Canada Introduces Revisions to Temporary Foreign Worker Program to Align with Labour Market Demands

In a press conference led by Immigration Minister Marc Miller and Employment Minister Randy Boissonnault, Canada has unveiled adjustments to its Temporary Foreign Worker Program (TFWP) aimed at addressing evolving labour market requirements.

During the pandemic, Canada implemented temporary measures to alleviate labour market strains. However, with changing economic dynamics and a narrowing gap between job vacancies and unemployment, the country is now recalibrating these measures.

Minister Boissonnault stated, “We are now in a different economic picture. With the gap between unemployment and job vacancies closing, a tightening labour market… some of these measures are no longer needed.”

The TFWP facilitates the issuance of work permits to foreign nationals to fill labour market gaps in Canada. Employers seeking to hire foreign nationals through this program must submit a Labour Market Impact Assessment (LMIA) demonstrating the absence of qualified Canadians or permanent residents for the position.

Effective May 1st, 2024, the validity period of an LMIA will revert to 6 months from the temporarily extended 12 months during the pandemic.

However, employers enrolled in the Recognised Employer Pilot program will remain unaffected by this change.

Additionally, the temporary increase in the cap for low-wage workers, allowing certain sectors to have up to 30% of their workforce comprised of such workers, will be retained only for the construction and health care sectors as of May 1st, 2024. The cap exemption for the agriculture sector and seasonal employers will remain unchanged.

These revisions reflect Canada’s commitment to fortifying the integrity of its immigration system, integral to its economy. The country has recently implemented measures to manage the influx of temporary residents, including international students.

Minister Miller emphasized, “We want every new family and resident to be set up for success and be able to access the services they need. Our ultimate goal is to ensure a well-managed, sustainable immigration system based on needs.”

This move underscores Canada’s ongoing efforts to align immigration policies with evolving labour market demands while maintaining a sustainable approach to population management.