Minister Boissonnault announces further Temporary Foreign Worker Program reforms to better protect the Canadian labour market and workers

“This change to the Temporary Foreign Worker Program reinforces our commitment to protecting temporary foreign workers, while prioritizing the Canadian workers available to join the labour force. By raising the threshold for high-wage stream positions, we are supporting wage growth for Canadians.”

– Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault

• The Labour Market Impact Assessment (LMIA) remains an important tool that helps protect the Canadian labour market from possible negative impacts of hiring temporary foreign workers, such as wage suppression or displacement of Canadian workers. Employers must apply for an LMIA and receive a positive assessment before they can seek to hire temporary foreign workers.
• The low-wage stream and high-wage stream are two components of the TFW Program, differentiated by the wage level offered. There are key differences between the streams:
  • The low-wage stream is for jobs where the wage offered is below the provincial or territorial median hourly wage plus 20%. Under this stream:
    • employers must provide supports for workers that include return transportation to their country of origin and ensuring or providing suitable accommodation;
    • employers must conduct at least two additional methods of recruitment that are consistent with the occupation (targets an audience that has the appropriate education, professional experience and or skill level required for the occupation);
    • employers are limited to a temporary foreign worker complement of 10% of their workforce at any worksite (up to 20% for certain high-demand sectors); and
    • the TFW Program will not process LMIA applications for positions in Census Metropolitan Areas (CMA) where the unemployment rate is 6% or higher.
  • The high-wage stream is for jobs where the wage offered is above the provincial or territorial median hourly wage plus 20%. Under this stream:
    • there is currently no limit on the number of workers an employer can hire; and
    • CMA unemployment rates are not taken into consideration in LMIA application assessments.
• The changes announced today are forecasted to result in 34,000 positions moving from the high-wage stream to the more stringent rules of the low-wage stream. This shift could result in as many as 20,000 fewer positions being approved through the TFW Program when combined with other policies in effect as of September 26, 2024, including the following:
  • the Government of Canada does not process LMIAs in the low-wage stream in CMAs with an unemployment rate of 6% or higher (with some exceptions for high-demand sectors); and
  • employers may hire no more than 10% of their total workforce through the TFW Program (with some exceptions for high-demand sectors).
• As part of the LMIA, all job offers made by employers must be assessed to ensure that both the business and the job offer are genuine and legitimate. Applicants must provide supporting documents, as detailed on this web page: Business legitimacy – Canada.ca.
• The Government of Canada is striving to ensure better representation of under-represented groups in the Canadian labour market. Examples of challenges facing these groups include the following:
  • In September 2024, the youth unemployment rate was 13.5%, compared to the national average of 6.5%.
  • Indigenous people at all education levels had higher unemployment rates in 2023 (7.7%) than the non-Indigenous population aged 25 to 54 (4.5%).
  • In 2022, the employment rate among those aged 16 to 64 with disabilities (65.1%) was 15 percentage points lower than the rate for those without disabilities (80.1%).

Source: canada.ca