Canada has announced that the required wage levels for jobs under the Temporary Foreign Worker Program (TFWP) will increase. Starting November 8, wages in the high wage category will be 20 perce higher than the curre level, which is the curre level in line with the average wage in the releva province or region.
This change will result in an increase of $5 to $8 per hour. As a result of this change, 34,000 jobs that were previously authorized to work will be moved from the high-wage category to the low-wage category. Canada has recely iroduced tougher rules for the low-wage bracket, including more restrictions on employers, shorter Labor Market Impact Assessme (LMIA) credits and restrictions on areas with high unemployme rates.
The following restrictions apply to the low wage category from 26 September:
- A 10% limit on the number of temporary foreign workers for employers at the national level, which also includes jobs under the Traiteme Simplifié program in Quebec. However, in the healthcare, construction and food processing sectors, this limit has increased to 20%.
- All work permits issued for the low-wage category allow workers to work in Canada for only one year, except for jobs related to primary agriculture.
- Canada will no longer process labor market impact assessmes (LMIAs) for low-wage industries in urban areas with unemployme rates above 6%, except for the health care, construction and food processing sectors. This limit is revised every three mohs based on the results of the labor force survey.
The changes to the high wages branch were announced by Labor Minister Randy Boissonault and are aimed at supporting wage growth for Canadian workers. Also, as of October 28, employers will no longer be able to use certifications from professional accouas or lawyers to prove the legitimacy of their business. This change has been implemeed to preve abuse of the program and to ensure the autheicity of job offers.
These changes to the Temporary Foreign Worker Program (TFWP) follow new restrictions imposed on Canada’s iernational stude program, including limits on the number of study permits issued.
Canada’s Immigration Minister Mark Miller is set to announce his latest immigration plan on Nov. 1, which for the first time will include targets related to the number of temporary resides.
What is a Labor Market Impact Assessme (LMIA) and why is it importa?
The Labor Market Impact Assessme (LMIA) is a critical tool for protecting Canada’s labor market. This instrume ensures that the hiring of temporary foreign workers does not harm Canadian workers, such as by lowering wages or displacing local labor. Before hiring foreign workers, employers must apply for an LMIA and receive a positive assessme to demonstrate that there is a genuine need for foreign workers and that no suitable Canadian workers are available for the job.
What is the difference between the low wage branch and the high wage branch of the Temporary Workforce Program (TFWP)?
The Temporary Workforce Program (TFWP) has two branches:
- Low wage branch: Jobs with wages below the provincial/regional average plus 20%. Employers must provide repatriation costs, appropriate housing, and additional employme measures. Also, there is a 10% limit on the number of foreign workers per workplace (up to 20% for high-demand sectors).
- High salary branch: Jobs with wages higher than the provincial/regional average plus 20%. For this branch, there is no limit on the number of foreign workers and the unemployme rate is not considered in the LMIA assessme.
What is the impact of rece changes in the temporary workforce program on employers?
The changes implemeed in 2024 will move 34,000 jobs from high-wage to low-wage jobs, subjecting employers to stricter requiremes. These changes could lead to a reduction in the number of work permits for up to 20,000 people. Employers must ensure they comply with the new rules, including stricter limits on the number of foreign workers and limits based on local unemployme rates.
Source: immigration.ca as of October 23, 2024
