A recently published report by Statistics Canada has revealed a steady shift in the landscape of temporary foreign workers in Canada, particularly those arriving from the United States. While Americans once made up a notable portion of Canada’s temporary labour force, the trend has seen a consistent decline over the last decade. Between 2010 and 2023, the number of U.S. citizens arriving in Canada on work permits has dropped by nearly 23,000. In contrast, non-citizen U.S. residents, such as international students or long-term U.S. visa holders, have seen a steady rise in Canadian work permit issuance, creating an intriguing contrast in North American migration patterns.
In 2013, the number of U.S. citizen workers in Canada peaked at over 70,000. Since then, however, there has been a noticeable decrease, reaching a low of approximately 36,500 in 2021. A modest recovery followed in 2022 and 2023, but the numbers have not returned to earlier highs. By 2023, the total number of U.S. citizens working in Canada temporarily stood at 38,867. That’s a drop of over 22,800 individuals compared to 2010. Meanwhile, non-citizen residents from the U.S.—those who are originally from other countries but reside in the U.S.—have risen from just 3,728 in 2010 to 17,353 in 2023, making up more than 30% of all U.S.-based temporary workers in Canada.
What’s Driving the Decline Among U.S. Citizens?
Several factors may explain why fewer U.S. citizens are taking up temporary employment in Canada. Historically, a significant portion of Americans entered Canada through international agreements, including NAFTA (now CUSMA), which facilitated easier cross-border movement for professionals. However, with changes in the North American economy, tech migration shifts, and tighter job market competition, the demand to cross borders may have declined.
Another possible explanation is that U.S. citizens who formerly sought international experience in Canada are now exploring opportunities elsewhere or remaining in the U.S. amid strong domestic job growth. At the same time, Canadian employers may be prioritizing recruitment from broader international pools that offer specialized skills and align better with labour shortages.
Interestingly, although fewer U.S. citizens are obtaining permits, those who do tend to work in highly skilled jobs. In 2023, 76% of U.S. citizen temporary workers in Canada were employed in managerial, professional, or technical roles, indicating that when Americans do come, they fill critical positions.
The Rise of U.S. Non-Citizen Residents in Canada’s Labour Market
In contrast to the downward trend among U.S. citizens, non-citizen residents from the U.S. are arriving in Canada in growing numbers. From 2010 to 2023, their presence multiplied nearly fivefold. The largest spikes were seen between 2016 and 2019 and then again after 2020. These individuals are typically international students, work visa holders, or immigrants residing in the U.S. who view Canada as a more accessible or attractive destination for employment.
One key reason for their increasing numbers lies in the flexibility of the International Mobility Program (IMP), which allows certain categories of workers to receive open work permits without needing a Labour Market Impact Assessment (LMIA). By 2022, nearly 89% of U.S. non-citizen residents who came to work in Canada were admitted under IMP streams, excluding international agreements. Just over 8% entered through the traditional Temporary Foreign Worker Program (TFWP).
This growing presence suggests that Canada’s open policies, particularly for spouses of skilled workers and recent graduates, are offering easier routes for non-citizen residents to enter and work legally in Canada.
Overall, U.S. Worker Presence Is Shrinking
When combining the total number of U.S. citizens and non-citizen residents working temporarily in Canada, the data reveals a broader downward trend. In 2010, there were more than 65,000 temporary workers from the U.S. in Canada. This number climbed slightly to over 77,000 in 2013—the highest recorded—before falling to just over 56,000 by 2023. This represents a drop of over 9,200 workers across the timeframe.
As a share of Canada’s overall temporary foreign worker population, Americans once represented a sizeable group. In 2010, they made up 16.6% of all temporary foreign workers in the country. But by 2023, that figure had dropped to only 4%. Meanwhile, Canada has seen a sharp increase in work permit holders from other nations, with the total number of non-U.S. temporary workers more than doubling from 329,000 in 2010 to 848,100 in 2022.
How Work Permit Streams Differ by Nationality
A comparison of program usage also highlights how temporary workers from the U.S. differ from others. Nearly half of all U.S. citizen workers used international agreements under the IMP to secure their permits, especially between 2010 and 2019. In contrast, workers from other countries predominantly entered under general IMP categories or through the TFWP.
By 2022, only 5% of U.S. citizens used the TFWP, while nearly 48% entered through other IMP categories. U.S. non-citizen residents followed a similar path, with almost 90% using general IMP categories and only 8% entering through the TFWP. Workers from countries other than the U.S. relied more evenly on both programs but increasingly favored the IMP, with over 76% entering via non-agreement IMP categories by 2022.
Occupations, Earnings, and Industry Profiles
Not only do U.S. workers differ by how they enter Canada, but also by where they work and how much they earn. In 2023, 76% of U.S. citizen temporary workers held jobs in high-skilled sectors, compared to 67% among their non-citizen counterparts. However, non-citizen residents had higher earnings. In 2022, their median full-year equivalent income stood at $107,600, compared to $75,900 for U.S. citizens and just $42,500 for temporary foreign workers from other countries.
Industrial placement also reveals differences. Over half of U.S. non-citizen workers with T4 earnings were employed in professional, scientific, and technical services. U.S. citizens with T4 earnings were more evenly spread, with around one-third working in professional services and education. Workers from other nations, by contrast, were more commonly employed in agriculture, wholesale trade, and retail sectors that typically offer lower pay.
Final Thoughts: What the Data Means for Immigration Stakeholders
The trends surrounding temporary foreign workers from the U.S. in Canada reflect broader shifts in global mobility, immigration policy, and labour market needs. While U.S. citizens are gradually stepping back from Canada’s work permit system, non-citizen residents from the U.S. are increasingly filling that gap, often entering through more flexible immigration channels.
These insights are valuable for employers, policymakers, and prospective applicants. Employers seeking U.S.-based talent may benefit from focusing recruitment on non-citizen residents who are more likely to access Canada’s labour market through open or IMP-based work permits. At the same time, these trends highlight Canada’s growing reliance on a diverse and global workforce, one that extends well beyond its North American neighbour.
The decrease in temporary foreign workers from the U.S. in Canada is part of a broader evolution, but the door remains open, especially for those with the skills, experience, and flexibility to adapt to modern immigration pathways.
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