May 6th, 2024 at 07:32 am

New Changes to Canada Work Permit 2024 | Canada LMIA 2024

On May 1, 2024, Canada’s Temporary Foreign Worker Program experienced major modifications in response to changing labor market conditions. These changes seek to address serious labor shortages and strike a balance between the demands of Canadian industries for employment and the use of foreign workers under certain circumstances.

The Temporary Foreign Worker Program was updated by Canada, enabling firms to hire foreign nationals with a work permit upon receipt of a positive Labor Market Impact Assessment. The Employment and Social Development of Canada (ESD) conducts Labor Market Impact Assessments, or LMIAs, upon request from employers who are experiencing problems filling critical positions.

If an employer receives a positive labor market impact assessment (LMIA) and finds that they are unable to fill the post with a domestic candidate, they may choose to hire a foreign worker. Due to the then-record high number of open posts, ESDC implemented several measures after the epidemic.

The Canadian government modified the Temporary Foreign Worker Program in response to changing labor market conditions and a decline in job openings, ensuring that it is only used when there are no Canadians available to fill the required position. The country’s unemployment rate increased by 3% month over month in March to 61%.

Minister of Employment Randy Boyal declared on April 1, 2024, that the Workforce Solutions Roadmap, which was established in 2022, and some time-limited initiatives within the TFW program would not be extended and would conclude earlier than expected this spring.

What are the New Changes?

Therefore, from May 1, 2024, onward, labor market impact studies will only be valid for six months as opposed to twelve months to ensure accurate labor market demands. It is crucial to remember that while some people might mistake it for the validity of a work visa, this refers to the LMIA’s validity period, which is the amount of time that a business has to engage a foreign worker and submit an application for one.

Except for the construction and healthcare sectors, every industry included in the 2022 Workforce Solutions Roadmap will need to decrease the proportion of their total workforce that is eligible to apply for the Temporary Foreign Worker Program’s low-wage stream from 30% to 20%.

Employers must consider all of their options, including recruiting Asylum Seekers with legal work permits in this country, before filing an LMIA. Employers will now need to include asylum seekers on work permits in addition to the previous requirement that they demonstrate that they made a good faith effort to hire Canadian citizens and/or permanent residents.

Industries under the Workforce Solutions Roadmap 2022

Seven Industries were included in the Workforce Solutions Roadmap when it was published in 2022.

• Food manufacturing (NOC 311)
• Product manufacturing (NOC 321)
• Furniture and related product manufacturing (NOC 337)
• Accommodation and Food Services (NOC 72)
• Construction (NOC 23)
• Hospitals (NOC 622)
• Nursing and Residential Care Facilities (NOC 623)

Employers to Assess Salary for Temporary Foreign Workers in Canada

Before this, a significant law that required businesses to evaluate the compensation of temporary foreign workers annually went into effect on January 1, 2024. This is to ensure that it accurately represents modifications to the going rates in their specific field of expertise. Through pay increases, these assessments will guarantee that companies compensate temporary foreign workers at the going rate for the whole term of their employment.

What is the Temporary Foreign Worker Program (TFWP)?

Under the TFWP, Canadian employers are permitted to engage foreign nationals to temporarily cover labor and skill shortages if there are no competent Canadians available.

How many job openings are there in Canada?

January 2024 witnessed 632,000 job openings across all industries, a sharp decline from the record high of 983,600 posted in the second quarter of 2022.

Conclusion

By giving priority to domestic employment while addressing labor shortages, Canada has responded strategically to shifting economic conditions with recent changes to the Temporary Foreign Worker Program. These changes demonstrate the government’s dedication to promoting sustainable economic growth and assisting the Canadian Workforce. Remain educated to properly handle these shifts in workforce planning.