Most industries are bumping their workforce requests to prevent any possible labor shortages. This is especially the case in hospitals that are just starting to operate at full capacity and have not fully recovered from the pandemic. Employment growth is happening faster than population growth, owing to the low birth rate in Canada. This year the employment rate rose by 73,000 as of March.

Canada’s first signs of improvement in the unemployment rates were recorded in September 2021. Since then, the unemployment rates have experienced steady gains culminating in the record low rates in March 2022. In contrast, the employment rate has gone up 2.4%, which is staggering compared to the working population growth, which only grew by 0.8%. The slow population growth and fast-growing employment rates leave the federal government with little choice but to open the way for foreign workers to work in the country before a more permanent solution is reached.

Opening Canada’s doors to the international talent pool will also ease any pending labor shortages. Plans are already underway to allow foreign workers temporary residence to address workforce shortages. One such plan is the increase Labour Market Impact Assessment validity period. International talent can stay in the country for two years while employed. However, they have to prove they are not taking a Canadian worker’s job.

In addition, employers are now allowed to hire as many TFWPs as necessary. All previous limitations on employers have been erased. Two new rules are expected to come into effect as of April 30. One of the rules will remove the limit on the number of foreign employees an employer can have at a go in some parts of Canada, where the unemployment rate is still at 6.6%. To help reduce this number, the federal government intends to cancel automatic denials for low-wage occupations.

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