Canada is tightening the rules for foreign workers, a move that has left many skilled professionals uncertain about their future in the country. Prime Minister Mark Carney announced that the Temporary Foreign Worker Program will be refocused on specific sectors and regions, aiming to reduce strain on housing, infrastructure, and social services.

Speaking to his party caucus, Carney emphasized the need for a “focused approach” that aligns temporary foreign labour with genuine market demands. He also outlined a broader goal: lowering the share of non-permanent residents from roughly 7% of the population to 5% by the end of 2027 — a change that would shrink the pool of temporary workers if implemented.

Impact on professionals and businesses

While full policy details are yet to be released, experts anticipate tighter Labour Market Impact Assessment (LMIA) rules, stricter documentation requirements, and limits on the types of roles and regions eligible for foreign labour. Employers, from tech firms to healthcare providers, warn that abrupt restrictions could stall projects, slow economic growth, and exacerbate talent shortages in high-demand sectors.

Industry groups acknowledge the need to manage temporary labour responsibly but stress that Canada still depends on skilled migrants to fill genuine gaps. Critics argue the current system can suppress wages and place undue pressure on local services, highlighting the delicate balance Ottawa must strike.

Government rationale and next steps

Carney framed the reforms as a measured approach to immigration management—targeting sectors and regions with clear demand while reducing reliance on temporary hires. Policy consultations with provinces, employers, and settlement agencies are expected this autumn, paving the way for the implementation of the revised framework.

For foreign professionals—from healthcare workers to IT specialists—the announcement has triggered uncertainty over visas, renewals, and long-term prospects. Employers and advocacy groups are urging the government to ensure smoother pathways to permanent residency for high-demand talent, cautioning that Canada risks losing valuable skills if the transition is too abrupt.