The Temporary Foreign Worker (TFW) Program is intended as a last-resort option for employers when qualified Canadians and permanent residents are unavailable to fill job vacancies. To address current labour market conditions and reduce employers’ dependency on the program, Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, announced updates to the TFW Program on August 26.
Today, Minister Boissonnault is providing further details and outlining the next steps for key changes that will take effect on September 26, 2024. These updates include:
- The 10% employer cap on temporary foreign workers in the Low-wage Stream of the Temporary Foreign Worker (TFW) Program will now apply nationwide, including occupations under Quebec’s Traitement Simplifié process. However, employers in the healthcare, construction, and food processing sectors will be granted a higher 20% cap to address critical labour shortages.
- All Labour Market Impact Assessments (LMIAs) approved for Low-wage Stream positions, including those under Traitement Simplifié, will have a maximum work duration of one year, except for positions in the Primary Agriculture Stream.
- The Refusal to Process (RTP) policy will apply to all Census Metropolitan Areas (CMAs) with an unemployment rate above 6%, but employers in healthcare, construction, and food processing sectors will be exempt. CMA unemployment data will be updated quarterly, with the list revised the same day as the release of each quarter’s first Labour Force Survey.
Canadian employers are expected to invest in the diverse talent pool available within the country, including youth, newcomers, and persons with disabilities, who often remain an underutilized resource. Employers must also focus on retraining and upskilling their current workforce to prepare them for the future economy. The Government of Canada is committed to supporting businesses in finding the workers they need, while also ensuring Canadian workers have access to opportunities through education and training support.
In the coming months, the Government will continue to monitor labour market conditions and may implement further changes to the Temporary Foreign Worker (TFW) Program. Over the next 90 days, the program will undergo a review, which could lead to adjustments in the High-Wage Stream, unfilled Labour Market Impact Assessment (LMIA) applications, sector-specific exceptions, or restrictions on processing other LMIA applications, including those from rural areas. These changes aim to ensure that only employers with proven labour shortages can access the program.
“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.”
– Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault
According to the latest Labour Force Survey data, the unemployment rate increased from 6.4% to 6.6%, continuing an upward trend since April 2023, with a total rise of 1.5 percentage points. In August 2024, the number of unemployed people grew by 60,000 (+4.3%) to reach 1.5 million.
As the labour market eased, the Government of Canada began phasing out pandemic-era measures designed to address critical labour shortages. Since October 2023, these adjustments have included reducing the validity period of Labour Market Impact Assessments (LMIAs) from 18 months to 6 months and lowering the cap on the percentage of temporary foreign workers from 30% to 20%, aiming to restore the Temporary Foreign Worker (TFW) Program to pre-pandemic standards.
On August 20, 2024, the Government of Canada approved Quebec’s request to temporarily stop processing new LMIA applications under the Low-wage Stream in Montreal. As of September 3, 2024, the processing of LMIA applications for jobs paying less than $27.47 per hour in Montreal will be suspended for six months. This is in line with Quebec’s median hourly wage.
Additionally, on August 6 and 26, the Government of Canada introduced new measures to further tighten restrictions on temporary residents, with a goal to reduce their numbers by 2027.
