Debate rages on over Canada's temporary foreign worker cap increase

Restaurants Canada is urging provinces to opt in to the Temporary Foreign Worker (TFW) cap increase for rural regions, and it has sparked a heated discussion online.

The advocacy group for the food service and restaurant industry shared a statement on Monday, saying it is waiting to hear from provincial governments on whether they will receive a "temporary reprieve for their labour force challenges" through the TFW cap increase.

On March 13, Employment and Social Development Canada (ESDC) announced it would temporarily increase the cap on low-wage TFWs from 10 to 15 per cent of the workforce in eligible rural regions at the request of provinces and territories.

April 1 was the first day businesses could potentially use the increase, but Restaurants Canada said most have yet to hear from their provincial governments.

Rural restaurants are waiting to hear from provincial governments on whether they will receive a temporary reprieve for their labour force challenges through the Temporary Foreign Worker (TFW) cap increase, says Restaurants Canada.

On March 13, the federal government announced… pic.twitter.com/BbMGhHTsnf

— Restaurants Canada (@RestaurantsCA) April 6, 2026

"We need long-term workforce solutions that include investments in youth training, technology and immigration with a path to permanent residency, but in the meantime, restaurants need workers now," stated Kelly Higginson, president and CEO of the advocacy group.

The ESDC said that while "Canadians must always be first in line for available jobs," the TFW Program helps regions experiencing severe labour shortages.

"It allows employers to hire foreign workers to address critical, short-term workforce gaps when qualified Canadians or permanent residents are not available," reads the March announcement.

According to the government, TFWs represent approximately one per cent of Canada's overall workforce.

Restaurants Canada said TFWs make up just three per cent of the food service industry and "are a last resort for employers, filling critical gaps in communities with aging populations, shrinking workforces and declining youth participation rates."

The advocacy group added that hiring a TFW is expensive, and employers have to prove they were unable to hire locally at the market wage. TFWs fill skilled positions, like chefs or cooks, or hard-to-fill shifts, like overnights.

Restaurants Canada argued that when these roles aren't filled, restaurants have to drop shifts, cut hours of operation, or potentially close their businesses.

"In some rural communities, restaurants may be the only source of local employment for youth," added Higginson. "They are community gathering spaces, places for travellers and locals to have a meal. Losing a restaurant in these communities is devastating."

We contacted the ESDC for comment and will update the story when it responds.

Online discussions over Restaurants Canada's plea

The statement received backlash online, with many calling the organization "greedy" and particularly disagreeing with its stance on youth employment.

"There are literally tons and tons of high schoolers and college/university students looking for summer work or even work during the academic year. There is no need for this nonsense," reads one comment on a Reddit post.

According to Statistics Canada's latest labour force survey, the youth unemployment rate rose to 14.1 per cent in February 2026, with employment falling by 47,000. It's one of the highest youth unemployment rates since 2010.

"Perhaps restaurants in Canada should start paying more to attract locals instead of looking for cheaper and easier abused foreign workers?" reads another comment on a Reddit post.

A 2025 report from Amnesty International suggested that the TFW Program enables abuse of migrant workers, "treating them as disposable."

"People who are currently employed or have worked under the programme told Amnesty International that, after arriving in Canada, they were forced to work long hours without rest and received lower pay than agreed," reads the report. "They were often assigned tasks not included in their contract and suffered physical, sexual and psychological abuse."

Days before the call for an increase in the TFW cap, Restaurants Canada shared a statement denouncing Alberta's Immigration Oversight Act. The organization argued that it would create barriers to access labour during a labour shortage.

"The preference is always to hire Albertans, but in some regions, there are just not enough workers available, or they don't have the right training and skills," said Higginson. "You can't operate a kitchen without a trained chef or maintain a 24/7 rest stop if no one is willing to work overnight."

This comes amid Alberta Premier Danielle Smith's anti-immigrant rhetoric, suggesting they're a burden to taxpayers in the province.

What's your reaction to Restaurants Canada's calls to increase the cap on TFWs? Let us know in the comments.