Canada Updates Temporary Foreign Worker Program to Reflect Current Labor Market Conditions
Canada’s Ministers for Immigration and Employment, Marc Miller and Randy Boissonnault, have announced updates to the Temporary Foreign Worker Program (TFWP) to more accurately align with the nation’s labor market demands.
In response to the pandemic, Canada had implemented a series of temporary measures to mitigate labor market strains. Now, with the economic landscape evolving, the government is rolling back these temporary adjustments. Minister Boissonnault highlighted the changing economic scenario, noting the narrowing gap between unemployment rates and job vacancies and a tighter labor market as key factors driving the decision to retract some of the pandemic-era measures.
The TFWP enables employers in Canada to hire foreign nationals to address labor shortages, contingent on demonstrating through a Labour Market Impact Assessment (LMIA) that no qualified Canadians or permanent residents are available for the job.
Initially extended during the pandemic, the validity of an LMIA was increased to 12 months. Starting May 1, 2024, this period will revert to its original duration of 6 months, though this adjustment will not affect employers participating in the Recognized Employer Pilot program.
Additionally, the program had temporarily allowed certain sectors to have up to 30% of their workforce comprised of low-wage workers through the TFWP. Moving forward, as of May 1, 2024, only the construction and healthcare sectors will be permitted to maintain up to 30% of their workforce through low-wage TFWP permits.
The exemption cap for the agricultural sector and seasonal employers regarding this workforce composition will continue as before.
These modifications are part of Canada’s broader initiative to fortify the integrity of its immigration system and manage its economic implications. This comes alongside other recent changes, including the imposition of a cap on study permits and alterations to the Post-Graduation Work Permit (PGWP) program, amid concerns over the rapid increase in international student numbers.
Immigration Minister Marc Miller addressed the significant growth in Canada’s temporary resident count, which reached approximately 2.5 million or 6.2% of the population in 2023. The government aims to reduce the temporary resident population to 5% over the next three years, focusing on setting up every new resident for success and ensuring access to necessary services. Minister Miller emphasized the goal of maintaining a sustainable and needs-based immigration system.
