In a major policy shift, the Canadian government has announced it will stop processing Low-Wage Labour Market Impact Assessments (LMIAs) for the Temporary Foreign Worker Program (TFWP) in select cities. This decision, unveiled on August 26th, 2024, marks a significant change in the management of foreign labor in Canada and aims to address ongoing labor market and economic concerns.
Effective September 26, 2024, the Government of Canada will implement the following changes to the TFW Program:
- Labour Market Impact Assessment: 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 not be permitted to hire more than 10% of their total workforce through the Temporary Foreign Worker Program (TFWP). 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.
A Plan To Invest In Local Workforce
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 Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy.”
Employers are now encouraged to explore domestic talent pools, including young people, newcomers, and persons with disabilities.
The government also urges employers to invest in retraining and upskilling their current employees to adjust to the changing economic conditions.
The government has pledged to monitor labour market conditions closely and make further adjustments to the TFW Program as needed.
A review of the program is planned within the next 90 days, which may lead to modifications in the high-wage stream, sectoral exceptions, and processing of existing LMIA applications.
The decision to halt processing low-wage LMIA applications in certain cities marks a notable shift in Canada’s approach to managing its labor market and temporary foreign workforce. While the policy aims to enhance job opportunities for Canadian workers and encourage investment in local talent, it also presents new challenges for employers who will need to adapt to these changes.
