In 2024, Canada’s Temporary Foreign Worker Program (TFWP) underwent significant changes, marking a strategic shift in the nation’s approach to employment and the integration of foreign workers.
These changes are designed to address the evolving labor market needs and ensure that the employment of foreign nationals is balanced with the availability of Canadian workers.
Key Updates to the Temporary Foreign Worker Program
On May 1, 2024, Canada introduced major modifications to the Temporary Foreign Worker Program in response to serious labor shortages and the need to balance the demands of Canadian industries with the employment of foreign workers under specific conditions.
Shortened Validity of LMIA: The Labor Market Impact Assessments will now have a validity of six months, reduced from twelve months. This change ensures that the labor market conditions are accurately reflected in a timely manner. It’s important to note that this pertains to the LMIA’s validity, not the duration of the work visa itself.
Inclusion of Asylum Seekers: Employers are now required to consider asylum seekers with legal work permits as potential employees before filing an LMIA. This is in addition to the existing requirement to demonstrate efforts to hire Canadian citizens and/or permanent residents.
Reduced Cap in Low-Wage Stream: For most industries, except construction and healthcare, the cap on the proportion of the total workforce that can apply for the TFWP’s low-wage stream has been reduced from 30% to 20%.
Annual Salary Assessments for Temporary Foreign Workers: A significant regulation requiring businesses to assess the salaries of temporary foreign workers annually was implemented on January 1, 2024. This ensures that wages are aligned with the current market rates in their respective fields.
Overview of the Temporary Foreign Worker Program (TFWP)
The TFWP allows Canadian employers to hire foreign nationals to fill labor and skill shortages temporarily when qualified Canadians are unavailable. This program is a crucial part of Canada’s strategy to manage workforce needs in various sectors.
Economic Context
As of January 2024, Canada had 632,000 job openings across all industries, a decline from the record high of 983,600 in the second quarter of 2022. This decrease reflects changes in the labor market and the economy’s response to various global and domestic factors.
Industries Affected
The 2022 Workforce Solutions Roadmap included several key industries where changes will be particularly impactful:
- 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)
These sectors will need to adjust their hiring practices and workforce planning to comply with the new regulations.
Conclusion
The recent changes to Canada’s Temporary Foreign Worker Program are a strategic response to labor shortages and the need to prioritize domestic employment. By adjusting policies and requirements, Canada aims to support sustainable economic growth and assist the Canadian workforce in adapting to these changes.
Stay informed and prepared to navigate these changes in workforce planning by following updates on work permits, visa processes, paths to permanent residency, and visa-sponsored employment.
