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The federal government is setting the stage for a loosening of temporary foreign worker rules after vocal complaints from Canadian employers that recent Conservative changes went too far.

A Liberal-dominated House of Commons committee has completed a report on options for altering the controversial program and will make the recommendations public next month when Parliament resumes.

The report is expected to acknowledge the need for temporary foreign workers in specific sectors and will stress the importance of providing foreign workers with options to become permanent Canadian residents. The number of foreign-worker approvals has been on the decline in recent years in light of a softer jobs market in some regions and tighter rules brought in by the Conservatives after high-profile allegations of abuse in the program.