Canada
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The Canadian government has unveiled modifications to its Temporary Foreign Worker (TFW) Program aimed at curbing misuse and encouraging the employment of Canadian citizens.
This initiative, which permits employers to recruit foreign workers for temporary positions when qualified Canadians are unavailable, has faced scrutiny for allegedly being exploited to circumvent hiring skilled domestic workers. In response, the government has implemented a series of reforms designed to reduce dependence on foreign labour and ensure the program serves as a last resort. A pivotal change involves the government's decision to cease processing Labour Market Impact Assessment (LMIA) applications in the Low-Wage stream for census metropolitan areas with unemployment rates of 6% or higher.
Exceptions will be made for positions in sectors crucial to food security, such as agriculture, food processing, and fish processing, as well as in construction and healthcare. This measure is intended to prioritize the employment of Canadian workers in regions experiencing higher unemployment. Furthermore, the Canadian government has implemented a significant reduction in the cap on foreign workers in the TFW Program. For low-wage jobs, employers are now limited to 10% of their workforce, a considerable decrease from the previous 30% limit established in March 2024. This adjustment aims to incentivize employers to invest more heavily in recruiting and training Canadian workers.
In addition to these changes, the maximum employment period for foreign workers hired under the Low-Wage stream has been shortened from two years to one year. This modification is designed to reinforce the temporary nature of these positions and prevent employers from becoming overly reliant on foreign labour. The government has also announced plans to conduct a comprehensive review of the High-Wage stream and unprocessed LMIA applications over the next 90 days. This evaluation will help identify any necessary adjustments to ensure the program's appropriate utilization and the prioritization of Canadian workers. Another significant alteration, implemented in October 2023, saw the validity period of LMIAs reduced from 18 months to just 6 months.
The change aimed to expedite hiring processes and minimize delays in filling positions while ensuring that employers maintain an active search for qualified Canadian workers. Some business groups have expressed apprehension regarding the potential impact on industries heavily reliant on temporary foreign workers, such as agriculture and food processing. They argue that these changes could precipitate labour shortages and increased costs for employers. Conversely, proponents of the reforms contend that they are essential for safeguarding Canadian jobs and ensuring the TFW Program is utilized as intended.
Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault reiterated the importance of these changes in a recent statement. He emphasized employers' responsibility to invest in the full spectrum of workers available in Canada, including young people, newcomers, and persons with disabilities, who often represent an untapped economic resource. Boissonnault also stressed the need for employers to invest in retraining and upskilling to ensure their current workforce can adapt to future economic demands.