Measures to reduce number of temporary foreign workers

The Temporary Foreign Worker (TFW) Programme was introduced by the Canadian Government as a measure designed to assist with extraordinary labour shortages and the intention was that it should be used when qualified Canadian nationals or those with permanent residence were not available to fill roles.

On 26 August 2024, the government of Canada announced that the following changes to the Temporary Foreign Worker (TFW) programme will be implemented, effective by 26 September 2024:

• In census Metropolitan areas where there is an unemployment rate of 6% or higher, the government will refuse to process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream, except for for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare;
• Employers will not be able to employ no more than 10% of their total workforce through the TFW Program. This maximum employment percentage will be applied to the Low-Wage stream and is a further reduction from the March 2024 reduction. Again, exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as healthcare and construction; and
• There will be a maximum duration of employment for workers hired through the Low-Wage stream of one year.  (This a reduction from two years).

The Canadian Government will make a further review of the Program, which could result in changes to the High-Wage Stream, to existing LMIA applications for which positions have not been filled, to sectoral exceptions, or refusing to process other LMIA applications, including for rural areas. Such further review is set to take place within 90 days of the initial announcement.

For information and assistance on global immigration matters please contact [email protected] and [email protected]

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