Canada tightens employment of foreign workers, stop processing LMIAs from 09/2024
The Canadian government is enacting comprehensive reforms to the Temporary Foreign Worker Program (TFWP) amid rising concerns over its misuse and a shifting labor market landscape. As of September 2024, the government will significantly tighten regulations around the hiring of TFWs in low-wage positions, particularly in regions with higher unemployment rates. This is part of a broader strategy to ensure the program is used as intended—to fill genuine labor shortages when qualified Canadians are unavailable—and to reduce dependence on foreign labor while bolstering domestic employment opportunities.
Key Changes Effective September 26, 2024
1. Refusal to Process LMIA
In regions with an unemployment rate of 6% or higher, the government will refuse to process Labour Market Impact Assessments (LMIAs) for low-wage positions, except in essential sectors such as food security (primary agriculture, food processing, and fish processing), healthcare, caregiving, and construction. This policy will force employers to prioritize hiring Canadians in these areas, particularly where local unemployment is high.
2. Cap on TFWs
Employers will now be restricted to hiring no more than 10% of their total workforce through the Temporary Foreign Worker Program (TFWP)down from the previous cap of 20%. This is a further reduction from the 30% cap in place during the height of the pandemic. The reduction specifically targets the Low-Wage Stream, and is designed to encourage employers to seek out and invest in Canadian workers, including those from traditionally underrepresented groups such as young people, newcomers, and individuals with disabilities.
3. Reduction in Employment Duration
The maximum employment duration for low-wage TFWs will be shortened from two years to one year. This measure aims to limit the long-term dependency on foreign labor and create more opportunities for Canadian workers to fill these roles.
4. Regional and Sectoral Adjustments:
Specific measures are being introduced in regions with unique labor market conditions. For instance, in Montreal, there is a temporary freeze on approving new temporary foreign workers (TFWs) for low-wage jobs. This six-month freeze reflects the government's strategy to carefully manage the influx of temporary workers and ensure that local labor markets are not adversely impacted.
5. Focus on Domestic Workforce
The reforms are part of a larger governmental effort to reduce reliance on temporary foreign workers (TFWs) and encourage employers to focus on developing a more robust domestic workforce. This includes greater emphasis on retraining and upskilling existing employees to meet future labor market demands. By doing so, the government aims to create a more sustainable labor market that is less dependent on temporary foreign labor and more supportive of Canadian workers.
Prime Minister Justin Trudeau Supports The Reforms
Prime Minister Justin Trudeau has strongly supported these changes, underscoring the importance of prioritizing Canadian workers and ensuring that the Temporary Foreign Worker Program is not misused. He has highlighted the need for continued vigilance in monitoring labor market conditions and making further adjustments to the program as necessary. This includes potential future changes to the High-Wage Stream and other sectors of the TFW Program, as the government seeks to align the program more closely with Canada's evolving economic needs.
These measures also reflect a broader shift in the government's approach to labor market management. As the Canadian economy emerges from the pandemic, there is a renewed focus on reducing unemployment and creating more opportunities for Canadian workers. By tightening regulations on the Temporary Foreign Worker Program and encouraging greater investment in domestic talent, the government is taking decisive steps to ensure that the benefits of economic recovery are widely shared among Canadians.
In conclusion, the Canadian government’s new policies on the Temporary Foreign Worker Program represent a significant shift towards prioritizing domestic labor. These changes are designed to reduce dependence on foreign workers, encourage the hiring and training of Canadian workers, and ensure that the Temporary Foreign Worker Program is used as a tool to address genuine labor shortages, rather than as a permanent solution for filling low-wage jobs. As the government continues to monitor labor market conditions, further adjustments may be made to ensure that the program remains responsive to Canada’s economic needs while protecting the interests of Canadian workers.
English version: https://ttnimmigration.ca/vi/en/canada-that-chat-viec-tuyen-lao-dong-nuoc-ngoai-tu-choi-xu-ly-lmia-tu-thang-9-2024/
