Starting September 26, Canada’s government will stop processing Labour Market Impact Assessments (LMIAs) for the Low-Wage category of the Temporary Foreign Worker Program (TFWP) in certain census metropolitan areas (CMAs).
Employment and Social Development Canada (ESDC) will no longer handle LMIAs for Low-Wage positions in CMAs where the unemployment rate is 6% or higher. Details on which specific cities will be affected have not yet been announced.
However, there will be exceptions for jobs in food security sectors (including primary agriculture, food processing, and fish processing), as well as in construction and healthcare.
Additionally, employers will be limited to hiring no more than 10% of their workforce through the TFWP, and the maximum employment duration for Low-Wage stream workers will be cut to one year instead of two.
Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, has stated that Canada has been over-relying on the Temporary Foreign Worker Program (TFWP).
“The Temporary Foreign Worker Program was intended to fill labor gaps when qualified Canadians were unavailable. Currently, we have more Canadians who can fill these roles. The changes we’re implementing today will prioritize Canadian workers and ensure the program aligns with our economic needs,” said Boissonnault.
Recent Labour Force Survey data shows Canada’s unemployment rate has been rising since April 2023, reaching 6.4% as of June 2024, which equates to 1.4 million unemployed individuals.
Boissonnault added that the new restrictions aim to reduce misuse and fraud within the TFWP. He also emphasized that Canadian employers need to focus on retraining and upskilling their current staff to meet future workplace 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 potentially refusing to process certain LMIA applications, including those for rural areas.
The TFWP is a common route for newcomers seeking work experience in Canada. Employers using the program must submit an LMIA to ESDC to assess whether hiring a foreign worker will positively, neutrally, or negatively impact Canada’s workforce and economy.
The TFWP includes two streams: Low-Wage and High-Wage. Low-Wage positions are those that pay below the median provincial hourly wage.
Recent adjustments to temporary worker quotas in Montreal
On August 20th, Quebec Premier François Legault announced new restrictions for temporary foreign workers in the Montreal administrative region.
Beginning September 3rd, both the Quebec provincial government and the federal Canadian government will halt the processing of LMIA applications for certain low-wage occupations (those paying below the Quebec median hourly wage) in Montreal.
This measure aligns with the recent announcement from Employment and Social Development Canada (ESDC). Workers who meet specific occupation, location, or wage criteria, or those who submit an LMIA application before September 3rd, 2024, will be exempt from these restrictions. The suspension is anticipated to remain in effect for six months.
Part of a wider plan
These adjustments to the Temporary Foreign Worker Program (TFWP) come as the Canadian government is increasingly focusing on the program and overall temporary resident levels, including those on work or study permits and visitor visas/electronic Travel Authorizations (eTAs).
Recently, both Employment Minister Boissonnault and Immigration Minister Marc Miller have publicly criticized abusive practices by employers in the TFWP, who are exploiting temporary foreign workers and overlooking Canadian employees in favor of lower-cost labor.
In their first joint statement on the issue in March, Immigration Minister Miller also introduced a historic change by including temporary resident levels in the annual Immigration Levels Plan. This aims to better manage the impact of this population on Canadian social services and infrastructure. Additionally, Canada has announced a cap on study permits for international students, which will be in effect until 2026.
