These changes mark a significant shift in the Temporary Foreign Worker (TFW) Program, originally announced on August 26, 2024, and effective today, September 26, 2024. The government aims to prioritize Canadian workers and reduce the reliance on foreign labor in metropolitan areas with unemployment rates of 6% or higher.
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Key Changes to the Temporary Foreign Worker Program Now in Effect
Effective today, the following changes have been implemented:
- Suspension of LMIAs in High Unemployment Areas: LMIAs under the low-wage stream will no longer be processed in census metropolitan areas with unemployment rates of 6% or higher, with exceptions for critical sectors like agriculture, food processing, construction, and healthcare.
- 10% Cap on Foreign Workers: Employers can now hire only 10% of their total workforce through the TFW Program, down from the previous 20% cap. Exceptions will apply to essential industries.
- Reduced Employment Duration: Employment duration for low-wage stream workers is now limited to one year, reduced from two years.
Previous Changes Introduced to Curb LMIA Fraud
On August 6, 2024, the Canadian government introduced measures to enhance program integrity and curb misuse:
- Regulatory Changes: Stricter scrutiny of employer eligibility and penalties for misuse have been established.
- 20% Cap Enforcement: A strict enforcement of the previous cap on low-wage foreign workers to promote the hiring of Canadian workers.
- Enhanced Oversight: Increased monitoring and inspections in high-risk areas.
- Fee Increase: Proposed increases in LMIA fees aim to deter frivolous applications.
Monitoring and Future Adjustments
The Canadian government will monitor these changes closely. A comprehensive review of the TFW Program will occur within 60 days, potentially leading to adjustments in high-wage streams and sector-specific exceptions.
Addressing Rising Unemployment and Program Misuse
With rising unemployment now at 6.6%, previous measures included reducing the validity of LMIAs from 18 months to 6 months and lowering the cap on temporary foreign workers from 30% to 20%. Recent approvals in Quebec have temporarily frozen TFW applications in low-wage streams.
Ensuring the Right Use of the TFW Program
The new LMIA rules reflect Canada’s commitment to safeguarding job opportunities for Canadians and ensuring that the TFW Program meets its intended purpose. As the labor market evolves, further adjustments will be necessary to maintain a balanced job market, emphasizing the government’s dedication to prioritizing Canadian talent.
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These changes underscore a significant realignment of Canada’s labor policies in response to current economic conditions, ensuring that the TFW Program serves its intended role effectively.