Major Changes to Canada’s TFWP | Canada PR | Canada Immigration 2025

In 2024, Canada’s federal government implemented significant changes to the Temporary Foreign Worker Program (TFWP). These updates aim to address labor market needs while refining immigration processes. Here’s an overview of the key modifications made to the TFWP.

Reduced LMIA Validity

Starting May 1, 2024, the validity of the Labor Market Impact Assessment (LMIA) returned to six months. The government had temporarily extended this period to twelve months during the pandemic. Immigration Minister Marc Miller and Employment Minister Randy Boissonnault announced this change. Employers in the Recognized Employer Pilot program remain exempt from this update.

End of Visitor Work Permit Applications

On August 28, 2024, the Immigration, Refugees and Citizenship Canada (IRCC) ended a temporary policy. This policy allowed visitors to apply for certain work permits from within Canada.

Originally introduced as a COVID-19 measure, this policy was set to expire on February 28, 2025. Now, many visitors must leave Canada before applying for work permits, including those under the TFWP.

Suspension of Low-Wage LMIA Processing

On August 26, the government announced a suspension of processing LMIAs for low-wage positions in census metropolitan areas (CMAs) with unemployment rates of 6% or higher. This change took effect on September 26, 2024. However, exceptions apply for seasonal and non-seasonal jobs in food security sectors, such as agriculture and healthcare.

Quebec implemented similar measures, halting LMIA processing for low-wage roles in CMAs with high unemployment. This rule also took effect on September 26, 2024, and targets positions paying below the Quebec median hourly wage of CAD 27.47.

Shortened Employment Duration for Low-Wage Workers

Effective September 26, 2024, the maximum employment duration for low-wage stream workers decreased from two years to one year. This change aims to provide more flexibility in addressing labor needs.

Workforce Composition Limits

The allowable percentage of low-wage workers in Canadian businesses has seen significant changes. In 2022, the cap temporarily increased to 30% for certain sectors. However, the cap returned to 20% on May 1, 2024. Only the construction and healthcare sectors can retain a 30% cap. As of September 26, 2024, the cap was further reduced to 10% for all low-wage streams.

Attestation Policy Update

Beginning October 28, 2024, employers can no longer use attestations from specific professionals as proof of providing goods or services. This includes lawyers, CPAs, and financial institution officials.

Increased Wage Requirements for High-Wage Stream

On October 22, 2024, Employment and Social Development Canada (ESDC) raised the minimum wage requirements for the high-wage stream. Effective November 8, candidates must earn at least 20% above the regional median wage or match the wages of current employees in similar roles.

Annual TFWP Work Permit Targets

For the first time, the Immigration Levels Plan announced on October 24 set specific targets for temporary resident admissions. The TFWP aims for 82,000 new work permits annually over the next three years. This initiative aligns with the government’s goal to reduce temporary residents as a proportion of Canada’s population from 7% to 5% by 2026.

Future Changes Review

In 2024, the Standing Committee on Citizenship and Immigration held meetings about the TFWP. They submitted a report recommending future changes to enhance the program.

Conclusion

These updates reflect Canada’s commitment to refining its immigration policies. By addressing labor market needs and enhancing the TFWP, the government aims to create a more responsive and effective immigration system for 2025 and beyond.