Canada and the United States share one of the most active cross-border labor exchanges in the world. While much of the focus typically falls on trade and permanent immigration, temporary foreign workers (TFWs) from the U.S. have played a unique and evolving role in Canada's labor market.
A new report from Statistics Canada, released on April 23, 2025, offers a deep dive into these trends—highlighting how U.S. citizens and non-citizen U.S. residents differ in how they enter, work, and earn in Canada.
Decline in U.S. Citizen TFWs, Surge in U.S. Non-Citizen Workers
The total number of temporary foreign workers from the U.S. has declined overall since 2013, primarily due to a drop in entries by U.S. citizens. However, during the same period, there has been a significant increase in U.S. non-citizen residents working temporarily in Canada.
- In 2010, U.S. citizens made up the vast majority of American TFWs.
- By 2023, U.S. non-citizen residents accounted for 31% of all U.S.-origin temporary workers in Canada—up from just 6% in 2010.
- The total share of U.S. TFWs in Canada’s overall temporary worker population fell from 17% in 2010 to just 4% in 2023.
Why the decline in U.S. citizens?
This trend is closely tied to reduced reliance on international agreements (like NAFTA/CUSMA) and tighter restrictions under the Temporary Foreign Worker Program (TFWP). Since the mid-2010s, Canada has shifted focus to other global labor sources, while U.S.-based companies have centralized more jobs domestically, reducing outward placement of workers.
In contrast, non-citizen residents in the U.S.—often foreign-born tech and STEM professionals—are increasingly choosing Canada, likely due to stricter U.S. immigration laws and Canada's welcoming policies for skilled workers.
Admission Programs: How They’re Getting In
🔹 U.S. Citizens
- Nearly 50% enter through international trade agreements under the International Mobility Program (IMP) (e.g., CUSMA).
- Only 5% of U.S. citizens use the TFWP.
- A growing share (48% by 2022) now enter via other IMP substreams, such as intra-company transfers, open work permits for spouses, or workers delivering significant economic/cultural value.
🔹 U.S. Non-Citizen Residents
- A striking 89% use IMP streams not tied to trade deals.
- Their admission patterns are more similar to those of other international TFWs, who often apply through standard IMP channels or with employer sponsorships.
This means U.S. non-citizen residents are navigating more complex but higher-yield immigration pathways—often with the intent of transitioning to permanent residency.
Occupational Skill Levels and Work Sectors: Who's Doing What?
🔧 U.S. Citizens
About 76% of U.S. citizens working temporarily in Canada hold roles classified as managerial, professional, or technical. These are high-skilled jobs often associated with leadership, strategic planning, or specialized knowledge.
Top industries for U.S. citizen TFWs include:
- Professional, Scientific, and Technical Services – This includes engineers, IT consultants, software developers, and legal or management advisors.
- Educational Services – Many U.S. educators come to Canada for academic roles, workshops, or exchange programs.
- Smaller but visible presence in construction, manufacturing, and arts & entertainment.
🧠 U.S. Non-Citizen Residents
Roughly 67% of non-citizen workers also fall into high-skilled job classifications, but they are even more concentrated in STEM-heavy fields:
- Over 55% are in Professional, Scientific, and Technical Services, compared to only 18% among workers from other countries.
- Their participation in education, health care, or low-skilled sectors like accommodation and food services is relatively limited.
This concentration in tech and science-driven sectors indicates that U.S. non-citizen residents are highly skilled professionals, often with postgraduate qualifications or prior experience with global firms.
T4 Earnings and Income Patterns: Who’s Earning What?
Another major difference lies in actual employment income, as captured through T4 tax slips:
| Worker Group | % with T4 Earnings | Median Earnings (2022) | 90th Percentile |
|---|---|---|---|
| U.S. Citizens | 35% | $75,900 | $343,200 |
| U.S. Non-Citizen Residents | 69% | $107,600 | $266,000 |
| Other TFWs | 74% | $42,500 | $116,700 |
U.S. non-citizen workers not only had higher participation in Canada’s labor market (as measured by T4 filings), but they also earned significantly more than other groups. This suggests:
- Stronger integration into Canada’s formal economy
- Greater demand for their high-level skills
- Possible alignment with sectors offering competitive salaries (e.g., tech, R&D)
In comparison, many U.S. citizen TFWs may be paid by U.S.-based employers or engaged in roles that don’t generate Canadian payroll income (e.g., remote executive functions, short-term consulting).
Path to Permanent Residency: A Strong Pull Factor
Perhaps the most telling statistic: 48% of U.S. non-citizen TFWs in 2019 became Canadian permanent residents by 2023. Only 10% of U.S. citizen TFWs made that transition.
This demonstrates a clear intent among non-citizen residents to use temporary employment as a stepping stone to PR and eventual citizenship, likely due to:
- Uncertainty in U.S. immigration (e.g., visa caps, green card delays)
- Canada’s friendlier and more transparent PR pathways (e.g., Express Entry)
The U.S. Labor Flow to Canada Is Changing
The latest trends show that Canada is becoming a preferred destination for non-citizen skilled professionals living in the U.S., many of whom are highly educated and earn top-tier salaries. Their growing numbers and impressive labor market performance signal that they are not just filling gaps—but helping shape Canada’s knowledge economy.
Meanwhile, the decline in U.S. citizen TFWs reflects broader changes in trade-based labor mobility and cross-border business operations. Despite the drop, their presence remains valuable in specialized, short-term assignments.
For policymakers and employers alike, these trends underscore the importance of adapting immigration programs to attract and retain top talent—particularly from regions where domestic policies may be pushing skilled workers away.
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