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 certain census metropolitan areas (CMAs).
Employment and Social Development Canada (ESDC) will stop processing LMIAs for the Low-Wage stream in CMAs where the unemployment rate is 6% or higher. Details on which specific cities will be affected have not yet been provided.
However, exceptions will be made for seasonal and non-seasonal jobs in food security sectors, including primary agriculture, food processing, and fish processing, as well as in construction and healthcare.
Additionally, employers will be restricted to hiring no more than 10% of their workforce through the TFWP, and the maximum employment duration for Low-Wage stream workers will be reduced from two years to one year.
Randy Boissonnault, the Minister of Employment, Workforce Development, and Official Languages, has stated that Canada has become overly dependent on the Temporary Foreign Worker Program (TFWP).
"The TFWP was intended to address labor shortages when qualified Canadians were not available for certain roles. Currently, we see that there are more Canadians who are qualified for these positions. The changes we are implementing today will prioritize Canadian workers and ensure that the program supports our economy's needs," said Boissonnault.
Data from the Labour Force Survey shows that Canada's unemployment rate has been rising since April 2023, with the current rate at 6.4% as of June 2024, equating to approximately 1.4 million unemployed individuals.
The Minister added that the new restrictions aim to "address TFWP misuse and fraud" and emphasized that Canadian employers should focus on retraining and upskilling their current workforce to meet future demands.
In the next 90 days, Employment and Social Development Canada (ESDC) will review the High-Wage stream of the TFWP. This review could lead to changes in existing LMIA applications for unfilled positions, sectoral exceptions, or the rejection of other LMIA applications, including those for rural areas.
The TFWP is a popular option 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 positively, neutrally, or negatively impact Canada's workforce and economy.
The TFWP has two streams: Low-Wage and High-Wage. Low-Wage positions are defined as those paying less than the median provincial hourly wage.
Recent developments in Montreal include a temporary suspension of LMIA processing for certain occupations in the Low-Wage stream, as announced by Quebec Premier François Legault on August 20. Effective September 3, both the Quebec provincial and federal Canadian governments will halt LMIA applications for Low-Wage positions in Montreal, where wages are below the Quebec median hourly wage. This suspension, which aligns with ESDC’s announcement, will last for six months, although some workers meeting specific criteria or those who applied before September 3, 2024, will be exempt.
These changes are part of a broader focus on the TFWP and overall temporary resident levels in Canada. Both Employment Minister Boissonnault and Immigration Minister Marc Miller have recently criticized abusive practices within the TFWP and highlighted the need for employers to prioritize Canadian workers.
In their joint address in March, Immigration Minister Miller also introduced the historic inclusion of temporary resident levels in the annual Immigration Levels Plan, aiming to manage the impact on Canadian social services and infrastructure. Additionally, Canada has announced a cap on study permits for international students, effective until 2026.
Comentários