The federal government has announced additional details and next steps regarding upcoming changes to the Temporary Foreign Worker (TFW) Program, set to take effect on September 26, 2024. These adjustments, aimed at reducing Canadian employers’ reliance on temporary foreign workers, were first revealed by Employment Minister Randy Boissonnault on August 26.
Among the key changes is a nationwide cap of 10 per cent on temporary foreign workers employed under the Low-wage Stream of the TFW Program. This limit, which previously excluded certain Quebec occupations, will now apply across the country, including those under the Traitement Simplifié in Quebec. However, employers in the healthcare, construction, and food processing sectors will be allowed to retain a 20 per cent cap due to ongoing labour shortages.
Additionally, all Labour Market Impact Assessments (LMIAs) for Low-wage Stream positions will be valid for a maximum of one year, a reduction from previous allowances. This applies to positions in Quebec processed under the Traitement Simplifié as well, with the exception of occupations within the Primary Agriculture Stream.
The changes also include the application of the Refusal to Process (RTP) policy to Census Metropolitan Areas (CMAs) with an unemployment rate exceeding 6 per cent. As with the employer cap, healthcare, construction, and food processing sectors will be exempt. The unemployment data will be updated quarterly based on the Labour Force Survey.
Minister Boissonnault emphasized the importance of Canadian employers investing in domestic talent. “The changes we are making today will prioritize Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy,” he said.
The federal government has been gradually rolling back pandemic-era measures designed to address critical labour shortages. Since October 2023, steps have been taken to reduce the percentage of temporary foreign workers from 30 per cent to 20 per cent and shorten the LMIA validity period from 18 months to six months.
The government will continue to monitor labour market conditions and may introduce additional adjustments to the program over the next 90 days. These could include changes to the High-Wage Stream, existing LMIA applications for unfilled positions, and sectoral exceptions.
The announcement follows an increase in Canada’s unemployment rate, which reached 6.6 per cent in August 2024, up from 6.4 per cent the previous month. The labour market has loosened since April 2023, with the number of unemployed Canadians rising to 1.5 million.
As part of ongoing efforts to reduce the volume of temporary residents, the federal government is also reviewing LMIA applications under the Low-wage Stream in Montreal. Processing of new applications for jobs paying below the Quebec median hourly wage was suspended for six months beginning September 3, 2024.
The Temporary Foreign Worker Program is designed to address labour shortages when no qualified Canadians or permanent residents are available to fill job vacancies.
