Temporary Foreign Worker Program - Labour Market Impact Assessment Update

Recent announcements from Immigration Refugees and Citizenship Canada (IRCC) has seen significant changes to the Temporary Foreign Worker (TFW) program, specifically for those employers seeking TFWs that require a positive Labour Market Impact Assessment, or LMIA as it is commonly referred to.

These changes, which have come into force as early as September and October this year, are intended to challenge the current LMIA system, and in turn maintain the integrity of the Canadian labour force.  It is clear that IRCC continues to strive to preserve employment opportunities for Canadians and Permanent Residents, and ensure that participating employers adhere to the expected standard when hiring foreign workers. 

For employers in the TFW program, beginning September 26, 2024, LMIA applications for certain low-wage positions will be impacted by changes to the cap on the proportion of positions available for that employer.  Specifically the current cap of 20% will be reduced to 10% for most sectors and in the construction and health sectors, the cap on low-wage positions is being reduced to 20%.  Moreover, for metropolitan areas that present an unemployment rate of 6% or higher, certain LMIA applications WILL NOT be considered, and the maximum duration allowed for low-wage positions has been reduced from 2 to 1 year. 

It is also worth noting that as of October 28, 2024, employers will also no longer have the option of procuring an attestation from a lawyer or chartered professional accountant to prove business legitimacy.  Employers will be tasked with providing alternate supporting documents that will speak to proof of providing a good service, reasonable employment need and ability to fulfill the terms of the job offer to the foreign worker.

A further measure implemented by IRCC to help control the LMIA hiring process is the change to the wage threshold used to determine the high-wage and low-wage streams.  As of November 8, 2024, the threshold has been increased by 20% above the regional wage median. What this means for Ontario employers offering employment positions to qualifying foreign workers is that the wage threshold which was $28.39 prior to November 8, 2024, is now $34.07 and the job offers will need to reflect this change.  Employers must also be privy to the fact that wages as reported by Job Bank are updated every year in the fall and should confirm updates regularly to ensure that the wage expectation is being met.

It is without doubt that the nature of these legislative changes will have a notable impact on the hiring of foreign workers for the low and high wage streams.  Employers and applicants will face the challenge of navigating through these changes and we would be prepared to assist with any questions you may have regarding the newly implemented legislation.

Author:

Alex Chang

Immigration Consultant | Licensed Paralegal

e: achang@realtycarelaw.com