CANADA TIGHTENS THE TEMPORARY FOREIGN WORKER PROGRAM: HIGHER WAGES, FEWER APPROVALS

On October 21, 2024, Canada’s Minister of Employment, Randy Boissonnault, introduced significant updates to the Temporary Foreign Worker (TFW) Program, aimed at balancing the protection of Canadian workers with the need to address ongoing labour market challenges. These changes will take effect on November 8, 2024, and are designed to ensure that both the needs of employers and the rights of workers are prioritized.

One of the key updates includes a 20% increase in the wage threshold for high-wage Labor Market Impact Assessments (LMIAs). This adjustment is intended to ensure that foreign workers are compensated fairly and to mitigate wage disparity in the Canadian job market. Additionally, the government is implementing stricter business legitimacy verification processes, which will help ensure that employers participating in the TFW Program are genuinely operating and contributing to the economy.

These changes are projected to have a substantial impact on the TFW Program. Specifically, the adjustments are expected to result in 34,000 more low-wage LMIA requests. However, they may also lead to approximately 20,000 fewer approved positions for foreign workers. This shift could significantly reshape the landscape for both employers and foreign job seekers, requiring all stakeholders to adapt to the new realities of the program.

Implications for Employers and Foreign Workers

Employers will need to carefully assess their wage offerings and ensure compliance with the new requirements, while foreign workers will need to be prepared for a more competitive environment. As the Canadian labour market continues to evolve, these changes reflect the government's commitment to protecting local employment while still recognizing the necessity of foreign workers in certain sectors.

Stay Informed and Prepare for Changes

As these updates unfold, both employers and prospective foreign workers need to stay informed about the implications for their respective situations. If you’re an employer looking to navigate these new regulations or a foreign worker seeking opportunities in Canada, Global Opportunities is here to assist you. Our team of experts can guide the TFW Program and help you understand the necessary steps to ensure compliance and success.

Contact us today to learn more about how these changes might affect your plans or business operations in Canada, and let us help you navigate the complexities of the Canadian immigration system.