Temporary Foreign Worker Program

Temporary Foreign Worker Program in Canada – Myths, Realities, and Why Small Businesses Rely on It

For years, the Temporary Foreign Worker Program has been at the center of public debate in Canada. Some view it as a necessary labour tool, while others see it as controversial. The truth sits somewhere more practical: the program fills real labour gaps when employers simply cannot find workers locally, especially in rural areas, seasonal industries, and specialized sectors. Today, many small and medium-sized businesses depend on this pathway not because it is the easiest option, but because it is often the only option that allows them to keep operating and continue serving their communities.

Why the Temporary Foreign Worker Program Exists

Canada’s labour market is diverse. Some industries grow faster than the local workforce can supply. Examples include:

SectorCommon Roles Filled Through TFWPWhy Workers Are Needed
AgricultureGeneral farm workers, operatorsSeasonal work and rural locations
Hospitality & ServiceCooks, cleaners, serversHigh turnover and shortage of applicants
ManufacturingLabourers, machine operatorsShift-based and skilled manual labour
Healthcare & CaregivingSupport workers, caregiversAging population and growing care needs

Many Canadian employers, particularly in remote or small communities, report difficulty attracting applicants even when they offer competitive wages. The Temporary Foreign Worker Program becomes a structured support system that prevents service gaps and business closures.

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Myths About the Temporary Foreign Worker Program

There are several misconceptions surrounding the program. Let’s clarify the facts clearly and simply:

MythReality
Businesses prefer hiring foreign workers.Employers hire internationally only when no Canadian applicants are available.
Temporary foreign workers take jobs away from Canadians.They fill labour shortages in roles that repeatedly go unfilled by local workers.
TFWs are cheap labour.Hiring through TFWP is expensive, and wages must match or exceed local median wages.
TFWs add pressure to public services.They help sustain the very services and industries Canadians rely on daily.

In fact, hiring a single worker through the program can cost employers around $10,000 in recruitment, permits, transportation, and onboarding. If local workers are available, employers always hire locally; it is faster, simpler, and far more cost-effective.

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How the TFWP Protects Both Workers and the Labour Market

The government has built several safeguards into the program:

  • Wage rates must be equal to or higher than the regional median wage.
  • Employers are regularly inspected for labour standards.
  • Abuse and non-compliance can result in penalties and bans.
  • Low-wage hiring caps limit how many roles can be filled through the program.
  • Employers must first prove they tried to hire locally through a Labour Market Impact Assessment (LMIA).

These measures aim to prevent exploitation and ensure foreign workers are treated fairly while also protecting local job applicants.

Why Small Businesses Depend on the TFWP

Small businesses in Canada make up over 98% of all businesses. Many of them operate in regions where the population is small and seasonal labour shortages are common. For these employers:

  • If positions remain unfilled, production stops.
  • If production stops, services decline.
  • If services decline, communities suffer.
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The Temporary Foreign Worker Program helps keep essential services running from food production to elder care to hospitality services that support local tourism economies.

A Balanced and Practical Program

The Temporary Foreign Worker Program is not a replacement for Canadian workers — it is a carefully regulated tool that supports industries facing genuine labour shortages. While improvements are always ongoing, removing or restricting the program would harm small businesses, reduce services in rural areas, and impact the daily lives of Canadians.

A balanced approach ensures that:

  • Workers are protected
  • Local employment remains a priority
  • Businesses can continue to operate and grow

Canada’s labour market thrives when practical solutions meet real needs and the TFWP remains one of those solutions. Stay connected with ImmigCanada for more insights into how Canada’s labour and immigration policies continue to support economic growth across the country.

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