Significant changes to Canada’s Temporary Foreign Worker (TFW) program are now in effect, impacting both employers and workers. As of August, Employment and Social Development Canada (ESDC) has introduced several reforms aimed at managing the use of temporary foreign labour, especially in regions facing high unemployment.
Key Changes to the TFW Program:
Labour Market Impact Assessments (LMIAs) and High Unemployment Regions: Effective immediately, the federal government will no longer process LMIAs for positions in the low-wage stream of the TFW program in areas where the unemployment rate is 6% or higher. This measure is intended to prioritize local workers in regions with elevated unemployment, ensuring that job opportunities are first offered to Canadians.
Reduced Cap on TFW Workforce: Employers in the low-wage stream of the TFW program are now restricted to hiring no more than 10% of their workforce through the program. This is a reduction from the previous limit of 20%. The intent is to encourage businesses to invest in and hire local talent, with the cap ensuring greater reliance on the domestic labour force.
Shorter Employment Period for Low-Wage TFWs: Temporary foreign workers employed in low-wage roles can now only work for a maximum of one year, down from the previous two-year limit. This change is meant to create more turnover and opportunities for Canadians in these positions.
Who is Affected by These Changes?
These adjustments primarily impact employers and workers involved in the low-wage stream of the TFW program, where wages are lower than the median hourly rate in the province or territory. However, certain sectors, including agriculture, food processing, construction, and healthcare, may be exempt from some of these rules due to their essential nature and seasonal demands.
Additionally, a freeze on new LMIA applications for low-wage positions has been implemented in Montreal, affecting jobs paying below the province’s median hourly rate of $27.47. This freeze is expected to lift in March of next year.
Why Are These Changes Happening?
The federal government has been gradually tightening eligibility for the TFW program to address the changing needs of Canada’s labour market. Following years of significant growth in the number of temporary work and study permit holders, the recent rise in unemployment has led the government to roll back certain pandemic-era provisions.
These latest adjustments are part of a broader effort to ensure that the TFW program serves its original purpose—filling labour shortages when qualified Canadian workers are not available—while protecting the interests of Canadian job seekers.
Employment Minister Randy Boissonnault emphasized, “The changes we are making today will prioritize Canadian workers and ensure the program is meeting the needs of our economy.”
Looking Ahead
The federal government will continue to monitor labour market conditions and expects to conduct a comprehensive review of the TFW program by the end of the year. Future changes may extend to the high-wage stream of the program, and could introduce new restrictions affecting rural areas not previously covered.
For employers and workers navigating these changes, our team at [Firm Name] is here to help. Whether you’re an employer seeking advice on how these updates affect your LMIA applications or a worker concerned about your status in Canada, contact us today for guidance tailored to your situation.
