Starting September 26, the Canadian government will cease processing Labour Market Impact Assessments (LMIAs) for the Low-Wage stream of the Temporary Foreign Worker Program (TFWP) in select census metropolitan areas (CMAs).
Employment and Social Development Canada (ESDC) has announced that LMIAs for the Low-Wage stream will not be processed in CMAs where the unemployment rate is 6% or higher. Specific details on the affected cities have not yet been disclosed.
However, exceptions will be made for seasonal and non-seasonal roles in key food security sectors, including primary agriculture, food processing, and fish processing, as well as for positions in construction and healthcare.
Additionally, employers will be limited to hiring a maximum of 10% of their workforce through the TFWP. The employment duration for workers in the Low-Wage stream will be reduced from two years to one.
Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, emphasized that Canada has become overly reliant on the TFWP.
“The Temporary Foreign Worker program was originally intended to address labor shortages when qualified Canadians were unavailable. Today, more Canadians are qualified to fill these roles. The changes we are implementing will prioritize Canadian workers and ensure that the program meets the needs of our economy,” Boissonnault said.
According to data from the Labour Force Survey, Canada’s unemployment rate has been rising since April 2023, reaching 6.4% as of June 2024, representing 1.4 million unemployed individuals.
The Minister stated that these new measures aim to “weed out TFWP misuse and fraud.” He also highlighted the responsibility of Canadian employers to retrain and upskill their current employees to meet future workplace demands.
Over the next 90 days, ESDC will conduct a review of the High-Wage stream of the TFWP. This review could lead to changes in existing LMIA applications for unfilled positions, sectoral exceptions, or even the suspension of LMIA processing in rural areas.
The TFWP remains a popular pathway for newcomers seeking work experience in Canada. Employers using the program must submit an LMIA to ESDC to determine whether hiring a foreign national will have a positive, neutral, or negative impact on Canada’s workforce and economy.
The TFWP is divided into two streams: Low-Wage and High-Wage. Low-wage positions are those with hourly wages below the provincial median.
On August 20, Quebec Premier François Legault announced new restrictions targeting the Montreal “administrative region” under the TFWP.
Beginning September 3, both the Quebec and federal governments will suspend LMIA processing for some occupations in Montreal’s Low-Wage stream (positions earning less than the Quebec median hourly wage).
This policy aligns with ESDC’s recent announcement, with exemptions for workers who meet certain criteria or submit an LMIA before September 3, 2024. The suspension is expected to last six months.
These changes to the TFWP come as the Canadian government increases its scrutiny of the program and the overall number of temporary residents (including those on work or study permits and visitor visas).
In recent months, Employment Minister Boissonnault and Immigration Minister Marc Miller have publicly criticized employers within the TFWP for exploiting temporary foreign workers and prioritizing cheaper labor over Canadian workers.
In March, Immigration Minister Miller announced the historic inclusion of temporary resident levels in the annual Immigration Levels Plan to better manage the pressures this population places on Canadian social services and infrastructure. As part of this initiative, Canada also introduced a study permit cap on international students, effective until 2026.
The post Canada to Halt Processing of Low-Wage LMIAs in Certain Cities for Temporary Foreign Worker Program appeared first on CI News | Latest Canada Immigration News.
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