Gatineau, Quebec – August 26, 2024 – The Canadian Government has introduced important changes to the Temporary Foreign Worker Program, effective September 26, 2024. These Temporary Foreign Worker Program changes 2024 aim to curb misuse and better align the program with current labor market conditions. Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, detailed these updates today, emphasizing a shift towards prioritizing Canadian workers and reducing reliance on temporary foreign labor.
Key Changes to the Temporary Foreign Worker Program in 2024
- Restrictions on LMIA Processing for Low-Wage Stream – The Government will no longer process Labour Market Impact Assessments (LMIAs) for the Low-Wage stream in census metropolitan areas where the unemployment rate is 6% or higher. This decision is part of a broader strategy to curb misuse of the TFW Program and ensure it is utilized where genuinely needed. Exceptions to this restriction will be made for crucial sectors such as primary agriculture, food processing, fish processing, construction, and healthcare.
- Limit on Temporary Foreign Worker Hiring – In a move to further tighten the TFW Program, employers will now be limited to hiring no more than 10% of their workforce through the TFW Program in the Low-Wage stream. This cap represents a reduction from the previous 20% limit set in March 2024. The restriction is designed to encourage employers to invest more in hiring and training Canadian workers. However, exceptions will be made for sectors experiencing severe labor shortages, including food security, healthcare, and construction.
- Reduction in Employment Duration – Effective September 26, 2024, the maximum duration of employment for workers hired through the Low-Wage stream will be reduced from two years to one year. This change aims to prompt employers to seek longer-term solutions and invest in the development of the Canadian labor market.
Rationale Behind the Temporary Foreign Worker Program Changes
The Government’s decision to implement these changes to the TFW Program reflects a commitment to prioritize Canadian workers and address program misuse. Minister Randy Boissonnault highlighted that there are more qualified Canadians available for open positions, and these changes will help ensure that the program meets the needs of the economy by focusing on genuine labor market shortages.
Employers will be encouraged to invest in training and upskilling initiatives to better utilize the domestic workforce, including young people, newcomers, and individuals with disabilities. This shift aims to make better use of Canada’s untapped economic resources and ensure that Canadian workers have access to the opportunities they deserve.
Ongoing Review and Future Adjustments
The Government of Canada will continue to monitor labor market conditions and may introduce further adjustments to the TFW Program in the coming months. This ongoing review could lead to additional changes affecting the High-Wage Stream, existing LMIA applications, sectoral exceptions, or even rural area LMIA applications.
Context and Additional Measures
In addition to the upcoming changes, the Government has been progressively rolling back pandemic-related measures. These include reductions in LMIA validity periods and caps on temporary foreign workers. Furthermore, a recent proposal by the Government of Quebec has led to a temporary freeze on new TFW approvals for low-wage positions in Montreal, effective September 3, 2024.
Quick Facts
- Canada’s unemployment rate has increased to 6.4% as of June 2024.
- Recent adjustments to the TFW Program include reductions in LMIA validity and limits on temporary foreign workers.
- A temporary freeze on new TFW approvals in Montreal for low-wage positions starts September 3, 2024.
For further details and expert advice on navigating these changes, contact K.S Immigration today.