Canada Tightens Temporary Foreign Worker Program with New Restrictions
TL;DR
Employers in Canada may gain an advantage by upskilling or re-training existing workers to fill job vacancies instead of relying on the TFWP.
The government is reintroducing policies to restrict the ability of Canadian employers to hire low-wage temporary foreign workers, including a low-wage cap and shortened work permits.
Reducing the number of foreign workers in Canada is intended to stimulate the Canadian labour market and provide more opportunities for Canadian workers.
The government's recent announcements regarding changes to the TFWP have far-reaching consequences and represent a drastic reversal of previous government policy.
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The Canadian government has announced substantial changes to its Temporary Foreign Worker Program, introducing new restrictions that will reduce the number of foreign workers in the country. These modifications, effective September 26, 2024, respond to growing concerns about immigration levels during a housing and cost-of-living crisis. Minister of Employment, Workforce Development and Official Languages Randy Boissonnault has led these policy changes, which reintroduce three key restrictions on hiring low-wage temporary foreign workers.
The first measure reduces the cap on low-wage temporary foreign workers from 20% to 10% of an employer's workforce. This rollback of COVID-era policies aims to encourage businesses to prioritize hiring from the domestic labor market. The second change shortens work permits for low-wage temporary foreign workers to one year, down from previous longer-term options. This will require employers to apply for new Labour Market Impact Assessments more frequently, potentially every eight months when considering processing time for approvals.
The third major change involves the government refusing to process low-wage LMIAs in metropolitan areas with unemployment rates of 6% or higher, with exceptions for high-priority sectors including agriculture, food processing, construction, and healthcare. This policy resurrects similar rules that were revoked in 2022 during the post-pandemic recovery period. These changes represent a significant shift in Canada's immigration policy, reflecting a broader trend of tightening immigration controls in response to public sentiment.
For employers, these new regulations will necessitate reassessing their reliance on low-wage temporary foreign workers and their capacity to navigate the more frequent LMIA application process. Temporary foreign workers, especially those in low-wage positions, must reevaluate their circumstances as current permits approach expiration. The impact extends beyond individual workers and employers, potentially affecting various sectors of the Canadian economy. Industries that have traditionally relied heavily on temporary foreign workers, such as hospitality, retail, and certain manufacturing sectors, may face challenges maintaining their workforce under the new restrictions.
While the government frames these changes as necessary measures to address domestic employment concerns, critics argue they may lead to labor shortages in key industries and potentially slow economic growth. The balance between addressing public concerns about immigration levels and meeting the labor needs of Canadian businesses remains contentious. As implementation approaches, employers, workers, and policymakers will closely watch the effects on Canada's labor market and overall economy. For detailed information on these changes and their implications, interested parties can visit https://www.canadianvisalawyer.com.
Curated from 24-7 Press Release
