Canada will stop processing Low-Wage LMIAs for the Temporary Foreign Worker Program

The Canadian government is taking a significant step to reduce the reliance on Temporary Foreign Workers (TFWs). In a recent announcement on August 26, 2024, Minister Randy Boissonnault revealed a series of changes to the Temporary Foreign Worker Program aimed at prioritizing Canadian workers and ensuring the program is used only when necessary.

Key Changes to the Program effective September 26, 2024:

1. Restrictions on Low-Wage Jobs: LMIAs (Labour Market Impact Assessments) for low-wage jobs in areas with an unemployment rate of 6% or higher will be denied, with exceptions for specific sectors like agriculture, food processing, construction, and healthcare.
2. Reduced Workforce Cap: Employers can now hire no more than 10% of their total workforce through the TFW Program, down from previous limits.
3. Shorter Employment Terms: The maximum duration for low-wage foreign workers has been reduced to one year.

In recent months, the overall unemployment rate has been increasing, which the government believes signals that now is the time to reduce the dependency on foreign workers and give Canadians a chance at securing employment. By limiting the use of foreign workers, the government hopes to encourage employers to invest in domestic talent and explore other strategies like retraining and upskilling their existing workforce.

How does this impact a Foreign Worker?

• Fewer Job Opportunities: With the new restrictions, it becomes harder to find low-wage jobs through the Foreign Worker Program, especially if you are looking to work in areas with higher unemployment rates.
• Shorter Employment Duration: Your work permit will be for just one year instead of two. This means you will need to plan ahead if you want to continue working in Canada after your permit expires.
• Increased Competition: As the government pushes Canadian employers to hire more local workers, there may be more competition for the jobs that are still available to foreign workers. You may need to improve your skills or look for work in sectors that are still actively hiring temporary foreign workers.

Minister Boissonnault's announcement marks a significant shift in the government's approach to immigration and labour market policy. By prioritizing Canadian workers and limiting the use of foreign workers, the government is sending a clear message that domestic talent should be valued and supported.