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Cabinet agreed to ease restrictions on migrant labour following lobbying from Tim Hortons franchisees, according to access-to-information records and internal government memos.

An October 28 briefing note from the deputy minister of industry, citing Statistics Canada data, warned that the country is facing a shrinking labour force and ongoing productivity challenges. The memo included concerns from Tim Hortons operators, who said “persistent labour shortages continue to limit the restaurant industry’s operational success,” forcing some businesses to focus on survival rather than expansion.

Franchisees argued that without access to foreign workers, tens of thousands of jobs could go unfilled.

The policy shift comes as Canada continues to see elevated youth unemployment, raising questions about whether entry-level roles are being filled by temporary foreign workers instead of young Canadians.

These jobs have traditionally served as a first step into the workforce, providing experience and income for students and young people. 

Tim Hortons locations remain busy across the country, with steady demand and long lines at many outlets, suggesting the issue is not a lack of customers.

The government has not fully outlined its reasoning for easing the restrictions, but the documents indicate industry pressure played a significant role.

The decision adds to the ongoing debate over immigration policy, labour market needs and whether current programs are aligned with employment opportunities for Canadians, particularly younger workers entering the job market.