Canada has announced targeted measures to assist rural employers in managing labour shortages while ensuring Canadians remain first in line for available jobs. These measures, which can be implemented as early as April 1, 2026, aim to support essential businesses and strengthen local economies in rural communities facing tight labour markets. Strong local businesses and a reliable workforce are essential for keeping rural economies growing and communities thriving across Canada.
Temporary Foreign Worker Program in Rural Areas
Some rural regions face acute labour shortages. In these areas, the Temporary Foreign Worker Program allows employers to hire foreign workers to fill critical short-term workforce gaps when qualified Canadians or permanent residents are not available. Workers hired through this program make up around 1 per cent of Canada’s workforce and support key sectors such as agriculture, food processing, construction, and health care.
Government Measures and Program Review
The government regularly reviews the program and has implemented tightening measures between October 2023 and November 2024. These measures included refusing low-wage positions in regions with unemployment above 6 per cent, lowering the cap on low-wage foreign workers from 20 per cent to 10 per cent of an employer’s workforce, and limiting work permits for low-wage workers to one year. According to The Honourable Patty Hajdu, minister of Jobs and Families, “Strong rural economies depend on local employers finding the workers they need. Canadians must always be first in line, but some rural regions face persistent labour shortages. These time-limited measures will help address urgent workforce gaps while prioritizing Canadian workers.”
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New Rules for Low-Wage Temporary Foreign Workers
Under the new rules, rural employers can maintain their current number of low-wage temporary foreign workers and temporarily raise the allowed share from 10 per cent to 15 per cent of their staff in eligible areas. Special rules for certain sectors remain unchanged. Employers in health care, construction, and food processing can hire only up to 20 per cent low-wage foreign workers. Seasonal industries, like fish processing and tourism, will continue with their existing exceptions.
Eligibility and Sector Exceptions
| Sector | Previous Low-Wage Cap | New Temporary Cap | Notes |
|---|---|---|---|
| General Rural Employers | 10% | 15% | Eligible rural areas only |
| Health Care | 20% | 20% | Cap remains unchanged |
| Construction | 20% | 20% | Cap remains unchanged |
| Food Processing | 20% | 20% | Cap remains unchanged |
| Seasonal Industries | Varies | Varies | Existing exceptions apply |
