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Rising Demand for Temporary Foreign Workers in Canadian Industries

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Temporary Foreign Workers in Canada: Trends and Insights:

Employment and Social Development Canada (ESDC) has highlighted a significant increase in the approval of Temporary Foreign Workers (TFWs) in Canada. The number of approved TFWs has doubled over the past five years, demonstrating the growing reliance on foreign labor to fill job vacancies.

Rising Numbers of Temporary Foreign Workers:

In 2023, employers received clearance to hire 239,646 TFWs, a significant jump from the 108,988 approved in 2018. This data only includes TFWs on closed work permits, requiring a Labor Market Impact Assessment (LMIA), and does not account for the additional foreign nationals on open work permits.

YearNumber of Approved TFWs
201690,314
201798,146
2018108,988
2019130,457
2020125,279
2021133,196
2022222,847
2023239,646

Growth Trends and the Impact of the Pandemic:

The upward trend in TFW approvals has been consistent since 2016, except for a brief dip in the pandemic. In 2016, employers were approved to hire 90,314 TFWs, a number that has steadily increased year over year.

Understanding the Data:

While the approval numbers have risen, it doesn’t necessarily mean more TFWs are working in Canada. Some employers may decide not to hire a TFW even after receiving approval. The data indicates many employers are seeking TFWs to address labor shortages.

Industry-Specific Increases:

These 10 industries have seen substantial increases in TFW approvals between 2018 and 2023. The table below outlines the top ten industries with the highest percentage increases:

OccupationNOC
2021 Code
Approvals in 2018Approvals in 2023Percentage Increase
Nurse aides, orderlies, and patient service associates33102162,51415,613%
Food counter attendants, kitchen helpers, and support652011708,3334,802%
Construction trades helpers and laborers751101325,3533,955%
Light duty cleaners653102013,0431,414%
Administrative assistants131102873,3371,063%
Retail sales supervisors620105702,999426%
Transport truck drivers733001,5847,297361%
Food service supervisors620202,35810,409341%
Cooks632003,16211,977279%
Fish and seafood plant workers941421,5564,529191%

Reasons Behind the Increase of Temporary Foreign Workers:

According to Immigration, Refugees and Citizenship Canada (IRCC), temporary residents made up 6.2% of Canada’s population in 2023, equating to 2.5 million people. This is a significant increase compared to the 924,850 non-permanent residents recorded in the 2021 Census.

The rise in TFW numbers is partly due to temporary measures introduced by the Canadian government during the pandemic. These measures included:

  • Allowing TFWs to continue travelling to Canada despite travel restrictions.
  • Extending the validity periods of some LMIAs.
  • Expediting the processing of specific TFWP applications.

Government Response and Future Outlook:

Employment Minister Randy Boissonnault observed that as the gap between unemployment and job vacancies narrows, the government is phasing out some pandemic-era measures.

In March 2023, the government announced new changes to the TFWP to stabilize the number of TFWs in Canada.

The rising number of TFW approvals reflects Canadian employers’ growing reliance on foreign labor to meet workforce demands. While the numbers show a significant upward trend, it is crucial to understand the broader context and implications of these changes on the labor market and immigration policies.

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