Changes Announced to Temporary Foreign Worker Program
The Government of Canada has announced changes to the Temporary Foreign Worker (TFW) Program, effective September 26, 2024. These changes aim to reduce reliance on temporary foreign workers and ensure that Canadian employers prioritize hiring qualified Canadians.
Key changes include:
- Labour Market Impact Assessments (LMIAs): The government will refuse to process LMIAs in the Low-Wage stream for census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be made for food security sectors, healthcare, and construction.
- Employer Cap: Employers will be limited to hiring no more than 10% of their total workforce through the TFW Program in the Low-Wage stream. This is a reduction from previous caps, with exceptions for specific sectors.
- Employment Duration: The maximum duration of employment for workers hired through the Low-Wage stream will be reduced from two years to one year.
The government emphasized the responsibility of employers to invest in the domestic workforce, including young people, newcomers, and persons with disabilities. They will continue to monitor labor market conditions and may introduce further adjustments to the program as necessary. A review of the program is expected within the next 90 days, which could lead to additional changes in the High-Wage Stream and other LMIA applications.
These measures follow a broader trend of tightening the TFW Program, which has been under scrutiny for potential misuse and fraud. The government aims to ensure that the program serves its intended purpose of addressing genuine labor shortages in Canada.
