Canada Tightens Temporary Foreign Worker Program with New Restrictions
TL;DR
Employers in Canada may gain an advantage by upskilling or re-training existing workers to fill job vacancies instead of relying on the TFWP.
The government is reintroducing policies to restrict the ability of Canadian employers to hire low-wage temporary foreign workers, including a low-wage cap and shortened work permits.
Reducing the number of foreign workers in Canada is intended to stimulate the Canadian labour market and provide more opportunities for Canadian workers.
The government's recent announcements regarding changes to the TFWP have far-reaching consequences and represent a drastic reversal of previous government policy.
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The Canadian government has announced substantial changes to its Temporary Foreign Worker Program that will take effect on September 26, 2024, representing a significant policy shift toward reducing foreign worker numbers. Minister of Employment, Workforce Development and Official Languages Randy Boissonnault has introduced three key restrictions targeting low-wage temporary foreign workers as the country grapples with immigration concerns during a housing and cost-of-living crisis.
The first major change reduces the cap on low-wage temporary foreign workers from 20% to 10% of an employer's workforce, effectively rolling back COVID-era policies that allowed greater flexibility. This reduction aims to encourage businesses to prioritize hiring from the domestic labor market rather than relying on foreign workers. The government's approach signals a deliberate effort to redirect employment opportunities toward Canadian residents amid economic pressures.
Secondly, work permits for low-wage temporary foreign workers will be shortened to one year, down from previous longer-term options. This change will require employers to apply for new Labour Market Impact Assessments more frequently, potentially every eight months when accounting for processing times. The increased administrative burden is designed to ensure ongoing justification for foreign worker needs and regular reassessment of labor market conditions.
The third restriction involves the government refusing to process low-wage Labour Market Impact Assessments in metropolitan areas with unemployment rates of 6% or higher, though exceptions exist for high-priority sectors including agriculture, food processing, construction, and healthcare. This policy revives similar rules that were revoked in 2022 during the post-pandemic recovery period, indicating a return to more restrictive immigration measures. For detailed analysis of these changes, interested readers can visit the Canadian immigration legal resource.
These modifications represent a notable departure from Canada's previously expansive immigration stance following the global pandemic and the influx of Ukrainian refugees. Employers across various sectors must now reassess their reliance on low-wage temporary foreign workers and prepare for more frequent application processes. Industries such as hospitality, retail, and certain manufacturing sectors that traditionally depend heavily on temporary foreign labor may face significant workforce challenges under the new restrictions.
While the government frames these changes as necessary measures to address domestic employment concerns, critics warn they could lead to labor shortages in key industries and potentially slow economic growth. The balance between responding to public sentiment about immigration levels and meeting the labor needs of Canadian businesses remains contentious. As implementation approaches, the effects on Canada's labor market and economy will be closely monitored, with potential implications for future immigration policies and the country's competitive position in the global talent market.
Curated from 24-7 Press Release
