Canada to End Low-Wage LMIA Processing for Temporary Foreign Workers
Canada to End Low-Wage LMIA Processing for Temporary Foreign Workers
On August 26, 2024, the Government of Canada announced significant changes coming to the Temporary Foreign Worker Program (TFWP), in particular, the government’s intention to cease processing Labour Market Impact Assessments (LMIAs) for the Low Wage stream of the program in some census metropolitan areas (CMAs). This is a bid to help reduce fraud and misuse of the TFWP as well as prioritizing Canadian workers. These changes will be effective September 26, 2024, and are part of the government’s broader initiative to align with evolving labour market conditions.
These changes come amid plans announced by the government to reduce temporary residents population to 5% over the next three years, down from the current 6.2% of Canada’s population.
Major Revisions to the TFW Program
- Labour Market Impact Assessments (LMIAs) Refusals in High Unemployment Areas: Starting September 26, the government will no longer process LMIAs for the Low-Wage stream of the TFWP in CMAs where the unemployment rate is 6% or higher. Specific cities affected have not yet been announced. However, exceptions will be made for seasonal and non-seasonal jobs in critical sectors such as food security (including primary agriculture, food processing, and fish processing), as well as construction and healthcare.
- 10% Cap on Foreign Workers: Employers will be limited to hiring no more than 10% of their total workforce through the TFWP, reduced from the previous 20% cap introduced in March 2024. This new cap applies to the Low-Wage stream but excludes critical sectors like food security, healthcare, and construction.
- Reduced Employment Duration: The maximum employment duration for workers in the Low-Wage stream will be reduced from two years to one year. This change aims to ensure more short-term solutions are used, rather than long-term reliance on temporary foreign workers.
Commitment to Canadian Workers
Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, emphasized that these changes aim to prioritize Canadian workers in the job market. “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.” he stated.
Employers are strongly encouraged to invest in the local workforce, including youth, newcomers, and individuals with disabilities. There is also a call to focus on upskilling current employees to adapt to the evolving economic landscape.
Continuous Monitoring and Future Adjustments
The Government of Canada will continue to monitor labour market conditions and is prepared to make further adjustments to the TFWP as needed. In the coming months, the government will ensure that only employers with clear labour market needs have access to the program. A comprehensive review of the High-Wage Stream is anticipated within the next 90 days, which could lead to changes affecting this stream of the program as well.
Addressing the Rising Unemployment Rate
These changes are part of a broader initiative to roll back pandemic-era measures. Canada’s unemployment rate has risen to 6.4% as of June 2024, according to data from Statistics Canada.
Recent Developments in Quebec
These changes come on the heels of recent announcements made by the Quebec government, where there are plans to implement a temporary suspension of Labour Market Impact Assessment (LMIA) applications for low-wage positions in Montréal come September 3, 2024. This suspension applies to job offers with hourly wages below $27.47 CAD, the median hourly wage in Quebec, and will be in effect for six months. Quebec Premier François Legault and Immigration Minister Christine Fréchette announced this measure on August 20, 2024, to address labour market imbalances and uphold the integrity of the TFWP.
Conclusion
These measures underscore Canada’s commitment to ensuring that the TFWP is used appropriately and that Canadian workers are given top priority. As labour market conditions continue to evolve, further modifications to the program are expected to better align with the nation’s economic needs.
Next Steps
If you’re an employer or a temporary foreign worker concerned about how these new changes might impact your employment or hiring plans, we’re here to assist. Contact us to navigate these updates effectively.
Our team will help you understand the implications of these policy shifts, guide you through the application process, and ensure compliance with the new regulations.
Contact us today to book your consultation and ensure your business or employment is aligned with the latest changes in the TFW Program.
The Team at Northern Connections Canada
