In the announcement, the Government of Canada has made new changes in the policy issued for the processing of LMIAs under the low-wage stream for the following metropolitan cities with a higher unemployment rate of 6%:
In addition, the Canadian government has declared a package of several crucial updates to the TFW Program which would decrease demand for foreign employees and promote Canadians.
This move has been prompted by rising incidences of abuse of the program and the evolving labour market trends characterised by high unemployment levels in the country.
Key Changes Effective September 26, 2024
Effective September 26, 2024, the Government of Canada will implement the following changes to the TFW Program.
Labour Market Impact Assessment (LMIA) Refusals in High Unemployment Areas: The government will not accept LMIAs under the Low-Wage stream for CMA Job for any CMA that has an unemployment rate of 6% or more.
But, employees will be allowed to transit to workplaces in sectors deemed essential in feeding the nation, including; Agriculture and its primary production, food production industries, fish production industries, construction industries and the health services industries.
10% Cap on Foreign Workers: Employer people will now be allowed to bring in only up to 10 % of their workers under the TFW Program as compared to 20% which was imposed starting March 2024.
An exception, of course, will apply to the same critical sectors highlighted earlier on.
Reduced Employment Duration: For instance, employment duration for the workers in the Low-Wage stream will be cut to one year from two years as it was before.
Government’s Focus on Canadian Workers
The minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault expressed the need to focus on the Canadian labour force.
“The Temporary Foreign Worker program was created to fill gaps in the labour market, which Canadians were unable to fill staffing needs. There are currently more Canadians interested in filling available positions – the changes being announced will prioritise the Canadian worker and instil confidence in Canadians that the program is being used to meet Canadian needs,” said Minister Boissonnault.
The Commission in Canada encourages employers to tap the hidden potential for economic returns in the country that include young people, newcomers and persons with disabilities.
Also, the government supports employers’ initiatives to train and develop their existing employees to meet the changing demands in the economy.
Monitoring and Future Adjustments
The Government of Canada will continue to monitor changes to labour market conditions; further adjustments to the TFW Program will be made accordingly.
Over the next 90 days, an assessment will take place that may result in amendments in the high-wage stream, sectoral exceptions, LMIA applications to be processed.
Rising Unemployment and Policy Adjustments
These changes are among many measures that the Canadian government is discussing in order to reverse numerous restrictions that were drawn in an attempt to counter an unprecedented shortage of workers.
With the unemployment rate reaching 6% of the total working population, it is evident that Canada’s labour market has become relatively flexible. 4% in June 2024, the government proceeded to decrease the validity period of LMIAs from 18 months to 6 months and the permissible limit of the share of TFWs from 30% to 20%.
Similarly, on August 20, 2024, the government of Canada granted in principle approval to the government of Quebec on the proposed moratorium for new TFW in the low-wage category in Montreal.
After September 3, 2024, LMIA applications will be temporarily prohibited for six months for employment opportunities in the Montreal area with a salary below $27. 47/hour, the median of the currently minimum hourly wage of Quebec.
Endnote
New measures by the Government of Canada confirm a high level of concern over the proper application of the TFW Program and the protection of the interests of Canadian workers in the labour market.
However, the constant change of the labour market requires future changes to the program in order to cater for the country’s economic needs.
Canada To Stop LMIAs in Low-Wage Stream Effective September 26
In the announcement, the Government of Canada has made new changes in the policy issued for the processing of LMIAs under the low-wage stream for the following metropolitan cities with a higher unemployment rate of 6%:
In addition, the Canadian government has declared a package of several crucial updates to the TFW Program which would decrease demand for foreign employees and promote Canadians.
This move has been prompted by rising incidences of abuse of the program and the evolving labour market trends characterised by high unemployment levels in the country.
Key Changes Effective September 26, 2024
Effective September 26, 2024, the Government of Canada will implement the following changes to the TFW Program.
Labour Market Impact Assessment (LMIA) Refusals in High Unemployment Areas: The government will not accept LMIAs under the Low-Wage stream for CMA Job for any CMA that has an unemployment rate of 6% or more.
But, employees will be allowed to transit to workplaces in sectors deemed essential in feeding the nation, including; Agriculture and its primary production, food production industries, fish production industries, construction industries and the health services industries.
10% Cap on Foreign Workers: Employer people will now be allowed to bring in only up to 10 % of their workers under the TFW Program as compared to 20% which was imposed starting March 2024.
An exception, of course, will apply to the same critical sectors highlighted earlier on.
Reduced Employment Duration: For instance, employment duration for the workers in the Low-Wage stream will be cut to one year from two years as it was before.
Government’s Focus on Canadian Workers
The minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault expressed the need to focus on the Canadian labour force.
“The Temporary Foreign Worker program was created to fill gaps in the labour market, which Canadians were unable to fill staffing needs. There are currently more Canadians interested in filling available positions – the changes being announced will prioritise the Canadian worker and instil confidence in Canadians that the program is being used to meet Canadian needs,” said Minister Boissonnault.
The Commission in Canada encourages employers to tap the hidden potential for economic returns in the country that include young people, newcomers and persons with disabilities.
Also, the government supports employers’ initiatives to train and develop their existing employees to meet the changing demands in the economy.
Monitoring and Future Adjustments
The Government of Canada will continue to monitor changes to labour market conditions; further adjustments to the TFW Program will be made accordingly.
Over the next 90 days, an assessment will take place that may result in amendments in the high-wage stream, sectoral exceptions, LMIA applications to be processed.
Rising Unemployment and Policy Adjustments
These changes are among many measures that the Canadian government is discussing in order to reverse numerous restrictions that were drawn in an attempt to counter an unprecedented shortage of workers.
With the unemployment rate reaching 6% of the total working population, it is evident that Canada’s labour market has become relatively flexible. 4% in June 2024, the government proceeded to decrease the validity period of LMIAs from 18 months to 6 months and the permissible limit of the share of TFWs from 30% to 20%.
Similarly, on August 20, 2024, the government of Canada granted in principle approval to the government of Quebec on the proposed moratorium for new TFW in the low-wage category in Montreal.
After September 3, 2024, LMIA applications will be temporarily prohibited for six months for employment opportunities in the Montreal area with a salary below $27. 47/hour, the median of the currently minimum hourly wage of Quebec.
Endnote
New measures by the Government of Canada confirm a high level of concern over the proper application of the TFW Program and the protection of the interests of Canadian workers in the labour market.
However, the constant change of the labour market requires future changes to the program in order to cater for the country’s economic needs.
Author: Sam Gill
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