The Temporary Foreign Worker (TFW) Program was initially created as an extraordinary measure to be used only when qualified Canadians and permanent residents were unable to fill job vacancies. However, recent concerns have highlighted that the TFW Program has at times been misused, bypassing the hiring of talented workers already available in Canada.
In response to these concerns, Minister Randy Boissonnault of Employment, Workforce Development, and Official Languages recently met with business organizations to inform them of potential reductions in access to the TFW Program, alongside stronger compliance measures. These changes reflect the Government of Canada’s commitment to ensuring that Canadian workers are prioritized and that the TFW Program is used as intended.
New Changes Effective September 26, 2024
Given the current labour market conditions, the Government of Canada is taking decisive action to reduce employers' reliance on the TFW Program. The following changes will be implemented, effective September 26, 2024:
1. Refusal to Process LMIAs in Certain Areas:
Labour Market Impact Assessments (LMIAs) in the Low-Wage stream will no longer be processed in census metropolitan areas where the unemployment rate is 6% or higher. Exceptions will be made for essential sectors such as primary agriculture, food processing, fish processing, construction, and healthcare.
2. Restriction on Hiring Through TFW Program:
Employers will now be allowed to hire no more than 10% of their total workforce through the TFW Program, specifically in the Low-Wage stream. This is a further reduction from the previous cap set in March 2024. Exceptions will apply to essential sectors as mentioned above.
3. Reduction in Maximum Duration of Employment:
The maximum duration of employment for workers hired through the Low-Wage stream will be reduced from two years to one year.
Employers' Responsibility to Canadian Workers
Canadian employers have a crucial role in fostering the country's workforce. This involves investing in the vast pool of available workers, including young people, newcomers, and persons with disabilities, who are often underutilized. Employers must also focus on retraining and upskilling their current employees to adapt to the evolving economy.
The Government of Canada remains committed to supporting businesses in finding the workers they need while ensuring that Canadian workers have access to the opportunities they deserve. This includes providing support for training and education initiatives.
Ongoing Monitoring and Future Adjustments
The Government will continue to monitor labour market conditions and make further adjustments to the TFW Program as necessary. Over the next 90 days, a comprehensive review of the Program will be conducted, which may result in changes to the High-Wage Stream, existing LMIA applications, sectoral exceptions, or the processing of other LMIA applications, including those in rural areas.
Minister Boissonnault's Statement
Minister Boissonnault emphasized the importance of prioritizing Canadian workers, stating:
"The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy.”
These changes signify a critical step toward ensuring that the TFW Program aligns with its original intent and that Canadian workers are given the priority they deserve in today’s job market.
For more information or to discuss how these changes may impact your business or immigration plans, feel free to reach out to our team of experts.
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