Employers in Canada face new restrictions when hiring foreign workers through the country’s Temporary Foreign Worker Program, a policy shift the federal government expects will encourage businesses to hire workers already in Canada.

Effective Sept. 26, the government reversed two major changes made in 2022 to address labor shortages. Prime Minister Justin Trudeau announced the policy changes Aug. 26.

“The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles,” Randy Boissonnault minister of employment, workforce development and official languages said in a press statement. “Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy.”

The new rules reduce the amount of low-wage temporary foreign employees that businesses can hire to 10% from 20% for most sectors, the level it was before April 2022. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors — primary agriculture, food processing and fish processing as well as healthcare and construction.

The government of Canada will also refuse to process Labour Market Impact Assessments, the forms needed to hire a temporary foreign worker, for low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors — primary agriculture, food processing and fish processing as well as construction and healthcare — which will be permitted to keep a 20% cap.

The changes also reduce the maximum duration of employment for workers hired through the low-wage stream to one year from two years.

The Temporary Foreign Worker program was designed to address labor market shortages when qualified Canadians were not able to fill those roles, according to Boissonnault.

“Right now, we know that there are more Canadians qualified to fill open positions,” he said. “The changes we are making today will prioritize Canadian workers and ensures Canadians can trust the program is meeting the needs of our economy.”