If you have been paying attention to immigration trends in Canada over the past few years, you would have noticed the winds of change were already blowing in fall 2023. At the beginning of 2024, the Government of Canada implemented “temporary measures” to restrict the international student program, including more than doubling the minimum proof of funds required. These major changes hinted at upcoming changes for Canada’s temporary residents including foreign workers.
In March 2024, Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, announced that new Labour Market Impact Assessments (LMIAs) would be valid for six months down from 12 months and employers would have a reduced cap on the percentage of foreign workers in their total workforce of 20%, down from 30%. Fast forward to August 6, 2024, when Minister Boissonnault announced “new measures to address fraud in Canada’s Temporary Foreign Worker Program” (TFWP). In this announcement, Minister Boissonnault outlined actions being “implemented to reduce the use of temporary foreign workers in Canada.”
On August 26, 2024, Minister Boissonnault announced significant changes to the Low-Wage LMIA stream that goes into effect on September 26, 2024. It is now quite clear that foreign workers are the next group of temporary residents to be scapegoated by the Government as it attempts to cater to shifting public opinion that has become increasingly anti-immigrant due to an ongoing housing and cost of living crisis, despite the reality that Canada needs immigration in order to offset its aging population.
What is the TFWP? Why does an employer need an LMIA?
In order for a foreign worker to obtain a work permit under the TFWP, an employer first needs a positive Labour Market Impact Assessment (“LMIA”) from Employment and Social Development Canada (ESDC). According to ESDC, the TFWP allows Canadian employers to hire foreign workers to fill temporary jobs when qualified Canadians and permanent residents are not available. LMIAs are regulated in accordance with the Immigration and Refugee Protection Act (‘Act’) and the Immigration and Refugee Protection Regulations (‘Regulations’).
The LMIA process can be complex, costly to the employer, and lengthy, and there is no guarantee of success however there are certainly good and bad actors currently using the system.
What is a Low Wage LMIA and What Has Changed?
Whether an employer needs a high or low wage LMIA is determined on the province where the employer is operating and the hourly wage of the position. If the hourly wage being offered to the foreign worker is below the median provincial wage then the employer will apply under the low wage LMIA stream. There are specific differences between the low wage and high wage LMIA streams. Starting September 26, 2024, certain LMIA applications submitted for the low-wage stream will be affected by the following tightening measures:
- Refusal to process LMIA applications for low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher [Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare];
- The current 20% cap on the proportion of low-wage foreign worker positions is being reduced to 10%; and
- The maximum employment duration for low-wage positions is being reduced from 2 years to 1 year.
Why do these changes matter?
As an example, the current median wage in British Columbia is $28.85, so if you are making less than that, (i.e. a Cook making $25/hr), but working in a skilled position (NOC 63200 Cooks is a TEER 3 position), and you are currently in Canada with a positive low wage LMIA, you might not be able to extend your LMIA unless the employer offers a higher wage. This could also impact applicants intending to apply for Express Entry who want to benefit from an additional 50 points through a valid job offer.
It is noted that 1 year employment durations could create new backlogs if employers are required to frequently re-apply in order to ensure they have workers to meet their needs. This could have the intended effect of deterring employers from accessing the program in the short term but have negative long term impacts if foreign workers are deterred from coming to Canada when we need them because the system becomes unpredictable.
While it is acknowledged that there are employers and consultants abusing this system, there is a lot of potential to improve the program by ensuring the employer compliance regime is upheld. For example, ESDC could create better systems to vet employers during processing to ensure they prevent common compliance issues once a worker is already in Canada (i.e. recuperating travel and LMIA costs and access to affordable housing).
The Government has hinted that there may be additional changes to the high-wage LMIA program and it remains to be seen if there will be changes to LMIA-exempt work permit programs. Additionally, the Government has hinted at potential changes to permanent resident numbers. These recent changes to Canada’s immigration system will undoubtedly have short and long term impacts.
It is in Canada’s best interests for the Government to promote the crucial benefits of immigration and policies that align with Canada’s long term economic goals. Mixed messaging has a negative impact on public opinion and the integrity of Canada’s immigration system. A properly functioning immigration system is critical to attracting and retaining foreign workers and preventing onwards migration.
In light of these changes, now is a critical time for employers and prospective temporary foreign workers to be aware of these changes and seek proper counsel to prevent common errors in applications to have the best chance of success.
Listen to Laura Schemitsch speak about the recent changes to Canada’s Temporary Foreign Program on Global News the Jas Johal Show on 26 August 2024: https://globalnews.ca/bc/program/cknw-afternoon-show
Contact Heron Law Offices today for a consultation on your immigration matter.
