Canada’s economy depends on a strong and diverse workforce. As many industries continue to face labor shortages, the Temporary Foreign Worker Program (TFWP) has become an essential tool for employers seeking to fill critical gaps while remaining compliant with Canadian immigration laws.
Despite its importance, misconceptions about the program persist. Below, we address some of the most common myths and highlight the realities behind them.
Myth 1: Canadian Businesses Are “Addicted” to Hiring Foreign Workers
Fact: Employers turn to the TFWP out of necessity, not convenience.
Most small and medium-sized businesses prefer to hire locally, but skill shortages make it difficult to find qualified Canadian workers. Foreign workers under the TFWP represent less than one percent of Canada’s total workforce. Many employers spend considerable time and resources recruiting within Canada before applying for temporary foreign talent.
Myth 2: Temporary Foreign Workers Take Jobs Away from Canadians
Fact: The program complements Canadian labor rather than replacing it.
Before hiring a foreign worker, employers must secure a Labour Market Impact Assessment (LMIA) proving that no Canadian citizen or permanent resident is available for the position. Without access to foreign labor, many small businesses would face reduced hours or closure—potentially leading to job losses for Canadians.
Myth 3: Foreign Workers Are Paid Less or Drive Down Wages
Fact: Hiring a foreign worker is costly, and wages are comparable to those of Canadians.
Employers must pay application fees, recruitment expenses, travel costs, health insurance, and housing. Studies consistently show that most temporary foreign workers receive the same or higher pay than Canadian workers in similar roles.
Myth 4: Temporary Foreign Workers Burden Canada’s Social Systems
Fact: Foreign workers sustain industries that Canadians rely on.
They fill crucial gaps in agriculture, food production, healthcare, construction, and caregiving. Their efforts ensure that Canadians continue to have access to essential goods and services, especially in rural and underserved regions.
Myth 5: The Program Facilitates Worker Exploitation
Fact: Canada enforces strong compliance and accountability measures.
The TFWP has robust safeguards that protect all workers’ rights. Over 90% of employers comply with the program’s regulations, and those who fail to meet standards face severe penalties, including suspension from the program.
A Balanced Perspective
While improvements to the system are always possible, the Temporary Foreign Worker Program remains a vital bridge between employer needs and workforce realities. It strengthens Canada’s economy, supports community growth, and provides skilled individuals with opportunities to contribute meaningfully to the country’s success.
FAQ – Temporary Foreign Worker Program (TFWP)
Q1: What is the Temporary Foreign Worker Program (TFWP)?
The TFWP allows Canadian employers to hire foreign nationals temporarily when no qualified Canadians are available for specific jobs.
Q2: Do employers need government approval before hiring a foreign worker?
Yes. Employers must obtain a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC) showing that hiring a foreign worker will not negatively affect the Canadian labor market.
Q3: Can temporary foreign workers apply for permanent residence in Canada?
In many cases, yes. Certain streams of the Provincial Nominee Program (PNP) and the Canadian Experience Class (CEC) under Express Entry allow temporary foreign workers to transition to permanent residency.
Q4: What are employers’ responsibilities under the TFWP?
Employers must pay fair wages, maintain safe working conditions, and follow all federal and provincial labor standards. Non-compliance can result in penalties or permanent bans from the program.
Q5: Why is the TFWP important for Canada’s economy?
The program helps fill persistent labor shortages, keeps businesses operating efficiently, and supports industries that are essential to everyday life across Canada.
This article was informed in part by insights from the Canadian Federation of Independent Business (CFIB), a non-profit organization that advocates for small and medium-sized businesses across Canada.
Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.