The Temporary Foreign Worker (TFW) Program in Canada was initially established as a contingency plan to be utilized only when qualified Canadian citizens and permanent residents could not fill job openings.
Unfortunately, the TFW Program has frequently been exploited to bypass hiring skilled domestic workers. Consequently, earlier this month, Minister Randy Boissonnault convened with business organizations to notify them that the Government of Canada is contemplating restricting access to the TFW Program. Additionally, enhanced compliance measures are being considered.
To address the current labor market conditions and further minimize Canadian employers’ dependence on the TFW Program, Minister Boissonnault, the Minister of Employment, Workforce Development, and Official Languages, announced today that the government is intensifying efforts to eliminate misuse and fraudulent activity within the program.
Effective by September 26, 2024, the following regulations will be implemented in response to the current employment landscape:
- The Government of Canada will no longer process Labour Market Impact Assessments (LMIAs) under the Low-Wage stream in census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be provided for seasonal and non-seasonal roles within food security sectors (primary agriculture, food processing, and fish processing), as well as the construction and healthcare industries;
- Employers will be restricted to hiring a maximum of 10% of their total workforce through the TFW Program. This employment cap applies to the Low-Wage stream and is a stricter regulation compared to the reduction planned for March 2024. Exceptions will be available for seasonal and non-seasonal roles in food security (primary agriculture, food processing, and fish processing), as well as for healthcare and construction jobs; and
- The maximum employment period for workers hired under the Low-Wage stream will be decreased to one year (from the previous two years).
Statement from Minister of Employment on Temporary Foreign Worker Program
“The Temporary Foreign Worker program was initially established to mitigate labor market gaps that could not be filled by qualified Canadians. Currently, we see an increased number of Canadian workers who can occupy these roles. Therefore, the adjustments we are implementing will prioritize Canadian employees, instilling confidence that this program continues to serve our economy effectively.”
– Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages
Important Facts
- The most recent figures from the Labour Force Survey indicate that the unemployment rate has risen to 6.4% after two consecutive increases in May and June. Specifically, Canada’s unemployment rate edged up by 0.2 percentage points, reaching 6.4% in June 2024. Since April 2023, the unemployment rate has climbed by 1.3 percentage points. By June 2024, the number of unemployed individuals had grown by 42,000 (+3.1%) from the previous month, totaling 1.4 million.
- With a more relaxed labor market, the Government of Canada has started to retract pandemic measures designed to tackle an extraordinary labor shortage. Commencing in October 2023, the changes include a phased reduction of the validity period for Labour Market Impact Assessments (LMIAs) from 18 months to 6 months. Additionally, the cap on the percentage of temporary foreign workers has been lowered from 30% to 20%, moving the program closer to its pre-pandemic status.
- On August 20, 2024, the Canadian Government approved Quebec’s proposal for a provisional halt on new approvals of Temporary Foreign Workers in the low-wage sector in Montreal. Effective September 3, 2024, the processing of LMIA applications will be suspended for six months for job offers in Montreal with wages below $27.47 per hour, which is the current median hourly wage in Quebec.
