The federal government says applications to the Temporary Foreign Worker (TFW) Program have dropped significantly following recent efforts to reduce employer reliance on the initiative.
In a statement released recently, Employment and Social Development Canada (ESDC) said that overall applications to the program declined by 50 per cent, with the low-wage stream seeing a 70 per cent drop. The measures were implemented in response to a tightening labour market in September 2024.
“The Temporary Foreign Worker Program is a last resort option for employers who cannot find qualified Canadians and permanent residents to fill job vacancies,” the department said.
According to the federal government, the program represents about one per cent of the national workforce and is mainly used in sectors such as agriculture, food processing, construction and health care. Employers are required to show that they made genuine attempts to hire from within Canada before applying, and they must continue recruiting while the application is pending.
In addition to reducing applications, the government also reported increased enforcement and penalties for employers found violating program conditions.
In the 2024–2025 fiscal year, ESDC conducted 1,435 employer compliance inspections. Ten per cent of employers were found non-compliant. During the same period, penalties issued more than doubled, rising from $2,067,750 to $4,882,500. Thirty-six employers were banned from the program — a threefold increase compared to the previous year.
Employers who violate the terms of the program can face administrative monetary penalties of up to $1 million per year and be temporarily or permanently banned from hiring temporary foreign workers.
From April 1, 2024, to March 31, 2025, notable violations included:
- An agriculture employer fined $212,000 and banned for two years for failing to provide proper working conditions and required documentation.
- A residential construction employer fined $161,000 and banned for five years for inadequate wages, poor working conditions and non-compliance with labour laws.
- A long-haul trucking company fined $150,000 for not operating a genuine business and failing to provide required documentation.
- A fish and seafood sector employer fined $1 million and banned for 10 years — the largest penalty to date — for failing to provide fair wages, adequate working conditions and a workplace free of abuse.
“Employers who are found to be non-compliant with TFW Program conditions are also listed on a public-facing website managed by Immigration, Refugees and Citizenship Canada,” the release stated.
The government says ongoing improvements to the program will focus on specific strategic sectors and regional needs.

“Building a stronger Canada means protecting those who work tirelessly, day in and day out,” said Minister of Jobs and Families Patty Hajdu, who is also responsible for the Federal Economic Development Agency for Northern Ontario.
“Workers in Canada deserve safe workplaces where their rights are protected from bad actors. The TFW Program is a last resort measure for businesses — it is no substitute for Canadian talent, and its misuse will never be permitted,” Hajdu said.
“Strengthening our inspection practices to weed out employers who misuse the program puts workers at the forefront and safeguards their well-being while we build, together, one Canadian economy that will benefit all generations.”
More from Retail Insider:














This program is infuriating working Canadians, it should be ended immediately. No wonder people can’t get jobs.