Changes to Temporary Foreign Worker Program | Canada Immigration Guide
Recent updates have been made to Canada’s Temporary Foreign Worker Program. Canada’s Temporary Foreign Worker Program helps to overcome labour shortages in a variety of areas by allowing businesses to hire talented workers from other countries when local talents are in short supply. Recent changes to the program aim to improve openness and justice while ensuring that both Canadian workers and employers benefit equally.
The Canadian government has announced adjustments to this program.
Changes in Labour Market Impact Assessment
New LMIAs will have a six-month validity period starting May 1, 2024, down from the previous year. This change guarantees that companies and policymakers have access to more up-to-date data on labour market needs, allowing them to make educated decisions about workforce planning and recruitment initiatives.
Reduction in TFWP
Employers mentioned in the 2022 Workforce Solutions Road Map will see a drop from 30% to 20% of their total workforce eligible for the Temporary Foreign Worker Program, notably in the low-wage stream.
Exceptions are made for important industries like construction and healthcare.
Furthermore, companies are encouraged to exhaust all local options before utilizing the TFW Program.
Annual Wage Review for Temporary Foreign Worker
Employers have performed yearly wage reviews for temporary foreign workers since January 1, 2024, to ensure consistency with prevailing wage rates in their relevant occupations and regions of work. These assessments ensures that foreign workers receive equitable compensation during their employment. Wage adjustments are often made to match current rates.
Permanent Residence Through Domestic Draw
Marc Miller, Canada’s Immigration Minister, has revealed a significant proposal to make it easier for temporary residents already residing in Canada to get permanent residency. This concept involves “domestic draws,” which are similar to special selection rounds in programs such as Express Entry.
In these draws, qualified individuals will be selected based on variables such as job skills, job experience, and language abilities. The objective is to prioritize people who already contribute to Canada’s economy and society.
By doing so, Canada intends to make it easier for temporary residents to stay permanently, while also relieving pressure on key areas such as housing and healthcare.
What is TFWP?
TFWP stands for Temporary Foreign Worker Program. It is a Canadian program that permits firms to engage foreign workers on a temporary basis when there are insufficient local workers to fill open positions. The program aims to address temporary labour shortages in specific industries or regions of the country. Employers who want to hire foreign workers under the TFWP must acquire a Labour Market Impact Assessment (LMIA) to demonstrate that hiring a foreign worker would not have a detrimental impact on the Canadian labour market. The TFWP is administered by Employment and Social Development Canada (ESDC) and Immigration, Refugees, and Citizenship Canada (IRCC).
What is LMIA?
TFWP is Temporary Foreign Worker Program. The Canadian program allows enterprises to temporarily hire foreign workers when local workers are scarce. The initiative addresses short-term labour shortages in certain industries or locations. Employers who seek to engage foreign workers under the TFWP must usually get a Labour Market Impact Assessment (LMIA) to prove that it will not harm the Canadian labour market. Employment and Social Development Canada (ESDC) and IRCC run the TFWP.
Quotes
“Today, we announced our intention to reduce Canada’s reliance on temporary foreign workers while encouraging employers to find the talent they require right here at home.” The time-limited measures we implemented in 2022 were required since our labour market was experiencing unprecedented conditions; but, as times change, we must ensure that our Temporary Foreign Worker Program meets our present needs.”
The Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages.
“Our labour market demands are increasing, and so should our policies. Today’s statement prioritizes our country’s need for adequate construction workers to build homes, early childhood educators to educate our children, and health-care workers to treat patients. As we steadily lessen our reliance on temporary foreign workers, we will continue to assist employers in filling job gaps while supporting Canadian workers.
– The Honorable Marc Miller, Minister of Immigration, Refugees and Citizenship Canada.
Quick facts
The Temporary Foreign Worker Program adapts to labour market developments. It helps Canadian companies cover labour and skill gaps when Canadians and permanent residents are unavailable.
The 2022 Workforce Solutions Road Map covered seven sectors: food manufacturing (NAICS 311), wood product manufacturing (NAICS 321), furniture and related product manufacturing (NAICS 337), accommodation and food services (NAICS 72), construction (NAICS 23), hospitals (NAICS 622), and nursing and residential care facilities.
In February 2024, unemployment rose 0.1 percent to 5.8%. It has held steady at 5.8% for three of the last four months.
Job openings fell 25,400 (-3.6%) to 678,500 in the fourth quarter of 2023, the sixth straight quarter below the record high set in the second quarter of 2022 (983,600).
Budget 2022 proposes a new foreign labour program for agriculture and fish processing to give Canadian food producers steady and predictable labour and improve worker protections. Canada will engage with source nations to develop new Seasonal Agricultural Worker Program bilateral agreements, which will offer temporary foreign workers and employers year-round primary agriculture, seasonal fish, seafood, and primary food processing.
Budget 2021 committed $49.5 million over three years to a new Migrant Worker help program to address employer-worker power imbalances and help temporary foreign workers.
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