On August 26, 2024, Prime Minister Justin Trudeau announced significant policy changes to curb the reliance on temporary foreign workers in Canada. Trudeau also indicated that the federal government is considering reducing the annual intake of new permanent residents.

The new restrictions on the Temporary Foreign Worker Program (TFW Program) are designed to reduce businesses’ dependence on foreign workers, encouraging investment in training and technology rather than reliance on low-wage foreign workers. These measures also prioritize local workers, address labor market issues, and prevent the abuse and exploitation of foreign workers. The new restrictions will take effect on September 26, 2024.

New Measures for Tightening TFW Program Regulations

Restrictions on Low-Wage Temporary Foreign Workers (LMIA)

Employers in regions with unemployment rates of 6% or higher will be prohibited from hiring low-wage temporary foreign workers. Applications for such workers will be denied, except in sectors facing critical shortages, including agriculture, food and fish processing, construction, and health care.

Reduction in the Proportion of Low-Wage Temporary Foreign Workers

The cap on the proportion of low-wage foreign workers within a company will be decreased from 20% to 10% of the total workforce, reverting to pre-pandemic levels.

Shortened Employment Period for Low-Wage Foreign Workers

The maximum employment duration for low-wage temporary foreign workers will be reduced from two years to one year.

Increased Scrutiny of LMIA Employers

Employers seeking to hire temporary foreign workers will face stricter requirements. They must provide detailed evidence of efforts to hire Canadian workers before employing foreign labor.

For more details, please visit the the Canadian Government’s website.

Visit TWA Canada Immigration News for more related updates.