Canada has implemented new changes to the Temporary Foreign Worker Program (TFWP). This program enables Canadian employers to hire foreign workers on a work permit after obtaining a positive Labour Market Impact Assessments (LMIAs).
What are LMIAs? Why are they important?
The LMIA, conducted by Employment and Social Development Canada at an employer’s request, assesses the necessity of hiring a foreign worker when an important job position cannot be filled domestically.
A positive LMIA indicates that the employer can hire a foreign worker because the position could not be filled by a Canadian resident.
The Labour Market Impact Assessments (LMIAs) provide overseas workers with increased opportunities to work in Canada, facilitating pathways to permanent residency. Securing an LMIA-backed job offer can significantly aid in this transition. Workers can obtain a 10-year visa and a two-year work permit with the support of a Canadian employer, streamlining their entry and employment process.
Why change and what’s changed?
LMIAs are considered one of the Canadian government’s policies in reducing the unemployment rate and adjusting human resources to suit labor needs.
Job vacancies across all sectors in Canada dropped to 632,100 in January 2024, marking a significant decline from the peak of 983,600 recorded in the second quarter of 2022. In March, Canada’s unemployment rate rose to 6.1%, a 0.3% increase from the previous month.
In response to changing labor market conditions and a decrease in job vacancies, the Canadian government has adjusted the Temporary Foreign Worker Program. These adjustments aim to ensure that the program is only utilized when no Canadians are available to fill the required positions.
Below are details of the changes:
| LMIAs validity | Reduce from 12 to 6 months |
| Allowable percentage of low wage foreign workers | Decrease from 30% to 20% |
| Affected industry | 5 out of 7 industries listed in the 2022 Workforce Solutions Road Map, include: – Food Manufacturing (NAICS 311) – Wood Product Manufacturing (NAICS 321) – Furniture and Related Product Manufacturing (NAICS 337) – Accommodation and Food Services (NAICS 72) – Hospitals (NAICS 622) |
| Comes into effect from | May 1, 2024 |
Employers seeking LMIAs must now explore all hiring options, including employing asylum seekers with valid work permits.
Previously, employers were only required to demonstrate efforts to hire Canadian permanent residents or citizens. The new regulation mandates that they also consider asylum claimants holding work permits before requesting an LMIAs.
For comprehensive insights and customized assistance tailored to your individual circumstances for immigrating to Canada, feel free to reach out to our experienced consultants.
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