Canada plans to freeze processing of Labour Market Impact Assessments (LMIAs) for low-wage jobs in cities with an unemployment rate of 6% or higher; effective September 26, 2024.
An LMIA is a document that an employer in Canada may need before hiring a foreign worker.
This recent decision, as reported by Immigration News Canada, is part of broader changes to the Temporary Foreign Worker (TFW) Program aimed at reducing dependency on foreign workers and focusing on Canadian talent.
The TFW program, is a Canadian immigration option that permits individuals who are not Canadian citizens or permanent residents to work in Canada in roles experiencing labour shortages and not filled by Canadians.
A Plan To Invest In Local Workforce
According to the report, exceptions will apply to critical sectors such as primary agriculture, food processing, fish processing, construction, and healthcare. In these sectors, the government will continue to process LMIAs.
Also, employers will face a new 10% cap on the proportion of their workforce that can be hired through the TFW Program. This cap is a reduction from the 20% limit introduced in March 2024. And that maximum employment duration for low-wage stream workers will also be reduced from two years to one year, according to Immigration News Canada.
Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, highlighted the government’s aim to invest in the Canadian workforce. He stated,
“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 Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy.”
Employers are now encouraged to explore domestic talent pools, including young people, newcomers, and persons with disabilities.
The government also urges employers to invest in retraining and upskilling their current employees to adjust to the changing economic conditions.
The government has pledged to monitor labour market conditions closely and make further adjustments to the TFW Program as needed.
A review of the program is planned within the next 90 days, which may lead to modifications in the high-wage stream, sectoral exceptions, and processing of existing LMIA applications.
What You Should Know
These changes are part of the Canadian government’s efforts to reverse pandemic-era policies that were designed to address severe labour shortages.
As the unemployment rate increased to 6.4% in June 2024, the government began shortening the validity of LMIAs from 18 months to 6 months and reducing the cap on temporary foreign workers from 30% to 20%.
Further information reveals that, on August 20, 2024, a temporary freeze on new TFW approvals in the low-wage stream in Montreal was approved, effective September 3, 2024, for job offers with wages below $27.47 per hour.
This means that by next month, Montreal will temporarily stop approving new TFW applications for low-wage jobs that pay less than $27.47 per hour.
These measures taken by the government seek to prioritize Canadian workers in the job market. Further adjustments to the program are anticipated as the labour market continues to evolve.
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