Starting September 26, Canada will stop processing Labour Market Impact Assessments (LMIAs) for the Low-Wage stream of the Temporary Foreign Worker Program (TFWP) in certain cities. This move, aimed at prioritizing Canadian workers, comes in response to rising unemployment rates and increasing scrutiny of the TFWP.
Topics Discussed
- New LMIA Restrictions in High-Unemployment Areas
- Exceptions for Essential Sectors
- Impact on Employers and Workforce Composition
- Future Changes to the High-Wage Stream
New LMIA Restrictions in High-Unemployment Areas
Effective September 26, the Canadian government will no longer process LMIAs for Low-Wage positions in cities with unemployment rates of 6% or higher. This policy targets areas where more Canadians are available to fill open positions, ensuring that the program remains aligned with national economic needs.
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Exceptions for Essential Sectors
Despite the new restrictions, exceptions will be made for critical sectors such as food security, construction, and healthcare. These sectors can continue hiring through the TFWP, acknowledging their importance to the Canadian economy.
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Impact on Employers and Workforce Composition
Employers are now limited to hiring only 10% of their workforce through the TFWP, with the maximum employment duration reduced to one year. This change underscores the government’s intent to reduce dependency on temporary foreign workers while encouraging the upskilling of Canadian employees.
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Future Changes to the High-Wage Stream
Over the next 90 days, the High-Wage stream of the TFWP will undergo review, which may lead to further changes. This could include adjustments to existing LMIA applications and sectoral exceptions, as the government continues to refine the program to better serve Canada’s labor market needs.
These changes reflect Canada’s broader strategy to manage temporary foreign workers and ensure the integrity of its labor market during challenging economic times.
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