The Government of Canada, led by Minister Randy Boissonnault, has announced significant changes to the Temporary Foreign Worker (TFW) Program to reduce misuse and over-reliance on foreign labor. The TFW Program, initially designed as a temporary measure to fill job vacancies when no qualified Canadians or permanent residents are available, has seen instances of misuse where it was used to bypass hiring local talent.
Key Changes Effective September 26, 2024
- Refusal to Process LMIAs in High-Unemployment Areas:
The government will not process Labour Market Impact Assessments (LMIAs) for the Low-Wage stream in census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be made for seasonal and non-seasonal jobs in food security sectors (such as agriculture, food processing, and fish processing), as well as in construction and healthcare. - Reduction in TFW Hiring Quota:
Employers will be limited to hiring no more than 10% of their workforce through the TFW Program, a reduction from the previous limit. This restriction applies to the Low-Wage stream, with exceptions for sectors crucial to food security, healthcare, and construction. - Shortened Employment Duration:
The maximum employment duration for workers hired through the Low-Wage stream will be shortened from two years to just one year. This measure aims to motivate employers to focus more on hiring and developing local talent.
Encouraging Local Talent Investment
These changes are aimed at encouraging Canadian employers to prioritize local talent, such as young people, newcomers, and persons with disabilities, and to invest in retraining and upskilling their workforce. The government stresses that employers must fully utilize the available domestic labor pool before turning to foreign workers.
Looking Ahead
The Government of Canada will continue monitoring labor market conditions and may introduce further adjustments to the TFW Program. A review within the next 90 days could lead to additional changes, including potential adjustments to the High-Wage stream and existing LMIA applications.
These new rules reflect the government’s commitment to ensuring that the TFW Program is a last-resort option, protecting Canadian jobs while still meeting genuine labor market needs.
For further details, please refer to the official release from Employment and Social Development Canada.
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