Newfoundland and Labrador expands work permit access in rural areas

Newfoundland and Labrador is the latest province to opt into the federal government’s temporary public policy, which allows rural employers more flexibility when hiring low-wage temporary foreign workers.

Only employers in areas outside Newfoundland and Labrador census metropolitan areas, as determined by Statistics Canada, are eligible under this policy.

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About these measures

This temporary policy, intended to assist employers using the Temporary Foreign Worker Program (TFWP) in meeting labour market needs in rural areas, was enacted on April 1, 2026.

Eligible rural employers in participating provinces will be able to:

retain their current level of temporary foreign workers in low-wage positions, if it exceeds the 10% cap; and/or
benefit from a 15% cap, rather than the standard 10% cap, on the proportion of temporary foreign workers in low-wage positions.

This is an opt-in policy, meaning provinces have the ability to choose whether they wish to participate, and which measure(s) to adopt.

As per an update on the federal government’s webpage on June 2, Newfoundland and Labrador will adopt both measures, applicable across all sectors.

The measures will be implemented in the province on June 11, 2026, and are expected to remain in effect until March 31, 2027.

Who does not qualify?

Employers who do not meet all regular TFWP requirements, including demonstrating efforts made to recruit Canadian citizens and permanent residents first, cannot access these measures.

Employers in Newfoundland and Labrador that are not located in a rural area will not be able to benefit from these measures.

These measures do not apply to rural NL employers that submit a Labour Market Impact Assessment (LMIA) before June 11, 2026. The measures will be applied once an eligible employer submits a new LMIA during the effective period of the measures.

Employment and Social Development Canada (ESDC) further notes that low-wage positions under the permanent resident dual-intent stream will be excluded from these measures. A dual intent LMIA generally serves two purposes: it supports the foreign worker’s application for permanent residence (PR), and helps them apply for a temporary work permit so they can work in Canada while the PR application is being processed.

Sector-specific exemptions

Certain sectors and subsectors have a 20% cap on the proportion of temporary foreign workers that an employer can hire, which will not be impacted by the updated sector caps under these measures.

These include the following:

Positions in construction (NAICS 23)
Positions in food manufacturing (NAICS 311)
Positions in hospitals (NAICS 622)
Positions in nursing and residential care facilities (NAICS 623)
Specific in-home caregiver positions in a private household under:
- Registered nurse or registered psychiatric nurse (NOC 31301)
- Licensed practical nurse (NOC 32101)
- Home childcare providers (NOC 44100)
- Attendant for persons with disabilities, home support worker, live-in caregiver, personal care attendant (NOC 44101)

The impact of Newfoundland and Labrador opting into this policy

These measures may provide support to rural NL employers in sectors that rely on the TFWP, particularly in areas where ongoing labour shortages have left low-wage positions difficult to fill with local workers.

As a result of NL adopting these measures, foreign workers may see new job opportunities in select rural communities, depending on employer eligibility.