The Canadian government announced stricter regulations on companies and employers who hire temporary foreign workers. These changes prioritize employment opportunities for Canadians and asylum seekers with valid work permits.
Starting May 1st, 2024, the Labour Market Impact Assessment (LMIA) validity period will be shortened to six months. This reduces the timeframe for foreign workers to apply for work permits after a positive LMIA is issued.
The maximum percentage of low-wage temporary foreign workers allowed in specific sectors has also been reduced from 30% to 20%. Additionally, employers must demonstrate they’ve exhausted all options, such as employing qualified asylum seekers, before seeking an LMIA to hire temporary foreign workers.
Furthermore, beginning in January 2024, employers are required to reassess temporary foreign worker wages to ensure they align with prevailing wage rates for the specific occupation and work region.
These stricter measures aim to reduce Canada’s reliance on temporary foreign workers and encourage the hiring of Canadian citizens and permanent residents. This approach seeks to address labor shortages while ensuring job opportunities prioritize qualified Canadians.
The Temporary Foreign Worker Programme (TFWP) previously lacked limitations on the number of issued work permits. The recent surge in job vacancies due to post-pandemic recovery has prompted the government to implement these adjustments.
Canada’s move aligns with a broader trend. Countries like Germany and Japan are also introducing initiatives to attract and retain skilled immigrants to fill labor gaps in their economies.
