Canadian Chamber Seeks Meticulous Review of Temporary Worker Program

The Canadian Chamber of Commerce is urging a “meticulous review” of the entire Temporary Foreign Worker Program as political pressure mounts to curb the number of temporary workers and address concerns tied to youth unemployment and program abuses. In a letter sent to the federal employment and immigration ministers in September 2025, the Chamber asked Ottawa to conduct a thorough, data-driven assessment of both the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP), calling for better transparency, stronger safeguards, and clearer evidence on where and why employers rely on foreign labor.

At the heart of the Chamber’s message is a challenge to a growing political narrative. While critics—led by the Conservative Party—claim the TFWP fuels joblessness among young Canadians and enables exploitation, the Chamber argues the link between high youth unemployment and the presence of temporary foreign workers is generally weak. It notes that youth aged 15 to 24 usually do not apply for the specific roles often filled under the TFWP, many of which are physically demanding, seasonal, or located in regions where local recruitment falls short.

Government policy has already shifted in response to political and public pressure. Ottawa has halted TFWP applications in 26 metropolitan areas with unemployment rates above 6% and is refusing to issue Labour Market Impact Assessments (LMIAs) in jurisdictions that exceed that benchmark. An LMIA is the government authorization an employer needs to hire through the TFWP, showing no Canadians are available to do the job.

According to analysis by VisaVerge.com, these suspensions mark a broader move to shrink temporary labor flows as part of a population and housing strategy, with ministers aiming to balance labor needs against pressures on hospitals, schools, and rental markets.

The Chamber, however, warns that blunt restrictions won’t fix structural issues. It calls for better data and monitoring across both streams—especially the IMP, which allows employers to hire without an LMIA. The letter points to a core oversight problem: limited ways to track how and where IMP workers are employed, which clouds policymaking and enforcement. Without clearer reporting, the government cannot distinguish between employers addressing genuine shortages and those misusing the system.

Policy context and data gaps

Between 2019 and 2024, the number of people in Canada on temporary work permits rose quickly. The TFWP grew by 96%, and the IMP expanded by 116%. Together, these streams accounted for about 1.55 million work permit holders in 2024—roughly 7.5% of the labour force.

In response, Ottawa has been tightening eligibility and lowering volumes to stabilize population growth and reduce pressure on housing and social services. The Chamber’s call for a meticulous review fits squarely into this broader recalibration.

Key elements the Chamber highlights:
– Strengthen the evidence base on program use, especially under the IMP.
– Keep targeted protections to address fraud, exploitation, and abuse.
– Align worker admissions with regional labour shortages and community capacity.
– Avoid policies based on assumptions about youth unemployment that aren’t supported by data.

The focal point is accuracy. The Chamber wants the government to:
– Measure sector-specific shortages more precisely.
– Disclose how many positions are being filled under each stream.
– Improve enforcement where risks are highest.

It stresses that rooting out abuse should happen alongside preserving access where Canadian employers face sustained shortages.

Legal and procedural architecture

Employers who need a foreign worker through the TFWP typically must:

1. Secure an LMIA from Employment and Social Development Canada.
2. Have the worker apply for a work permit with Immigration, Refugees and Citizenship Canada (IRCC), usually using form IMM 1295.

IRCC’s official guide for the Application for Work Permit Made Outside Canada (IMM 1295) is available on the Government of Canada website and explains documents, fees, and biometrics requirements. For program rules and employer obligations, the Government of Canada’s Temporary Foreign Worker Program page provides authoritative guidance on LMIA pathways, wage levels, and housing standards under specific streams, including agriculture and low-wage positions.

Official resources:
– Government of Canada — Temporary Foreign Worker Program overview: https://www.canada.ca/en/employment-social-development/services/foreign-workers.html
– IRCC — Application for a work permit outside Canada (IMM 1295): https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/application-work-permit-outside-canada.html

Implications for workers, employers, and youth

What happens next matters for employers who rely on seasonal harvests, fish processing, construction deadlines, and 24/7 care facilities. It also matters for international workers who depend on clear rules and safe workplaces.

The Chamber’s position tries to thread a needle: maintain access where it’s needed, close loopholes that invite abuse, and upgrade data systems so decisions reflect reality on the ground.

For employers:
– Expect tighter scrutiny in regions with unemployment above 6%.
– Prepare stronger recruitment records showing efforts to hire locally.
– Track worker conditions and compliance more closely, especially under the IMP, where oversight is thinner.
– Anticipate periodic caps or pauses as Ottawa aims to manage population and housing pressures.

For temporary workers:
– Clearer program rules and targeted enforcement should reduce vulnerability to fraud, unpaid overtime, and unsafe housing.
– A data-driven review could mean more predictable processing and improved access to recourse when problems arise.

For young Canadians:
– The Chamber’s stance suggests that reducing the TFWP won’t, by itself, lower youth unemployment if jobs, hours, or locations don’t align with youth preferences and skills.
– If the government pairs training and mobility supports with better labour matching, youth job prospects could improve without blunt cuts to the TFWP.

Political tensions and possible outcomes

The politics are fraught. Critics want sharp reductions and argue that high temporary admissions distort wages and strain services. Supporters counter that many sectors simply cannot function without timely access to foreign labour, especially in remote areas or during peak seasons.

The Chamber’s call tries to shift the conversation from blanket ceilings to targeted oversight—tight enough to catch fraud and exploitation, but flexible enough to meet real labour needs.

What would a meticulous review likely include?
– Map sector-by-sector shortages.
– Publish standardized data on LMIA and IMP usage.
– Strengthen on-site inspections in high-risk industries.
– Refine regional triggers tied to unemployment and housing capacity.
– Test whether current thresholds—like the 6% LMIA refusal rule—fit the different realities of small towns versus large cities.

The coming months will show whether ministers lean toward broad reductions or a more surgical approach. Either way, the scale of temporary work—now touching 1.55 million permit holders—demands firmer reporting lines and faster correction when problems surface.

The Chamber’s message is plain: don’t discard a tool that many employers say they need; rebuild it with better data, smarter guardrails, and measurable results.