Breaking News: Changes to Canada's Temporary Foreign Worker Program
Canada has announced significant changes to its Temporary Foreign Worker Program (TFWP) in response to evolving labor market needs. Immigration Minister Marc Miller and Employment Minister Randy Boissonnault unveiled these changes, marking a shift from pandemic-induced temporary measures aimed at addressing labor market challenges.
Gurmeet Sharma
With the gap between job vacancies and unemployment narrowing, reflecting a tightening labour market, Minister Boissonnault emphasized the need to recalibrate the program. Accordingly, certain temporary measures put in place during the pandemic are being reversed.
The TFWP, designed to fill labor market gaps with foreign nationals, requires Canadian businesses to obtain a Labour Market Impact Assessment (LMIA) demonstrating a lack of qualified local candidates. As of May 1st, 2024, the validity period of an LMIA will revert to 6 months from the extended 12-month period introduced during the pandemic. Notably, this change will not affect employers participating in the Recognised Employer Pilot program.
Moreover, a cap on low-wage TFWP workers is being reinstated, limiting them to 20% of a Canadian business' workforce. Although during the pandemic, this cap was temporarily raised to 30% for select sectors, effective May 1st, 2024, only the construction and healthcare industries will retain this extended cap. However, exemptions for the agricultural sector and seasonal employers will remain unchanged.
These adjustments align with Canada's broader efforts to fortify the integrity of its immigration system, a cornerstone of its economy. Recent initiatives include capping study permits and revising the Post-Graduation Work Permit (PGWP) program in response to a surge in international student numbers deemed unsustainable.
Immigration Minister Marc Miller emphasized the need to reduce Canada's temporary resident population, which reached 2.5 million or 6.2% of the total population in 2023. The goal is to decrease this figure to 5% over the next three years, ensuring newcomers' successful integration and access to necessary services. Ultimately, Canada aims to establish a well-managed, sustainable immigration system that aligns with the nation's evolving needs.
