Ottawa to Increase Temporary Foreign Worker Allocation for Rural Employers

The Canadian federal government announced Friday new measures to address persistent labour shortages in rural regions by allowing employers to increase the proportion of low-wage temporary foreign workers they can hire. The changes, effective April 1, 2026, through March 31, 2027, will raise the cap from 10 per cent to 15 per cent of a rural employer’s workforce.

Provinces and Territories Must Opt-In

For the increased allocation to accept effect, provinces and territories must formally opt-in to the program. According to the government, changes could be implemented within two weeks of a positive request from a province or territory. CBC News reports that the government believes these measures are necessary to support businesses struggling to find workers in specific areas of the country.

Government Cites Labour Shortages

Jobs and Families Minister Patty Hajdu stated that while Canadians should be prioritized for available jobs, “in some rural regions employers are facing persistent labour shortages.”

Existing Exemptions Remain

The government clarified that pre-existing sector-specific exemptions to the number of allowable low-wage temporary foreign workers will not be altered. These sectors include health care, construction and food processing, which have consistently faced chronic labour shortages. The Globe and Mail

Industry Response

Several business advocacy groups have welcomed the announcement. Dan Kelly, president of the Canadian Federation of Independent Business, urged “all provinces to request these new flexibilities for employers in their jurisdictions.” Kelly Higginson, president and CEO of Restaurants Canada, called the measures “a step in the right direction” to address labour shortages in the restaurant industry and requested that provinces and territories prioritize the foodservice industry in affected regions.

Opposition Concerns

Conservative Leader Pierre Poilievre has been critical of the Temporary Foreign Worker Program, calling for its abolition. He argues that the program has saturated the market with cheap labour, making it difficult for young Canadians to find employment. His office did not immediately comment on the latest announcement.

Current Workers Retained

Rural employers will also be able to retain any temporary foreign workers currently on staff under the new measures.