Title: Temporary Worker Applications Decline Amid Increased Fines

OTTAWA — The Canadian government has reported a significant drop in applications for temporary foreign worker permits, coinciding with nearly $5 million in fines issued to companies for non-compliance with program regulations. According to a recent report from Employment and Social Development Canada, the number of applications halved after new rules were implemented last year, which made it more challenging to obtain these permits.

The report highlights a staggering 70% decrease in applications for low-wage stream temporary workers. The temporary foreign worker program is divided into two streams: low-wage and high-wage, based on whether jobs pay below or above the provincial median income.

In the 2024-25 fiscal year, the government collected approximately $4.9 million in fines for violations, a sharp increase from $2 million in the previous year. Notably, Bolero Shellfish Processing Inc. in New Brunswick received the maximum fine of $1 million and was banned from the program for ten years due to multiple infractions, including underpayment and failure to maintain a safe workplace.

The new regulations, which took effect last September, stipulate that applications to hire temporary foreign workers will be denied in any metropolitan area where the unemployment rate exceeds 6%. However, exceptions exist for specific sectors such as agriculture, construction, and healthcare, as well as for jobs lasting less than 120 days.

Additionally, the rules restrict employers to hiring low-wage temporary workers at a maximum of 10% of their workforce, or 20% in certain sectors like healthcare and food manufacturing. Since the beginning of September 2024, about 260 fines for non-compliance have been publicly posted, with approximately 44% of these fines resulting from employers failing to provide necessary documentation to inspectors.

The rising youth unemployment rate in Canada has intensified scrutiny of the temporary foreign worker program, which the government states represents only about 1% of the national workforce. In response to these concerns, the Conservative Party has begun advocating for the program's termination.

This report was first published on October 6, 2025.