Starting September 26, Canada will stop processing Labour Market Impact Assessments (LMIAs) for the Low-Wage stream of the Temporary Foreign Worker Program (TFWP) in census metropolitan areas (CMAs) with unemployment rates of 6% or higher. Specific cities impacted by this change have yet to be announced.
Exceptions will be made for seasonal and non-seasonal jobs in critical sectors, including primary agriculture, food processing, fish processing, construction, and healthcare. Additionally, employers will be limited to hiring no more than 10% of their total workforce through the TFWP, and the maximum duration of employment for Low-Wage stream workers will be reduced from two years to one year.
Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, emphasized the need to prioritize Canadian workers, stating that the TFWP should only be used when no qualified Canadians are available to fill roles. The Minister noted that the changes aim to address misuse of the TFWP and ensure employers are upskilling their current workforce.
Canada’s unemployment rate has been rising since April 2023, reaching 6.4% as of June 2024, which represents 1.4 million unemployed people. The government believes these new restrictions will help combat TFWP misuse and fraud.
Over the next 90 days, Employment and Social Development Canada (ESDC) will review the High-Wage stream of the TFWP. This review could result in changes to existing LMIA applications, sectoral exceptions, or refusals to process other LMIA applications, including those for rural areas.
The TFWP remains a popular pathway for newcomers seeking work experience in Canada. Employers must submit an LMIA to ESDC to determine if hiring a foreign national will positively, neutrally, or negatively impact Canada’s workforce and economy. The program has two streams: Low-Wage, for positions paid less than the median provincial hourly wage, and High-Wage.
Recent policy changes in Quebec On August 20th, Quebec Premier François Legault announced restrictions on temporary foreign workers targeting Montreal. Beginning September 3rd, both the Quebec provincial government and the federal Canadian government will suspend processing LMIA applications for certain Low-Wage occupations in Montreal.
This suspension aligns with the federal government’s recent announcement and will last for six months. Certain workers who meet specific criteria or submit an LMIA before September 3rd, 2024, may be exempt from these changes.
A broader plan These changes are part of a wider effort by the Canadian government to address issues within the TFWP and manage the impact of temporary residents on Canada’s social services and infrastructure. Employment Minister Boissonnault and Immigration Minister Marc Miller have both condemned abusive practices by employers within the TFWP and emphasized the importance of prioritizing Canadian workers.
In March, Immigration Minister Miller announced the inclusion of temporary resident levels in Canada’s annual Immigration Levels Plan to better manage the pressures on social services. Additionally, Canada has introduced a cap on study permits for international students, effective until 2026.
