Last Updated On 26 August 2024, 11:24 AM EDT (Toronto Time)
Today, the Government of Canada has announced stopping processing LMIAs under the low-wage stream for metropolitan cities with an unemployment rate of 6% or higher.
Furthermore, the Canadian government announced a series of significant changes to the Temporary Foreign Worker (TFW) Program aimed at reducing reliance on foreign workers and prioritizing Canadian talent.
This move comes in response to the increasing misuse of the program and the country’s shifting labour market dynamics, marked by a rising unemployment rate.
Table of Contents
Key Changes Effective September 26, 2024
Effective September 26, 2024, the Government of Canada will implement the following changes to the TFW Program:
- Labour Market Impact Assessment (LMIA) Refusals in High Unemployment Areas: The government will refuse to process LMIAs in the Low-Wage stream for census metropolitan areas where the unemployment rate is 6% or higher.
- However, exceptions will be made for jobs in sectors critical to food security, including primary agriculture, food processing, and fish processing, as well as in construction and healthcare.
- 10% Cap on Foreign Workers: Employers will now be limited to hiring no more than 10% of their total workforce through the TFW Program, a further reduction from the 20% cap implemented in March 2024.
- Exceptions will apply to the same critical sectors mentioned above.
- Reduced Employment Duration: The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year from the previous two-year limit.
Government’s Focus on Canadian Workers
Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, emphasized the importance of investing in the domestic workforce.
“The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy,” said Minister Boissonnault.
Employers in Canada are urged to explore untapped economic resources within the country, including young people, newcomers, and persons with disabilities.
Additionally, the government encourages employers to invest in retraining and upskilling their current workforce to adapt to the evolving economic landscape.
Monitoring and Future Adjustments
The Government of Canada has committed to ongoing monitoring of labour market conditions and will make further adjustments to the TFW Program as necessary.
Within the next 90 days, a comprehensive review of the program will be conducted, potentially leading to changes in the high-wage stream, sectoral exceptions, and the processing of existing LMIA applications.
Rising Unemployment and Policy Adjustments
These changes are part of a broader effort by the Canadian government to roll back pandemic-era measures that were initially implemented to address an extraordinary labour shortage.
As Canada’s labour market has loosened, with the unemployment rate rising to 6.4% in June 2024, the government began reducing the validity period of LMIAs from 18 months to 6 months and lowering the cap on the percentage of temporary foreign workers from 30% to 20%.
In a related move, on August 20, 2024, the Government of Canada approved a proposal by the Government of Quebec for a temporary freeze on new TFW approvals in the low-wage stream in Montreal.
Starting September 3, 2024, the processing of LMIA applications will be suspended for six months for job offers in the Montreal region with wages below $27.47/hour, Quebec’s current median hourly wage.
Endnote
The Government of Canada’s latest measures reflect a strong commitment to ensuring that the TFW Program is used appropriately and that Canadian workers are given priority in the job market.
As the labour market continues to evolve, further adjustments to the program are expected to align with the country’s economic needs.
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