By Steven Sukkau | Winnipeg Sun
A new report from the Canadian Federation of Independent Business (CFIB) is pushing back against what it calls “misguided narratives” surrounding Canada’s Temporary Foreign Worker Program (TFWP), arguing that recent federal restrictions are making it harder for small businesses to survive amid persistent labour shortages.
CFIB’s latest research snapshot, Temporary Foreign Workers in Canada: Myths vs Realities, challenges five of the most common misconceptions about the program, including claims that employers are “addicted” to hiring foreign workers, that TFWs take jobs from Canadians, depress wages, strain local housing markets, or are widely abused.
“The narrative around the temporary foreign worker program has totally lost the plot over the past few months,” said Dan Kelly, CFIB president. “Vilifying the businesses that need TFWs to fill positions that Canadians don’t want does nothing to address program gaps or the real issues weighing down our economy.”
The CFIB says the TFWP represents less than one per cent of Canada’s total labour force, yet has become a political lightning rod. Many employers, it notes, turn to the program only after exhausting local recruitment efforts, a process that involves costly and time-consuming Labour Market Impact Assessments (LMIAs), advertising requirements, and compliance audits.
Ottawa introduced new limits to the TFWP in 2024, capping low-wage positions held by foreign workers at 10 per cent and restricting applications in regions with unemployment rates above six per cent. CFIB argues these changes hit small businesses especially hard.
According to the report, over half (52%) of small business owners using the TFWP said that access to temporary foreign workers helped them keep Canadians employed. Nearly three-quarters (74%) warned that it would be “very difficult” to replace their TFW staff with Canadian workers.
“Simply scrapping or restricting the program won’t solve Canada’s labour market challenges,” said Christina Santini, CFIB’s director of national affairs. “We need a sustainable approach that takes small business realities into account.”
The federation points to sectors like agriculture, manufacturing, and hospitality, where employers say domestic labour shortages have persisted for decades. In many rural and remote communities, CFIB found, temporary foreign workers are essential to keeping operations running.
CFIB’s 40-page report dissects several popular assumptions:
- Myth 1: Employers are addicted to TFWs. In reality, only 13 per cent of small businesses facing shortages tried to use the TFWP between 2019 and 2021, and the process remains tightly regulated and expensive.
- Myth 2: TFWs steal Canadian jobs. Nearly 90 per cent of employers said access to TFWs helped them stay in business, while 20 per cent said hiring TFWs allowed them to hire more Canadians.
- Myth 3: TFWs suppress wages. The CFIB notes that 85 per cent of TFWs earn the same wage as Canadians, and program rules require employers to pay at or above prevailing market rates.
- Myth 4: TFWs strain housing. Many TFWs live in employer-provided housing, particularly in rural areas, and are actively helping to ease housing supply issues by working in construction and manufacturing.
- Myth 5: Abuse is widespread. CFIB says the majority of employers comply with Canada’s strict labour and immigration rules. In 2024–25, 90 per cent of employers were found compliant under the federal inspection regime.
To keep small businesses afloat and maintain essential supply chains, CFIB is urging Ottawa to retain a focused and flexible TFW program, rather than further restrict it. Its key recommendations include rejecting misinformation and publicly clarifying how the TFWP protects Canadian jobs.
The CFIB also recommends allowing employers to make their case for why a Canadian worker cannot be hired instead of issuing blanket application refusals. The organization also urges the federal government to create a pathway to permanent residency for lower-skilled temporary foreign workers who have maintained legal status and contributed to the economy. Additionally, CFIB is asking for reduced red tape, including the restoration of a two-year employment duration for low-wage positions to provide greater stability, and for meaningful consultation with employers and industry groups before any future reforms are introduced.
The report concludes that Canada’s temporary workers are not a threat but an asset, helping to stabilize key industries and fill chronic labour gaps. Nearly half of all new economic immigrants now have prior temporary work experience in Canada, underscoring the program’s role as a bridge to permanent settlement.
“Without a balanced and evidence-based approach,” CFIB warns, “Canada risks hurting the very small businesses that keep our communities fed, housed, and employed.”
