The Temporary Foreign Worker (TFW) Program is intended as a last resort for filling job vacancies when qualified Canadians and permanent residents aren’t available. However, the program has been misused, allowing some employers to bypass hiring domestic talent.
To address these concerns, Minister Randy Boissonnault recently informed business organizations that the Government of Canada is considering tightening access to the TFW Program and enhancing compliance measures. Today, in response to ongoing labour market challenges, the government announced new steps to combat misuse and fraud within the program.
Starting September 26, 2024, the following changes will take effect:
- Refusal of Labour Market Impact Assessments (LMIAs) in the Low-Wage stream: This applies to areas with an unemployment rate of 6% or higher. Exceptions will be made for seasonal and non-seasonal jobs in critical sectors like food security (agriculture, food processing, fish processing), construction, and healthcare.
- Restriction on TFW hires: Employers can only fill up to 10% of their workforce through the TFW Program in the Low-Wage stream, a further reduction from March 2024. Exceptions will again be made for jobs in food security, healthcare, and construction sectors.
- Shortened employment duration: The maximum employment period for workers hired through the Low-Wage stream will be reduced from two years to one year.
The government emphasizes that Canadian employers must prioritize the domestic workforce, including youth, newcomers, and individuals with disabilities, who often remain underutilized. Additionally, employers are encouraged to invest in retraining and upskilling their current employees to prepare them for the evolving economy.
The Government of Canada will continue monitoring the labour market and may introduce further adjustments to the TFW Program. Over the next 90 days, a comprehensive review could lead to changes in the High-Wage Stream, existing LMIA applications, and sectoral exceptions. These actions aim to ensure that only employers with proven labour needs 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
Key Points
The latest Labour Force Survey data shows that Canada’s unemployment rate rose to 6.4% in June 2024, marking the second consecutive monthly increase. Since April 2023, the unemployment rate has trended upward, increasing by 1.3 percentage points. In June 2024, the number of unemployed individuals reached 1.4 million, an increase of 42,000 (+3.1%) compared to the previous month.
As the labour market has eased, the Government of Canada has started phasing out pandemic-related measures designed to address labour shortages. Beginning in October 2023, these adjustments included reducing the validity period of Labour Market Impact Assessments (LMIAs) from 18 months to 6 months and lowering the cap on temporary foreign workers from 30% to 20%. These changes are part of a broader effort to return the program to pre-pandemic levels.
On August 20, 2024, the Government of Canada approved Quebec’s proposal to temporarily freeze new approvals of Temporary Foreign Workers in the low-wage stream within Montreal. Starting September 3, 2024, Labour Market Impact Assessment applications for jobs in the Montreal region with wages below $27.47/hour (the current median hourly wage in Quebec) will be halted for six months.
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