In 2024, Canada made big changes to its Temporary Foreign Worker Program (TFWP). This was a new plan for how the country handles jobs and includes workers from other countries.
These changes aim to meet the changing needs of the job market and make sure that hiring workers from other countries is balanced with the jobs available for Canadian workers.
Key Updates to the Temporary Foreign Worker Program
On May 1, 2024, Canada made big changes to the Temporary Foreign Worker Program because of serious job shortages. They wanted to balance the needs of Canadian businesses with hiring workers from other countries under certain rules.
Shortened Validity of LMIA: The Labor Market Impact Assessments (LMIA) will now be valid for six months instead of twelve. This change helps make sure that the job market conditions are shown correctly and quickly. This change is about how long the LMIA lasts, not how long the work visa lasts.
Inclusion of Asylum Seekers: Employers must now think about hiring asylum seekers who have legal work permits before they apply for an LMIA. This is in addition to the rule that they must try to hire Canadian citizens or permanent residents first.
Reduced Cap in Low-Wage Stream: For most jobs, except in construction and healthcare, the limit on the part of the total workforce that can use the TFWP’s low-wage stream has been lowered from 30% to 20%.
Annual Salary Assessments for Temporary Foreign Workers: A major rule was put in place on January 1, 2024, that makes businesses check the salaries of temporary foreign workers every year. This makes sure that their pay matches the current market rates in their jobs.
Overview of the Temporary Foreign Worker Program (TFWP)
The TFWP lets Canadian employers hire foreign workers to temporarily fill job and skill gaps when qualified Canadians are not available. This program is an important part of how Canada handles workforce needs in different sectors.
Economic Context
As of January 2024, Canada had 632,000 job openings in all industries. This is down from a record high of 983,600 in the middle of 2022. This drop shows how the job market and the economy are reacting to different world and local 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 planned response to labor shortages and the need to focus on jobs for Canadians. By changing policies and rules, Canada wants to support steady economic growth and help the Canadian workforce adjust 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.
Frequently Asked Questions (FAQs)
Q: What is a Labor Market Impact Assessment?
A: An LMIA is a check done by Employment and Social Development Canada to see how hiring a foreign worker affects Canada’s job market. If the LMIA is positive, it means a foreign worker is needed because no Canadian worker can do the job.
Q: How long is the LMIA valid under the new rules?
A: As of May 1, 2024, the LMIA is valid for six months, reduced from the previous twelve months.
Q: Are there any sectors exempt from the reduced cap in the TFWP’s low-wage stream?
A: Yes, the construction and healthcare sectors are exempt from the new rule reducing the cap from 30% to 20%.
Q: What does the annual salary assessment for temporary foreign workers entail?
A: This assessment requires employers to review and adjust the salaries of temporary foreign workers each year to ensure they are paid according to the current market rates in their field.
Q: How can employers comply with the new requirement to consider asylum seekers?
A: Employers must demonstrate that they have included asylum seekers with legal work permits in their recruitment efforts before applying for an LMIA.
By remembering these updates, both employers and foreign workers can better understand and move through the changing job market and Temporary Foreign Worker Program in Canada.