March 22, 2024: In response to shifting labour market conditions and a decrease in job vacancies, the Government of Canada has announced adjustments to the Temporary Foreign Worker (TFW) Program. The program, which experienced increased demand in 2022 due to the post-pandemic economy, low unemployment rate, and high job vacancy rates, implemented several policy changes to address labour shortages.
Honourable Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, revealed that certain time-limited measures under the TFW Program Workforce Solutions Road Map will not be renewed and will conclude earlier than planned this spring.
Effective May 1, 2024, the following modifications will be put into effect:
- New Labour Market Impact Assessments (LMIAs) will be valid for six months instead of the previous 12 months, ensuring an accurate assessment of labour market needs.
- Employers identified in the 2022 Workforce Solutions Road Map will face a reduction from 30% to 20% of their total workforce that can be sourced through the Temporary Foreign Worker Program, with exceptions for the construction and healthcare sectors.
- Employers will be required to explore all options before applying for an LMIA, including recruiting asylum seekers with valid work permits in Canada.
Additionally, starting January 1, 2024, employers must conduct annual reviews of the wages of temporary foreign workers to ensure they align with increases in prevailing wage rates for their occupation and region of work. This measure will ensure that temporary foreign workers are paid at the prevailing wage level throughout their employment period.
Minister Boissonnault emphasized the government’s commitment to reducing Canada’s reliance on temporary foreign workers and encouraging employers to seek talent domestically. He stated, “The time-limited measures introduced in 2022 were necessary, but now, as circumstances change, we must ensure our Temporary Foreign Worker Program aligns with our current needs.”
Honourable Marc Miller, Minister of Immigration, Refugees, and Citizenship Canada, underscored the importance of these changes in prioritizing Canada’s needs for construction workers, early childhood educators, and health care workers. He stated, “As we gradually decrease our reliance on temporary foreign workers, we will continue to assist employers in filling job vacancies while supporting Canadian workers.”
The Government of Canada will continue to monitor labour market conditions to ensure that the TFW Program remains responsive to current economic needs, while also safeguarding the rights of temporary foreign workers in Canada.
