The Government of Canada says the number of temporary foreign worker (TFW) applications has fallen by 50 per cent since September 2024, when new rules were introduced to tighten access to the program and increase penalties for non-compliance.
According to Employment and Social Development Canada (ESDC), the federal government has collected nearly $4.9 million in fines over the past year, including the largest penalty ever issued under the TFW program. Bolero Shellfish Processing Inc. of New Brunswick was fined $1 million and banned from the program for 10 years on September 17.
The company was penalized for violating federal and provincial hiring laws, underpaying workers compared to the listed job offer, and failing to maintain a workplace free of physical, sexual, financial, and psychological abuse.
The significant decline in applications coincides with policy changes introduced in September 2024 that make it more difficult for employers to access the TFW program in regions with unemployment rates above six per cent. Under these rules, the federal government will refuse new TFW applications from employers in areas experiencing higher unemployment, a move aimed at encouraging the hiring of Canadians and permanent residents first.
Minister of Jobs and Families Patty Hajdu addressed the issue in the House of Commons last week, emphasizing that these measures are designed to protect workers from exploitation and ensure the program is used only where genuine labour shortages exist.
The changes come amid growing political pressure due to high national youth unemployment, which has sharpened scrutiny of employers using temporary foreign workers. The government reiterated that the TFW program represents about one per cent of Canada’s national workforce, but must operate with integrity and fairness.