Updates to Canada Reforms the Temporary Foreign Worker Program: A Step Towards Meeting Labour Market Needs Posted August 29th.
Since August 2024, several notable updates have been made to Canada’s Temporary Foreign Worker Program (TFWP):
- Caps and Duration Changes:
- For the low-wage stream, a six-month pause has been implemented on processing Labour Market Impact Assessments (LMIAs) in metropolitan areas with an unemployment rate of 6% or higher. Additionally, the cap on the number of low-wage workers hired has been reduced to 10% of the workforce, and the maximum employment duration has been shortened from two years to one year.
- Focus on Wage Requirements:
- Employers under the high-wage stream must now provide compensation that aligns with job-specific median wages, which can include benefits, bonuses, or commissions, ensuring fairer conditions for workers.
- Increased Wage Thresholds: As of November 8, 2024, Canada raised the median wage thresholds by 20% for both high-wage and low-wage LMIA applications. For example, the median hourly wage in Alberta increased from $29.50 to $35.40, and in Ontario from $28.39 to $34.07. This adjustment aims to align wages with market standards, protect Canadian workers, and provide better earnings for foreign workers
- Policy Context and Resident Targets:
- Broader immigration adjustments aim to limit temporary residents to 5% of Canada’s total population, driven by housing and affordability concerns. This aligns with changes to study permit caps and pathways like Post-Graduation Work Permits (PGWPs).
- Employer Support for Workers:
- Enhanced support requirements for housing and transportation for low-wage workers are now mandatory, reflecting efforts to improve living conditions and integrate foreign workers.
These reforms build on April 2024’s initiatives, emphasizing accountability, fairness, and better alignment with Canada’s labour market and social priorities.
