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Canada announces new changes to the 2024 Canadian work permit

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The Temporary Foreign Worker Program (TFWP) in Canada has been revised. These modifications support hiring foreign workers by Canadian firms seeking a favorable Labour Market Impact Assessment (LMIA) before granting a work permit.

What is an LMIA?

Labour Market Impact Assessment is referred to as LMIA. Employment and Social Development Canada (ESDC) uses this procedure to determine whether hiring a foreign worker is actually necessary for an employer. If the LMIA is positive, the business can recruit a foreign worker since they are unable to find a suitable candidate in Canada.

Why the Changes?

Because the unemployment rate is rising and job openings are no longer at all-time highs, Canada made these adjustments. The unemployment rate increased by 0.3% from the previous month to 6.1% in March 2024.

In response, the Canadian government modified the TFWP to ensure that it is only applied in situations where no Canadians are qualified for the position.

Important Modifications Commencing on May 1, 2024 LMIA Validity Period

Instead of 12 months, new LMIAs are now valid for 6 months.
Employers now have six months from the date of hire to the date of the worker’s application for a work visa.

Employee Share of Low-Wage Stream

The majority of industries are required to decrease the proportion of their workforce that receives low wages from 30% to 20%.
The construction and healthcare sectors are exempt from this.
Employing Refugees:

Now, employers have to take into account hiring asylum seekers who have legitimate work permits.
They used to merely need to demonstrate that they were making an effort to hire Canadian nationals or permanent residents.

Sectors Affected by the 2022 Workforce Solutions Road Map

There are seven industries included by the Workforce Solutions Road Map:

  • Manufacturing of Food (NAICS 311).
  • Manufacturing of Wood Products (NAICS 321).
  • Manufacturing of Furniture and Related Products (NAICS 337).
  • Services related to lodging and food (NAICS 72).
  • Building (NAICS 23).
  • Hospitals: NAICS Code 622.
  • Facilities for Nursing and Residential Care (NAICS 623).
  • Pay Evaluations by Employers for Temporary Foreign Employees.

Employers are required to review and amend the compensation of temporary foreign workers annually as of January 1, 2024. This guarantees that employees receive pay that is commensurate with the going rates for their position and area.

What is the Temporary Foreign Worker Program (TFWP)?

When there are no suitable Canadian candidates for a position, employers in Canada are permitted by the TFWP to engage foreign workers.

Jobs Available Right Now in Canada

In Canada, there were 632,100 open positions as of January 2024. The number of job openings has decreased from the record high of 983,600 in the second quarter of 2022.

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