The Government of Canada is adjusting the Temporary Foreign Worker Program to address changing labour market conditions and declining job vacancies. These changes aim to address the surge in demand for temporary foreign workers while prioritizing Canadian job seekers. The federal government plans to decrease the number of temporary residents to 5 % of the population over the next three years, down from the current 6.2 %. That would mean a decrease in the temporary resident population of roughly 19 percent. The first targets will be set in September. The announcement is the latest in a series of steps Immigration Minister, Marc Miller has taken in recent months to rein in rampant population growth.
Ottawa will for the first time include temporary residents in its annual immigration levels plan, which is expected to be released in the fall.
Key Changes Effective May 1, 2024:
- Reduced Validity of LMIs: Labour Market Impact Assessments (LMIAs) will now be valid for six months instead of twelve, ensuring accurate labour market needs.
- Workforce Percentage Reduction: Employers listed in the 2022 Workforce Solutions Road Map will see a decrease from 30% to 20% of their total workforce through the TFW Program, except for the construction and healthcare sectors. Seasonal industries, such as agriculture, fishing and tourism, are exempted from a cap during their peak seasons.
- Exploring Alternative Options: Employers must explore all options, including recruiting asylum seekers with valid work permits and underrepresented groups in Canada, before applying for LMIA . LMIA should be the last resort.
Moreover, as of January 1, 2024, employers are mandated to annually review wages of temporary foreign workers to align with prevailing wage rates, ensuring fair compensation.
Quick Facts:
- The TFW Program aims to address labour shortages when Canadian workers are unavailable, spanning various sectors.
- Recent economic indicators show a decline in job vacancies and a stable unemployment rate, influencing policy adjustments.
These measures demonstrate Canada’s commitment to balancing labour market needs with the protection of temporary foreign workers, contributing to a fair and equitable employment landscape.
