Canada Implements Stricter Rules on Temporary Foreign Worker Program to Boost Local Employment

The Canadian government, led by Minister Randy Boissonnault, has announced significant changes to the Temporary Foreign Worker (TFW) Program. The TFW Program was originally designed to be a last-resort option for employers when qualified Canadians and permanent residents were not available to fill job vacancies. However, concerns have arisen that the program has been used improperly, bypassing Canadian talent.

To address these concerns and adapt to current labour market conditions, the government is introducing stricter regulations on the TFW Program, effective September 26, 2024. These changes are aimed at reducing reliance on temporary foreign workers and ensuring that Canadian workers are prioritized.

Key Changes to the TFW Program:

1. Stricter Processing Rules: The government will no longer process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream for areas with an unemployment rate of 6% or higher. Exceptions will be made for jobs in essential sectors such as food security (agriculture, food processing, and fish processing), construction, and healthcare.
2. Reduced Quota for Foreign Workers: Employers will be restricted to hiring no more than 10% of their total workforce through the TFW Program in the Low-Wage stream, further reducing the previous cap. Exceptions will again apply to essential sectors.
3. Shortened Employment Duration: The maximum employment duration for workers in the Low-Wage stream will be reduced from two years to one year.
   
   

These measures are part of a broader effort to encourage Canadian employers to invest in local talent, including young people, newcomers, and persons with disabilities. The government emphasizes the importance of upskilling and retraining existing workers to meet future economic demands.

Ongoing Monitoring and Future Adjustments

The government will continue to monitor the labour market and may introduce additional changes to the TFW Program in the coming months. A review within the next 90 days could lead to further adjustments, including changes to the High-Wage Stream, existing LMIA applications, and sectoral exceptions.

Statement from Minister Boissonnault

“The Temporary Foreign Worker program was designed to address labour shortages when qualified Canadians were not available. Now, with more qualified Canadians ready to work, our focus is on ensuring that Canadian workers are prioritized. These changes are essential to maintaining the integrity of the program and supporting our economy,” said Minister Randy Boissonnault.

Quick Facts:

• Canada's unemployment rate has risen to 6.4% as of June 2024, with 1.4 million people unemployed.
• The government has been rolling back pandemic-era measures that expanded the TFW Program, aiming to return the program to pre-pandemic levels.
• Quebec has also taken steps to limit the use of temporary foreign workers in the low-wage stream, with a temporary freeze on new approvals in the Montreal region.
  
  

These changes reflect the government’s commitment to ensuring that the TFW Program is used appropriately and that Canadian workers are given the first opportunity to fill available jobs.