The govenment of Canada has announced stopping processing LMIAs under the low-wage stream for metropolitan cities with an unemployment rate of 6% or higher.
Furthermore, the Canadian government announced a series of significant changes to the Temporary Foreign Worker (TFW) Program aimed at reducing reliance on foreign workers and prioritizing Canadian talent.
This move comes in response to the increasing misuse of the program and the country’s shifting labour market dynamics, marked by a rising unemployment rate.
These new measures, effective September 26, 2024, are in response to the increasing misuse of the program and the country’s shifting labor market dynamics, highlighted by a rising unemployment rate.
The changes include the Government of Canada refusing to process LMIAs in the Low-Wage stream for census metropolitan areas with an unemployment rate of 6% or higher.
Exceptions will be made for seasonal and non-seasonal jobs in critical sectors such as food security (including primary agriculture, food processing, and fish processing), construction, and healthcare.
Additionally, employers will be limited to hiring no more than 10% of their total workforce through the TFW Program.
This new cap applies specifically to the Low-Wage stream and represents a further reduction from the cap implemented in March 2024.
Furthermore, the maximum duration of employment for workers hired through the Low-Wage stream will be reduced from two years to one year.
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The Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, stressed the importance of focusing on domestic labor.
“The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy,” said Minister Boissonnault.
Therefore, Canadian employers are being urged to explore untapped economic resources within the country, including young people, newcomers, and persons with disabilities.
The government also encourages employers to invest in retraining and upskilling their current workforce to adapt to the evolving economic landscape.
The Government of Canada will continue to monitor labor market conditions and make further adjustments to the TFW Program as necessary.
Meanwhile, the government also added that in the coming months, additional reviews may be conducted, potentially resulting in changes to the High-Wage Stream, existing LMIA applications where positions have not yet been filled, sectoral exceptions, or the refusal to process other LMIA applications, including those in rural areas.
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