Under these extended measures, employers in these sectors can maintain the hiring of up to 30 percent of their workforce for low-wage positions through the Temporary Foreign Workers program,, while also maintaining a two-year duration cap for positions under the provincial or territorial minimum wage.
Canada’s Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, unveiled crucial changes to the Temporary Foreign Worker (TFW) program.
These changes are part of the updated Temporary Foreign Workforce Solutions Roadmap, aimed at helping employers in seven key sectors—Food Manufacturing, Wood Product Manufacturing, Furniture and Related Product Manufacturing, Accommodation and Food Services, Construction, Hospitals, and Nursing and Residential Care Facilities—address labor shortages, the CIC News reported.
Under these extended measures, employers in these sectors can continue to hire up to 30 percent of their workforce for low-wage positions through the TFW program. Additionally, a two-year duration cap for positions under the provincial or territorial minimum wage will be upheld.
Labor Market Impact Assessments will now have a reduced validity, dropping from a maximum of 18 months to 12 months. Starting Jan. 1, 2024, employers must conduct annual reviews of their temporary foreign workers’ wages to ensure they match the prevailing wage rates for their specific occupation and region.
These measures will remain in effect until Aug. 30, 2024, with the flexibility to adapt as the labor market and economic conditions evolve. Despite progress in addressing labor shortages, certain sectors in Canada continue to grapple with persistent workforce deficiencies.
In September, the unemployment rate held steady at 5.5 percent, a figure that has remained constant for the last three months, despite record levels of immigration.
Employer demand for the TFW program has surged by approximately 40 percent compared to the same period last year, indicating a continuing need for foreign workers in these sectors. Canada’s commitment to these changes underscores its dedication to addressing labor shortages and sustaining a robust economy.
According to a recent report by Statistics Canada, the number of temporary residents reporting income in Canada surged by nearly 150 percent between 2010 and 2020. Postgraduate work permit holders and international students with study permits drive this growth.
Canada’s federal government manages two key programs for temporary foreign workers and residents: the TFW program and the International Mobility program.
During the same period, the number of postgraduate work permit holders increased by 900 percent from 23,300 workers to 226,000.
Study permit holders reported income increased sevenfold, from 18,100 at the start of the decade to 153,000 at the end. The number of TFW program participants reporting income decreased by 12 percent over the same timeframe.
Statistics Canada also revealed that the employment dynamics have shifted, with male foreign workers becoming more likely to be employed than their female counterparts over the past decade.
The increase in work permit holders reflects employers’ growing reliance on International Mobility workers. In 2010, there were two International Mobility workers for every Temporary Foreign Worker. In 2021, the ratio surged to 5.6 International Mobility workers for every Temporary Foreign Worker.
The TFW program imposes more rigorous requirements and costs on employers, including the need for a Labor Market Impact Assessment to prove the necessity of hiring a temporary foreign worker and the unavailability of domestic workers for the job.
The TFW program and IMP
The TFW program, jointly administered by Employment and Social Development Canada and IRCC, allows Canadian employers to hire foreign nationals to address labor shortages. Canadian citizens and permanent residents are given priority for job vacancies.
In contrast, the IMP, managed solely by IRCC, serves a broader purpose. While it also addresses labor market needs, it aims to promote Canada’s economic, social, and cultural policy objectives. This program facilitates foreign workers’ entry into Canada to strengthen global ties and enhance cultural enrichment in Canada, encompassing areas such as arts, culture, sports, and religion.
A notable difference between the two programs is that the TFWP requires employers to complete the Labor Market Impact Assessment, a Canadian government labor market test, to ensure adherence to stringent requirements.
