Labour Market Impact Assessments LMIAs for the Low-Wage stream of the Temporary Foreign Worker Program (TFWP) in certain census metropolitan areas CMAs will no longer be processed by the Canadian government as of September 26.
In CMAs with an unemployment rate of 6% or greater Employment and Social Development Canada ESDC will not process LMIAs in the Low-Wage stream. Which cities will be affected is a matter for future disclosure.
The agency does point out that there will be an exception for both seasonal and non-seasonal work in the construction and healthcare industries, as well as the primary agricultural, food processing, and fish processing sectors related to food security.
Read Also: How to Apply for an Open Work Permit in Canada
Additionally, the TFWP will not allow firms to hire more than 10% of their total workforce and workers hired under the Low-Wage stream will only be able to work for a maximum of one year instead of two years.
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Canada has been depending too much on the program, according to Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages.
In situations where competent Canadians could not fill open positions, the Temporary Foreign Worker program was created to alleviate a labor shortfall. At present, we are aware that there are more Canadians who meet the requirements to take on available roles. In addition to guaranteeing that Canadians can trust the program is serving the needs of our economy, the adjustments we are proposing today will prioritize workers in Canada.
Canada’s unemployment rate has been gradually rising since April 2023, per statistics from the Labour Force Survey. According to June 2024 data, the unemployment rate is 6.4%. This translates to 1.4 million jobless persons.
These additional limitations, according to the Minister, would aid in “weeding out TFWP misuse and fraud.” Additionally, he points out that to guarantee that their current workforce is capable of adjusting to changing demands in the workplace, Canadian firms are required to provide retraining and upskilling their workforce.
During the following ninety days, ESDC will examine the TFWP’s High-Wage stream. According to the Ministry, this would include processing other LMIA applications including those for rural areas or changing sectoral exceptions or current LMIA applications for unfilled positions.
For immigrants wishing to obtain work experience in Canada, the TFWP is a well-liked route. To participate in the program, employers must submit an LMIA to ESDC indicating whether they believe hiring a foreign national will benefit, neutralize, or harm Canada’s labor market and economy.
Under the TFWP, there are two streams: High-Wage and Low-Wage. Jobs that pay less than the hourly median salary in a province are classified as low-wage jobs.
Montreal’s temporary worker numbers have recently changed
The temporary limits on foreign workers directed towards Montreal’s “administrative region” were announced by Premier François Legault of Quebec on August 20.
Both the federal and provincial governments of Quebec will stop processing LMIA applications for certain jobs (in Montreal) that fall under the TFWP’s Low-rate stream (those with hourly wages below the Quebec median hourly rate) as of September 3.
The policy is consistent with the announcement made today by ESDC, except for some individuals who satisfy the requirements related to occupation, location, and/or wage; or those who file an LMIA before September 3rd, 2024. Six months are anticipated to pass during this ban.
A portion of a larger scheme
The TFWP is undergoing modifications at a time when the Canadian government is paying more attention to the program and temporary residents generally those with work/study permits, guest visas, or electronic travel authorization (eTAs).
Adversive companies within the TFWP who take advantage of temporary foreign workers and disregard Canadian workers in favor of cheaper labor have been publically called out by both Employment Minister Boissonnault and Immigration Minister Marc Miller in recent months, both together and individually.
The historic addition of temporary resident levels to the annual Immigration Levels Plan was also announced by Immigration Minister Miller in their first joint address on the subject in March. This move is intended to help better manage the strain that this population places on Canadian social services and infrastructure. Canada additionally declared a cap on abroad study permits, effective until 2026, in support of this objective.