The Temporary Foreign Worker Program: Fact, Fiction, and What’s Missing

In response, the Canadian Federation of Independent Business (CFIB), who represent over 100,000 small and medium sized business owners, published an article aiming to separate myth from reality. Their piece, Why Small Businesses Need the Temporary Foreign Worker Program, explores several misconceptions about how the program operates and why, despite its flaws, it remains vital for many small businesses across the country. 

Here’s a look at the five myths CFIB addressed, and what they say the realities are. 

Myths vs Realities 

Myth 1: Canadian businesses are “addicted” to hiring temporary foreign workers  

Reality: Small business owners hire TFWs out of necessity, not convenience.
Foreign workers admitted under the TFWP represent less than 1% of Canada’s total labour force. Employers generally prefer to hire locally but struggle to find enough qualified candidates. In fact, 42% of small businesses cite labour shortages as their second-largest constraint on growth. 

Myth 2: Temporary foreign workers are stealing Canadian jobs 

Reality: TFWs fill critical labour gaps — they don’t take jobs away from Canadians. To receive a positive Labour Market Impact Assessment (LMIA), employers must show there are no qualified Canadians available for the role. Without access to the program, 1 in 5 businesses say they’d likely close, 24% would cut hours, and over half would be unable to meet customer demand, all outcomes that would actually reduce employment for Canadians. 

Myth 3: Temporary foreign workers are cheap labour 

Reality: Hiring a TFW is expensive, and wages are comparable to those of Canadians. Employers often pay thousands in processing, recruitment, housing, travel, and health insurance costs. According to Employment and Social Development Canada, 85% of TFWs earn the same wages as Canadians, and just 3.5% earn slightly less. There’s no national evidence of wage suppression linked to the program. 

Myth 4: Temporary foreign workers strain Canada’s public services 

Reality: TFWs help ensure Canadians can access essential goods and services. CFIB found that 76% of small and medium-sized enterprises (SMEs) using the TFWP said it allowed them to meet customer demand. These workers help build homes, grow and deliver food, and provide care to children and seniors, roles that keep communities running smoothly, especially in rural and high-demand regions. 

Myth 5: The TFWP facilitates worker abuse 

Reality: The vast majority of employers comply with labour standards, and the TFWP has strong enforcement mechanisms. Canada’s Labour Code and Employer Compliance Regime safeguard TFWs’ rights. In 2024–2025, 90% of employers were compliant with TFWP requirements. 

Interestingly, CFIB didn’t mention another common claim — that temporary foreign workers are driving up youth unemployment. This idea has already been debunked by many sources.  

CFIB’s Immigration Levels Plan Submission 

The CFIB also shared its submission for the federal government’s 2026–2028 Immigration Levels Plan. Drawing on feedback from its members, the goal is to share what small businesses are experiencing and help influence how the next plan is developed. 

Within this submission, CFIB outlines several key recommendations: 

Help employers retain existing foreign workers 

CFIB encourages the federal government to advance facilitative measures that would enable employers to retain their existing foreign workers — employees they’ve already trained and integrated into their operations — by: 

• Grandfathering all existing foreign workers in Canada, allowing employers to extend their work permits under previous rules (e.g., old caps, past prevailing wage thresholds, no “refusal to process” restrictions). 

• Prioritizing and increasing space for economic immigrants who are already in Canada. 

• Introducing a new stream for foreign workers with at least 18 months of Canadian work experience at any TEER level, provided they have valid status and have been declaring and paying taxes in Canada. 

• This would ensure that workers of all skill levels have a fair opportunity to remain in Canada. 

• Notably, over 60% of respondents to CFIB’s February 2023 Your Voice survey supported expanding permanent residence pathways to include more lower-skilled, lower-wage earners, while only 17% opposed it. 

Align immigration programs with real labour needs 

CFIB calls on the federal government to ensure that Canada’s immigration system better reflects the labour needs of all sectors and regions by: 

• Allocating more immigration spaces to economic streams such as the Provincial Nominee Program (PNP), Rural Communities Immigration Pilot (RCIP), and Atlantic Immigration Program (AIP) — programs where employers play a major role in supporting applications for permanent residence. 

• CFIB notes that several of these programs closed intake earlier than usual this year due to higher demand and limited quotas. 

• A significant portion of allocations went to government-dominated sectors (like health care), leaving fewer opportunities for private businesses. 

• They recommend splitting provincial allocations into two streams — one for public-sector priorities (health and education, including private providers) and another for private-sector labour needs — to avoid crowding out small business demand. 

• Allowing employers to make their case for the temporary foreign workers they need. CFIB argues that current policies — such as TFWP caps, refusal-to-process rules, and the 20% prevailing wage increase — prevent employers from demonstrating how foreign workers could be a net benefit to the Canadian economy. 

• As CFIB puts it, government policy should not presume that a worker from Montreal would relocate to Mirabel or Oka to take a job, or that everyone unemployed is actively seeking work in the sectors facing the most acute shortages. 

Optimize talent already in Canada 

CFIB also recommends making better use of temporary residents who are already in the country. 

• If someone has been in Canada for more than six months — such as a spouse, super visa holder, asylum claimant, or international student — they should be allowed to participate more fully in the labour force. 

• This could include allowing students to work more hours, or enabling temporary workers to hold multi-employer or multiple work permits for greater flexibility. 

Cut red tape 

Finally, CFIB recommends reducing administrative burden by reintroducing two-year work permits for low-wage workers. This would ease the paperwork load for both employers and employees while improving job stability.

The CFIB’s recent analysis helps cut through the noise surrounding the Temporary Foreign Worker Program. While no one disputes that the program can be improved, it’s also clear that it remains a lifeline for small businesses struggling to find the workers they need. 

Yes, there are always a few who misuse the system, but they are the exception, not the rule. It would be shortsighted to jeopardize a program that supports local economies and keeps thousands of Canadians employed because of the actions of a small minority. 

Canada’s economy depends on balance. Protecting opportunities for Canadians while ensuring employers can fill real and persistent labour shortages. The CFIB’s recommendations on the upcoming 2026–2028 Immigration Levels Plan underscore this need for balance: keeping trained workers, cutting red tape, and aligning immigration policy with actual labour market realities. 

Ultimately, the goal shouldn’t be to scale the program back. It should be to strengthen it. With smart policy and fair oversight, the TFWP can continue to serve both Canadian employers and the foreign workers who help keep our communities running.