Canada could reduce the number of work permits being issued through the High Wage Stream of the Temporary Foreign Worker Program as part of a review currently being undertaken by the federal government.
After recently announcing plans to limit the Low Wage Stream of the work permit program, Employment and Social Development Canada’s focus has now turned to the rest of the TFWP.
In an announcement on September 18, it said a review would take place within the next 90 days “which could result in changes to the High Wage Stream, to existing Labour Market Impact Assessment applications for which positions have not been filled, to sectoral exceptions, or refusing to process other LMIA applications, including for rural areas”.
Any changes will be made “to ensure that only employers with demonstrable labour market needs have access to the program”, ESDC said.
TFWP Low Wage Stream Changes
In the same announcement, Canada also provided more detail on the plans to limit the Low Wage Stream of the program, announced on August 26.
As of September 26, the following limits will be put in place:
- A Canada-wide 10 per cent employer cap on temporary foreign workers under the Low Wage Stream, including occupations that fall under the Traitement Simplifié in Quebec. The healthcare, construction, and food processing sectors will be permitted to keep a 20 per cent cap.
- All LMIAs approved for Low Wage Stream job will allow candidates to work for one year, except for occupations under the Primary Agriculture Stream.
- Canada will not process Low Wage LMIAs in all Census Metropolitan Areas (CMAs) with an unemployment rate of over 6 per cent, with exceptions for the healthcare, construction, and food processing sectors. This will be review quarterly, based on Labour Force Survey results.
“Employers in Canada have a responsibility to invest in the full range of workers available in this country, such as young people, newcomers, and persons with disabilities, who are too often an untapped economic resource in Canada,” the announcement said. “They must also invest in retraining or upskilling to ensure that those they currently employ can adapt to the economy of the future.”
Employment Minister Randy Boissonnault said: “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 Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy.”
What Has Canada Just Announced?
- Canada is reviewing the Temporary Foreign Worker Program (TFWP) and may reduce work permits in the High Wage Stream within 90 days.
- Limits on the Low Wage Stream take effect September 26, including a 10% employer cap, with exceptions in healthcare, construction, and food processing.
- Low Wage Labour Market Impact Assessments (LMIAs) won’t be processed in areas with unemployment over 6%, except in essential sectors.
- Changes aim to prioritize Canadian workers and address political pressure as public opinion shifts against immigration amid rising unemployment.
TFWP Rules Loosened During Pandemic
The TFWP is intended to allow employers to bring in workers from overseas to fill jobs that qualified Canadians are not available for. To make sure this is true, employers are required to conduct an LMIA, which, among other things, mandates that the job be properly advertised to Canadians.
During and after the pandemic, a number of the terms of the LMIA process were loosened to help employers during an acute labour shortage. With unemployment rising to 6.6 per cent in the latest Labour Market Survey, Canada is now rolling back those changes, including reducing the LMIA validity period back to six months from 18, and capping the percentage of temporary workers at 20 per cent instead of 30 per cent.
In August, Canada also allowed Quebec to stop processing new applications under the Low Wage Stream in Montreal. The measure took effect on September 3 and will last for six months, for all jobs paying below Quebec’s median wage of $24.47 an hour.
A series of other measures have also been announced as Canada looks to reduce its volume of temporary residents by 2027.
The decisions to limit temporary workers are very much politically motivated, with a federal election due by October 2025. Public opinion has turned against immigration, with polls suggesting people think Prime Minister Justin Trudeau has allowed the system to get out of control.
Trudeau knows that if he wants a third term in power, he needs to show that he has control of the immigration system. Immigration Minister Marc Miller is the man tasked with introducing that control, with a cap on numbers of international students at the centre of his policy action.
FAQ on Canada’s Review of the Temporary Foreign Worker Program
1. What changes is Canada considering for the High-Wage Stream of the TFWP?
Canada is reviewing the High-Wage Stream of the Temporary Foreign Worker Program (TFWP) to ensure only employers with proven labor market needs can access it. The review, expected within 90 days, may affect Labour Market Impact Assessments (LMIAs) for unfilled positions, sectoral exceptions, and certain rural applications. Changes could lead to stricter eligibility criteria for work permits under this stream, reflecting Canada’s evolving labor market priorities.
2. What recent limits have been introduced for the Low-Wage Stream of the TFWP?
As of September 26, 2024, Canada has imposed a 10% cap on temporary foreign workers in the Low-Wage Stream for most employers. Exceptions allow a 20% cap in the healthcare, construction, and food processing sectors. In areas with unemployment rates over 6%, new LMIAs for low-wage jobs will not be processed, except in the exempted sectors. This ensures that local workers are prioritized in hiring.
3. Why is Canada implementing these restrictions on the TFWP?
The government aims to prioritize Canadian workers for job openings, especially in sectors with rising unemployment. Minister Randy Boissonnault stated that Canadians must trust the TFWP to address labor market shortages only when qualified local workers are unavailable. This approach encourages employers to invest in training and retraining local workers, while maintaining a fair and controlled immigration system that meets economic needs.
4. How will changes to the LMIA process impact employers?
Employers using the Temporary Foreign Worker Program will face stricter requirements for LMIAs. Canada is reducing the LMIA validity period from 18 months to 6 months, capping temporary worker ratios, and requiring more robust efforts to hire locally. These adjustments aim to balance the demand for foreign labor with the availability of qualified Canadian workers, ensuring that the TFWP remains a supplement, not a substitute, for local employment.
5. How does public opinion influence changes to the TFWP?
Public sentiment plays a significant role in recent policy shifts. Polls suggest growing concern over immigration levels, prompting the government to tighten controls. With a federal election approaching in 2025, Prime Minister Justin Trudeau’s administration is acting to show it can manage immigration effectively. These measures, including limits on temporary workers, are part of broader efforts to address public opinion while maintaining a balanced labor market.
https://immigration.ca/canada-reviewing-high-wage-stream-of-temporary-foreign-worker-program/
