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Which industries and job types are most commonly supported by the Temporary Foreign Worker Program versus the Immigrant Wage Subsidy?

Checked on November 18, 2025
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Executive summary

The Temporary Foreign Worker Program (TFWP) is chiefly used by employers to fill temporary gaps across low‑wage and high‑wage streams in sectors like agriculture, food service, retail and some skilled trades and professional roles; federal reforms since 2024 raised wage floors and capped low‑wage placements to curb reliance on low‑paid TFWs [1] [2]. Wage‑subsidy programs exist across federal and provincial portfolios (for example Student Work Placement or Foreign Credential Recognition initiatives) but those subsidies are program‑specific, aimed at training or credential integration and are available to citizens and newcomers alike — claims of a broad, dedicated “30% kickback” for hiring migrants are misleading [3] [4].

1. TFWP is a toolkit for many industries, not a single‑industry giveaway

Canada’s TFWP has multiple streams (high‑wage, low‑wage, agriculture, recognized employer pilots and seasonal programs) and is used across sectors that report labour shortages; employers historically relied on the Low‑Wage Stream for restaurants, retail and certain service roles, and on agriculture and seasonal streams for farm work [1] [5]. Legal and industry advisories emphasize that employers must demonstrate shortages and meet prevailing wage rules in place to hire through TFWP [5] [6].

2. Recent policy changes shifted which job types are more likely to be approved

Since late 2024 the government increased the high‑wage threshold by roughly 20% above provincial medians and tightened caps and requirements on the low‑wage stream, moves intended to reduce the number of low‑paid TFW placements and push employers toward higher‑paid hires or other recruitment options [2] [7] [8]. Legal and employer groups warned these changes make it harder for employers who relied on low‑wage TFWs — effectively reducing approvals for traditionally low‑wage positions [1] [8].

3. Which job types still show up most in reporting and advisories

Public reporting and employer guidance point to repeated TFWP usage in agriculture and seasonal work, hospitality and food service, retail, some care occupations and select skilled trades where local labour shortages are documented; employers in large economic centres have relied on the Low‑Wage Stream in particular for these roles [1] [5]. Industry advisories note that many positions moved between streams after wage‑threshold changes, affecting approvals and employer planning [8] [9].

4. Wage subsidies are multiple, targeted programs — not a universal subsidy for hiring immigrants

Fact‑check reporting shows multiple federal and provincial wage subsidy programs exist (for students, credential recognition or sectoral training), and immigrants can qualify for these but so can Canadian citizens; the government says it does not offer a single blanket “kickback” to employers for hiring migrants [3] [4]. Examples cited include the Student Work Placement Program and projects under the Foreign Credential Recognition Program that included wage support for onboarding [3].

5. Where public narratives diverge — subsidy claims versus government framing

Viral social posts claiming employers receive large percentage “kickbacks” to hire migrants have been labelled misleading by fact‑checkers; Immigration Ministry messaging stresses program funding aims to integrate skilled newcomers rather than pay employers to replace local workers [3]. Independent commentators argue broader policy and program design can create incentives that function like subsidies in practice — a perspective present in critical analyses of the TFWP — but those critiques are distinct from proven, system‑wide payroll kickbacks [10].

6. Shortcomings and limits in the reporting you’ll find

Available sources document program types, recent reforms and examples of targeted wage support, but they do not list comprehensive, up‑to‑date breakdowns of every occupation by program on a single table — granular, current occupation‑level counts would need government LMIA or program‑specific administrative data not provided in these items (not found in current reporting). Also, critiques that frame the TFWP as an implicit subsidy to failing business models exist [10], but they are analytical arguments rather than government statements.

7. What this means for employers, workers and public debate

The TFWP continues to be a channel for filling temporary labour gaps across both low‑ and high‑wage roles, but post‑2024 reforms tightened wages and caps to reduce low‑wage dependence [2] [1]. Wage subsidies that support hiring or training newcomers are fragmented across programs and open to citizens as well as immigrants, so broad claims of universal employer kickbacks are contradicted by fact‑checks [3] [4]. Debate will persist between those who say remaining TFWP rules still facilitate cheap labour [10] and officials who point to reforms intended to raise wages and protect the labour market [2] [8].

Want to dive deeper?
Which industries most commonly hire through Canada's Temporary Foreign Worker Program (TFWP) in 2025?
How do job types covered by the Immigrant Wage Subsidy (IWS) differ from those under the TFWP?
What occupations are eligible for the IWS and which sectors benefit most from it?
Have policy changes since 2023 shifted employer reliance from TFWP to wage-subsidy programs?
What compliance, cost, and labour market tests do employers face when using TFWP versus the IWS?