The Temporary Foreign Worker (TFW) Program in Canada was created as a measure to fill job vacancies when Canadian citizens and permanent residents are not available for the positions. However, concerns have been raised that the program is sometimes used to bypass the hiring of local workers. In response to these concerns, Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, has announced significant changes to the TFW Program.

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Key Changes to the Program

Starting September 26, 2024, the Government of Canada will implement several changes to reduce the reliance on temporary foreign workers:

1. Limiting the Low-Wage Stream in High Unemployment Areas: The government will stop processing Labour Market Impact Assessments (LMIAs) in the Low-Wage stream for areas where the unemployment rate is 6% or higher. There are some exceptions to this rule, particularly for jobs related to food security (such as agriculture and food processing), as well as construction and healthcare.

2. Capping the Use of Temporary Foreign Workers: Employers will now be restricted to hiring no more than 10% of their total workforce through the TFW Program, specifically within the Low-Wage stream. This is a further reduction from earlier limits set in March 2024. Exceptions to this cap will also be made for jobs in the food security sectors, healthcare, and construction.

3. Shortening the Duration of Employment: The maximum duration for which temporary foreign workers can be employed under the Low-Wage stream will be reduced from two years to one year.

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The Rationale Behind the Changes

These changes are part of the government’s effort to ensure that Canadian employers prioritize hiring local workers, including young people, newcomers, and persons with disabilities. The aim is to encourage investment in training and upskilling of the existing workforce, preparing them for the demands of the future economy.

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Looking Forward

The government plans to continue monitoring the labour market and make further adjustments to the TFW Program as necessary. Over the next 90 days, there will be a review of other aspects of the program, including the High-Wage stream and current LMIA applications. This could lead to additional changes, especially in sectors or regions where the program may still be misused.

In summary, the government is taking steps to ensure that the TFW Program is used appropriately, supporting the Canadian workforce and reducing unnecessary reliance on temporary foreign workers.

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