Changes to Canada’s Temporary Foreign Worker Program (TFWP) in 2024 – A Year in Review
Canada’s Temporary Foreign Worker Program (TFWP) underwent significant transformations in 2024. These changes reflect the federal government’s evolving approach to addressing labor market challenges, enhancing worker protections, and managing immigration levels effectively. In this comprehensive review, we explore the key updates to the TFWP and their implications for employers, foreign workers, and Canada’s labor market.
Key Updates to the TFWP in 2024
1. Reduction in LMIA Validity
The validity of a Labour Market Impact Assessment (LMIA) was reduced from 12 months to six months, effective May 1, 2024. This measure, announced by Immigration Minister Marc Miller and Employment Minister Randy Boissonnault, aims to ensure that LMIAs accurately reflect current labor market conditions. Employers participating in the Recognized Employer Pilot program are exempt from this change.
2. Visitors No Longer Eligible for Work Permits Within Canada
As of August 28, 2024, the temporary public policy allowing visitors to apply for job-offer-supported work permits from within Canada ended. Originally introduced in August 2020 during the COVID-19 pandemic, this policy’s expiration requires visitors to leave Canada before applying for such permits, increasing administrative complexity for prospective workers.
3. Suspension of Low-Wage LMIAs in High Unemployment Areas
On September 26, 2024, the federal government ceased processing low-wage LMIAs in census metropolitan areas (CMAs) with unemployment rates of 6% or higher. Exceptions apply to sectors critical to food security, construction, and healthcare. Quebec implemented similar restrictions, adding measures for jobs in Montreal below the median hourly wage of $27.47 CAD.
4. Reduction in Employment Duration for Low-Wage Stream
The maximum duration of employment for workers in the low-wage stream was reduced from two years to one year, effective September 26, 2024. This change aims to balance labor market needs with opportunities for Canadian workers.
5. Lower Workforce Caps for Low-Wage Workers
Effective September 26, 2024, the federal government reduced the cap on low-wage workers an employer can hire through the TFWP to 10% of their total workforce. Exceptions exist for construction and healthcare sectors, where the cap is 20%.
6. Elimination of Attestations as Proof
From October 28, 2024, employers can no longer use attestations from lawyers, Chartered Professional Accountants (CPAs), or financial institution officials as proof of providing goods or services. Instead, alternative documentation is required, promoting greater accountability.
7. Increased Wage Requirements for High-Wage Stream
Effective November 8, 2024, candidates under the high-wage stream must earn at least 20% more than the median wage for their position in their region or a wage within the range earned by existing employees in the same role. This update ensures fair compensation and reduces wage disparities.
8. Introduction of Annual TFWP Work Permit Targets
For the first time, Canada’s Immigration Levels Plan set annual targets for TFWP admissions, with 82,000 net new work permits projected annually from 2025 to 2027. This move aligns with the government’s goal of reducing temporary residents as a proportion of the population from 7% to 5% by 2026.
Implications of These Changes
For Employers
- Increased Administrative Burdens: Reduced LMIA validity and stricter documentation requirements demand faster recruitment cycles and greater compliance efforts.
- Sector-Specific Challenges: Industries reliant on low-wage workers face tighter caps and reduced employment durations, potentially exacerbating labor shortages.
For Foreign Workers
- Limited Opportunities: Changes to low-wage LMIA processing and the expiration of the visitor-to-worker policy narrow pathways for employment.
- Higher Wage Expectations: High-wage stream updates ensure better compensation but may limit access for less-skilled workers.
For the Labor Market
- Focus on Canadian Workers: Policies aim to prioritize domestic labor by limiting the reliance on temporary foreign workers in areas with high unemployment.
- Sustained Economic Growth: While stricter regulations may challenge employers, they support long-term economic sustainability by addressing wage gaps and reducing worker exploitation.
Future Prospects and Recommendations
The Standing Committee on Citizenship and Immigration (CIMM) held extensive discussions on the TFWP in 2024, recommending further reforms. These include improving worker protections, streamlining application processes, and balancing the program’s impact on domestic labor.
Recommendations for Employers:
- Plan Ahead: Anticipate LMIA validity limitations and adjust recruitment timelines.
- Focus on Compliance: Ensure adherence to wage requirements and documentation standards.
- Explore Alternatives: Invest in training and upskilling Canadian workers to mitigate dependency on temporary foreign labor.
Recommendations for Workers:
- Stay Informed: Keep up with policy changes and eligibility requirements.
- Seek Support: Engage with immigration consultants or legal experts to navigate the application process effectively.
The updates to Canada’s TFWP in 2024 reflect a commitment to striking a balance between labor market needs and sustainable immigration practices. While these changes present challenges, they also offer opportunities for greater equity and efficiency in the program. Employers and workers must adapt to this evolving landscape to ensure mutual success.
