As of September 26th, the federal government will no longer accept Labour Market Impact Assessments (LMIAs) within the low-wage stream of the Temporary Foreign Worker (TFW) program in areas of the country with an unemployment rate above 6%. The ability to source up to 20 percent of a business’s labor force from this specific low-wage stream will be capped at 10 percent. Low-wage TFWs will no longer be available for more than one year, whereas previously they could be used up for two years.
Who is Impacted?
These changes impact workers and employers in the low-wage stream, which includes jobs that pay less than the median hourly rate of the province or territory. Exceptions include principal industries such as agriculture, food processing, construction, and healthcare. LMIA applications are on freeze in Montreal as of January 3 and until March 3 for jobs paying less than the Quebec median hourly rate.
Why Is This?
It has squeezed in the noose on non-permanent immigration, further narrowing eligibility. The TFW caps have been brought down from 30 percent to 10 percent since last October.
Canada is rolling back the pandemic measures to address labor shortages as the labor market is easing. The employers are expected to invest in the local workforce.
In August, Employment and Social Development Canada said that unemployment was increasing to 6.4% latest.
Employment Minister Randy Boissonnault said that the program will focus on serving Canadian workers.
The government will also monitor labor market conditions closely and bring appropriate adjustment into effect. The program will be reviewed as a whole by the year-end. Future change might affect high-wage streams, unfilled LMIA, and people living in rural areas outside of a CMA. As of 2023, around 10 million Canadians lived outside of a CMA.
