From September 26th, some census metropolitan areas (CMAs) in Canada will cease to be able to submit Labour Market Impact Assessments (LMIAs) to the Temporary Foreign Worker Program’s (TFWP) Low-Wage stream. In CMAs with an unemployment rate of 6% or above, Employment and Social Development Canada (ESDC) cannot process LMIAs in the Low-Wage stream. However, no more information about which cities would be affected is available.
The agency does point out that there will be an exemption for both seasonal and non-seasonal work in the construction and healthcare industries, plus the primary agricultural, food processing, and seafood processing sectors related to food security. Additionally, the TFWP will only allow firms to hire up to 10% of their entire workforce, and workers employed under the Low-Wage stream will only be able to work for a maximum of one year instead of two years.
Verdict from the minister of employment
According to Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, Canada has been depending too much on the program. He claims that when competent Canadians could not fill such positions, they created the Temporary Foreign Worker program to alleviate labor shortages. However, more Canadians now meet the requirements to fill available jobs. As such, the adjustments will prioritize Canadian workers and guarantee that the program satisfies their economic demands.
The Labour Force Survey indicates that from April 2023, the unemployment rate in Canada has been gradually rising. As of June 2024, the current unemployment rate was 6.4%. It amounts to 1.4 million jobless individuals. The Minister asserts that these additional limitations would aid in weeding out TFWP misuse and fraud. To guarantee that present workers can adjust to changing demands in the workplace, he also points out that Canadian firms should retrain and upskill their workforce. It reduces the dependency on the TFWP to prioritize more on Canadian citizens.
What to expect from the ESDC?
Over the following 90 days, ESDC will assess the TFWP’s High-Wage stream. According to the Ministry, this may lead to adjustments to current LMIA applications for unfilled posts, adjustments to sectoral exceptions, or even the rejection of processing new LMIA applications, including those for rural regions.
The TFWP is a popular option for immigrants seeking work experience in Canada. To participate in the program, employers should submit an LMIA to ESDC indicating whether employing a foreign national would benefit, neutralize, or harm Canada’s labor market and economy. Currently, the TFWP has two streams: low-wage and high-wage. Jobs that pay below the median hourly rate in a province are within the low-salary category.
