While Ottawa has repeatedly defended the Temporary Foreign Worker Program as a tool to address labour shortages, the growing administrative costs are attracting scrutiny as youth unemployment remains elevated and many Canadians struggle to find entry-level work
The federal government's bureaucracy for managing foreign worker programs now costs taxpayers more than $400 million annually, according to newly released Order Paper responses tabled in the House of Commons.
Employment and Social Development Canada (ESDC) spent $177.7 million administering the Temporary Foreign Worker Program in 2024-25, up from $111.8 million in 2020-21, a 59 percent increase in just four years.
At the same time, Immigration, Refugees and Citizenship Canada (IRCC) reported spending an estimated $227.6 million processing work permits for foreign workers in 2024-25, compared to $148.9 million in 2020-21.
Combined, the two departments spent more than $405 million last year operating Canada's foreign worker system.
The largest ESDC expense was national headquarters support, including policy development, operational guidance, labour market information, systems support and internal services, which cost taxpayers nearly $90 million in 2024-25.
Another $54.5 million was spent processing Labour Market Impact Assessments, while employer compliance verification cost $31.2 million.
The figures come from Order Paper Question Q-1061, submitted by Conservative MP Brad Vis.
While Ottawa has repeatedly defended the Temporary Foreign Worker Program as a tool to address labour shortages, the growing administrative costs are attracting scrutiny as youth unemployment remains elevated and many Canadians struggle to find entry-level work.
The ESDC figures alone show federal spending on the program has increased every year:
- 2020-21: $111.8 million
- 2021-22: $131.2 million
- 2022-23: $161.5 million
- 2023-24: $176.7 million
- 2024-25: $177.7 million
Meanwhile, IRCC's estimated costs for issuing work permits climbed from $148.9 million to $227.6 million over the same period. The department noted that it cannot distinguish between costs associated with the Temporary Foreign Worker Program and the International Mobility Program because both streams are processed through the same system.
Even after collecting approximately $150.7 million in work permit fees last year, IRCC's reported costs still exceeded fee revenues by nearly $77 million.
Taken together, the figures suggest taxpayers are now spending more than $400 million annually to administer Canada's foreign worker programs before accounting for any broader economic debates over whether those jobs should be going to Canadians instead.