Canada’s government has announced that, starting September 26, 2024, it will no longer process Labour Market Impact Assessments (LMIAs) for low-wage positions within the Temporary Foreign Worker Program (TFWP) in certain census metropolitan areas (CMAs). This decision comes as part of an effort to prioritize Canadian workers in areas with an unemployment rate of 6% or higher.
Employment and Social Development Canada (ESDC) will restrict the processing of LMIAs in these areas, although exceptions will be made for sectors crucial to food security, such as agriculture and food processing, as well as for construction and healthcare jobs. Additionally, employers will be limited to hiring a maximum of 10% of their workforce through the TFWP, and the maximum duration for workers employed in low-wage positions will be reduced to one year.
Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, explained that Canada has relied too heavily on the TFWP, especially as more Canadians are now qualified to fill available jobs. These changes aim to ensure that the program better serves the needs of the Canadian economy and reduces misuse and fraud.
Canada’s unemployment rate has risen to 6.4% in June 2024, signaling the need for these adjustments. The government emphasizes that employers should focus on retraining and upskilling existing employees to meet future workplace demands. The TFWP’s high-wage stream will also undergo a review in the coming months, which could result in changes to some LMIA applications.
In addition to these changes, Quebec Premier François Legault recently announced restrictions for the Montreal region, suspending the processing of certain low-wage LMIA applications starting September 3, 2024, for six months. This is in line with the federal government’s broader approach to address temporary foreign worker issues.
These measures are part of a larger plan to manage temporary resident levels in Canada and to ensure that the TFWP is used effectively, while curbing the exploitation of temporary foreign workers.