The federal government will not renew Yukon's stand-alone temporary foreign worker program when the one-year pilot project expires at the end of the month.
The federal temporary worker program will continue to operate under new rules the government announced last month.
Yukon Education Minister Elaine Taylor says officials have been looking into the impact this will have on the territory. She says about 20 people were hired through the Yukon's pilot project.
She says she was told there were no problems with it, but the federal government is taking more control nationwide because of abuses by employers.
Taylor is in Prince Edward Island this week where her federal, territorial and provincial counterparts will be talking about the temporary foreign worker program. Several provinces are highly critical of restrictions recently added by the federal government.
They say labour shortages could force some businesses to close.
Taylor said she is not criticizing the changes but says federal Employment Minister Jason Kenney could have handled it better.
"What we really want to press upon Minister Kenney is that collaboration is absolutely key to determine effective solutions when we discuss labour challenges," she said.
"It would have been helpful to have a dialogue with the provinces and territories prior to making those announcements."
Taylor says the Yukon Nominee Program will not be affected. It's meant for long term and permanent employees and has brought about 700 workers to the territory so far.