In a recent announcement on August 26th, Employment and Social Development Canada (ESDC) shared that it will temporarily halt the processing of Labour Market Impact Assessments (LMIAs) for low-wage positions under the Temporary Foreign Worker Program (TFWP). This suspension applies to employers located in Census Metropolitan Areas (CMAs) with unemployment rates at or above 6%.
A CMA is defined as an area with a minimum population of 100,000, including at least 50,000 residents in the core. While ESDC’s announcement focused on tightening oversight of the program, it did not specify the exact CMAs affected. However, data from Statistics Canada provides insight into which regions may be impacted, as they have unemployment rates equal to or exceeding the 6% threshold.
The following regions are among those with elevated unemployment rates:
- Abbotsford-Mission, BC (6.7%)
- Barrie, ON (6.2%)
- Calgary, AB (7.6%)
- Edmonton, AB (8.5%)
- Toronto, ON (8.6%)
- Windsor, ON (9.8%)
These figures suggest that these areas may be affected by ESDC’s recent policy, although the final list of impacted regions has yet to be confirmed.
This move comes in response to concerns about the over-reliance on temporary foreign workers, which some argue suppresses local wages and creates compliance issues with TFWP standards. The Canadian government has been gradually rolling back COVID-era policies related to temporary foreign workers, reflecting the changing labour market conditions post-pandemic.
Ministers have also emphasized the need to address housing and affordability challenges, which have been exacerbated by high levels of temporary residents.