Breaking: Canada announces changes to the Temporary Foreign Worker Program to better address labour market needs

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Breaking: Canada announces changes to the Temporary Foreign Worker Program to better address labour market needs

Immigration Minister Marc Miller and Labor Minister Randy Boissonnault have announced changes to Canada's Temporary Foreign Worker Program (TFWP).

This is a developing story. Additional announcements were made during this press conference. CICNews will provide an update as more information becomes available.

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During the pandemic, Canada has implemented a number of temporary measures to improve labor market conditions. However, Canada has now begun to reverse these temporary measures.

“We are now in a different economic picture. As the gap between unemployment and vacancies closes and the labor market tightens, some of these measures are no longer necessary,” said Minister Boissonault.

The TFWP is designed to provide foreign nationals with work permits that can help fill gaps in the Canadian labor market. Companies in Canada that wish to hire foreign nationals through the TFWP must include with their application a Labor Market Impact Assessment (LMIA) indicating that there were no qualified Canadians or permanent residents for the position.

To improve labor market conditions, Canada temporarily extended the validity of an LMIA to 12 months during the pandemic. From May 1, 2024, the validity period of an LMIA is now 6 months again. Please note that employers participating in the Recognized Employer Pilot program are not affected by this change.

Low-wage workers who applied through the TFWP must make up no more than 20% of a Canadian company's workforce. In 2022, Canada increased this cap to 30% as a temporary measure and only for certain sectors. Beginning May 1, 2024, only up to 30% of construction and healthcare workers may receive a low-wage TFWP work permit.

Note that the exemption from the cap remains unchanged for the agricultural sector and seasonal employers.

These changes come at a time when Canada is seeking to strengthen the integrity of its immigration system, which plays a central role in the Canadian economy. Canada recently announced a cap on study permits and changes to its Post-Graduation Work Permit (PGWP) program to respond to a rapid and unsustainable increase in the number of international students.

“Recently, the number of people living temporarily in Canada has increased significantly, now reaching up to 2.5 million or 6.2% of our population in 2023… We are targeting a decline in our temporary living population to 5% in the next three years,” said Immigration Minister Marc Miller. “We want every new family and resident to be successful and have access to the services they need. Our ultimate goal is to ensure a well-managed, sustainable and responsive immigration system.”

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