Canada Halts Low-Wage LMIA Processing for Temporary Foreign Workers in Select Cities

Starting on September 26, 2024, new policies regarding LMIAs will take effect across Canada impacting the Temporary Foreign Worker Program (TFWP). The government has announced it will halt the processing of Labour Market Impact Assessments (LMIAs) in the Low-Wage category within certain census metropolitan areas (CMAs) where the unemployment rate equals or exceeds 6%. The specific cities this will affect have yet to be disclosed, but the Employment and Social Development Canada (ESDC) has made clear that there will be special considerations for jobs related to food security, like those in agriculture and food and fish processing. The construction and healthcare sectors will also see exemptions.

Employers will now face limitations on workforce composition, with a new cap stating that only 10% of their employees may be hired through the TFWP. Furthermore, workers brought in under the Low-Wage stream will be permitted to work for just one year instead of the previous allowance of two.

Canada’s Minister of Employment, Randy Boissonnault, has indicated the necessity of these measures, emphasizing the Temporary Foreign Worker program’s original intent – to fill employment gaps when there were no suitable Canadian candidates. Minister Boissonnault also highlighted the undesired dependence on the program and the critical need for empowering Canadian workers to meet job market needs.

Following a steady increase in the unemployment rate, currently sitting at 6.4%, these changes are introduced to prevent misuse of the TFWP and protect the Canadian labor market. In alignment with this approach, the ESDC will also be conducting a review of the High-Wage stream of the TFWP during the next 90 days, which might lead to additional alterations affecting various sectors and rural areas.

The government’s focus on temporary residency issues is reflective in recent policies, as seen with the Quebec government’s move to suspend the processing of some low-wage LMIA applications in Montreal. These policy shifts come with the broader objective of properly managing the impact of the temporary resident population on the country’s social services and resources, a sentiment echoed by both Employment Minister Boissonnault and Immigration Minister Marc Miller.

Conclusion:

The Canadian government is showing a strong commitment to labor market integrity and the well-being of its citizens by recalibrating the TFWP. The new set of rules is spearheaded by an effort to address concerns over employment fairness and a strategy to build a robust domestic workforce. As the landscape of Canadian immigration continues to evolve, employers and potential foreign workers must stay informed of the latest changes in emphasis on local employment priorities.

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