The Government of Canada has introduced important reforms to the Temporary Foreign Worker (TFW) Program and the Labour Market Impact Assessment (LMIA) process. These changes aim to better protect foreign workers and prioritize Canadian workers, ensuring a balanced and stable labour market.
Key Changes:
- Wage Increase for High-Wage Stream: Starting November 8, 2024, the hourly wage for workers in the high-wage stream will increase by 20% above the median wage in each province or territory. This will add an extra $5 to $8 per hour, depending on the location. The goal is to raise wages for Canadians and reduce the need for hiring foreign workers for high-wage roles.
- More Jobs Moving to Low-Wage Stream: Because of the wage increase, around 34,000 jobs will shift from the high-wage stream to the low-wage stream, which has stricter requirements. In the low-wage stream:
- Employers must provide proper housing and transportation for foreign workers.
- Employers are limited to hiring 10% of their workforce through the TFW Program. However, in sectors with high demand—such as agriculture, food processing, hospitality, construction, and caregiving—this limit can go up to 20% to address labour shortages.
- Strengthened Business Verification: From October 28, 2024, businesses applying to hire foreign workers through the TFW Program will no longer be allowed to use attestations from lawyers or accountants to prove their legitimacy. Instead, the government will verify businesses through data-sharing agreements with provinces and territories. This ensures only genuine employers with real job needs can use the program, reducing fraud and protecting workers.
Also Read : Alberta Introduces New Worker Expression of Interest (EOI) System for Immigration in 2024
The Role of the Labour Market Impact Assessment (LMIA):
The LMIA is a critical tool that ensures hiring foreign workers does not harm the Canadian labour market. Employers must get a positive LMIA before they can hire temporary foreign workers. This ensures that bringing in foreign workers won’t result in wage suppression or replace Canadian workers. Even with the new reforms, the LMIA process continues to play a vital role in protecting Canadian jobs and ensuring only businesses with genuine labour needs can access foreign labour.
Prioritizing Canadian Workers:
The reforms encourage employers to focus on hiring Canadian workers, especially from under-represented groups like youth, women, Indigenous people, and people with disabilities, who have higher unemployment rates. For example, in September 2024, the unemployment rate for youth was 13.5%, compared to the national average of 6.5%. These efforts aim to reduce unemployment and provide more opportunities for Canadians.
Impact of the Changes:
These reforms strengthen the LMIA process and help ensure stricter rules for jobs in the low-wage stream, protecting foreign workers and encouraging Canadian employers to prioritize domestic hiring. As a result, the number of approved positions is expected to drop by 20,000, giving more opportunities to Canadian workers.
Source Link: canada.ca
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