Despite relaxing regulations, the government still emphasizes that:
Canadians and permanent residents should always be given priority in employment.
Businesses still have to:
- Apply for jobs domestically
- demonstrate labor shortage
- Please provide an LMIA.
3. There's no need to open the doors to recruit foreign workers en masse.
This policy is not a large-scale program for foreign workers.
The main objective is:
- supporting rural areas facing labor shortages.
- Maintain the stability of local businesses.
Conclusion
The Canadian government's recent announcement regarding the Temporary Foreign Worker Program demonstrates a more flexible approach to the rural labor market.
Summary of key points:
- Increase the proportion of eligible low-wage TFW workers from 10% to 15% in rural areas.
- Businesses can retain existing TFW workers.
- This policy only applies when the province requests it from the federal government.
- Effective from April 1, 2026 to March 31, 2027
- Businesses still need to apply for LMIA and prioritize Canadian workers.
This measure is expected to help rural businesses stay afloat and support local economic growth, while also ensuring the balance of the Canadian labor market.