Major Changes to Canada’s Temporary Foreign Worker Program (TFWP) in 2024: A Year in Review

In 2024, the federal government introduced several significant updates to the Temporary Foreign Worker Program (TFWP) to address labor market needs while improving program efficiency. Here's a breakdown of the major changes and their impact.

Key Changes to the TFWP in 2024

Detailed Overview of Changes

1. Reduction in LMIA Validity

Employers seeking to hire temporary foreign workers must submit a Labour Market Impact Assessment (LMIA) to prove the necessity of hiring foreign workers. As of May 1, 2024, the validity of an LMIA has reverted to six months, down from the extended 12-month validity implemented during the pandemic.

Exception: Employers in the Recognized Employer Pilot program are not impacted by this change.

2. End of Visitor Work Permit Policy

A temporary COVID-era policy that allowed visitors in Canada to apply for work permits ended on August 28, 2024. Moving forward, visitors must leave Canada before applying for job-supported work permits.

3. Suspension of Low-Wage LMIA Processing

LMIAs for low-wage streams are no longer processed in areas with unemployment rates of 6% or higher. Exceptions apply to critical sectors, including agriculture, food processing, construction, and healthcare.

Quebec implemented a similar measure, halting LMIA processing for jobs below the province's median hourly wage in Montreal. This temporary suspension is expected to last until March 3, 2025.

4. Shortened Employment Duration in Low-Wage Stream

The maximum duration of employment for workers in the low-wage stream has been reduced to one year, effective September 26, 2024. This measure aligns with broader efforts to manage temporary labor more effectively.

5. Workforce Composition Caps

In 2024, caps on the percentage of low-wage workers a business can employ were reduced:

• 10% cap for most businesses.
• 20% cap for construction and healthcare sectors.

These caps aim to balance the reliance on foreign labor while addressing skill shortages in essential industries.

6. Attestations No Longer Accepted

As of October 28, 2024, employers cannot use attestations from professionals (e.g., lawyers, CPAs) as proof of providing goods or services. Alternative documentation is now required to meet eligibility criteria.

7. Increased Wage Requirements for High-Wage Stream

On November 8, 2024, new wage thresholds came into effect. Candidates must now earn the higher of:

• 20% above the median wage in their region, or
• A wage consistent with similar employees at the same employer.

This ensures fair compensation for workers and maintains consistency in wage standards.

Annual Work Permit Targets

For the first time, Canada introduced annual targets for TFWP work permits in the Immigration Levels Plan. The target is set at 82,000 net new permits annually for 2025, 2026, and 2027. This aligns with Canada’s goal to reduce temporary residents from 7% to 5% of the overall population by 2026.

Looking Ahead: Future Changes

The Standing Committee on Citizenship and Immigration (CIMM) has reviewed the TFWP and proposed recommendations for future updates. While details remain under discussion, these changes signal Canada’s commitment to refining the program for long-term sustainability.