Canada’s Temporary Foreign Worker Program (TFWP): Major Changes in 2024

In 2024, Canada’s federal government implemented transformative changes to the Temporary Foreign Worker Program (TFWP). These updates aim to balance labor market demands while addressing concerns over unemployment and workforce composition. Below, we explore these changes, their implications, and real-world applications.

Key Changes to the TFWP in 2024

1. Reduction in LMIA Validity

• Effective Date: May 1, 2024

• Summary: The Labour Market Impact Assessment (LMIA) validity period was reduced from 12 months to 6 months. This marks a return to pre-pandemic standards.

• Use Case: Employers in industries like technology or manufacturing must now expedite their hiring processes to secure skilled foreign workers. This change pushes companies to streamline their recruitment efforts, ensuring compliance with the shorter LMIA window.

2. Visitors No Longer Eligible to Apply for Work Permits from Within Canada

• Effective Date: August 28, 2024

• Summary: Foreign nationals with temporary resident visitor status can no longer apply for job-offer-supported work permits from within Canada. This policy ends a measure introduced during the pandemic.

• Use Case: Employers will now need to focus on proactive recruitment strategies outside Canada, particularly in sectors such as IT and healthcare, where skilled labor shortages persist.

3. Suspension of Low-Wage Stream LMIA Processing

• Effective Date: September 26, 2024

• Summary: LMIA applications under the low-wage stream are no longer processed in Census Metropolitan Areas (CMAs) with unemployment rates exceeding 6%.

• Exceptions: Seasonal jobs and roles in agriculture, food processing, fish processing, construction, and healthcare remain exempt.

• Use Case: Agricultural businesses leveraging the exemptions can continue sourcing seasonal workers to maintain crop production and supply chain stability, addressing critical food security concerns.

4. Reduction in Low-Wage Employment Duration

• Effective Date: September 26, 2024

• Summary: The maximum duration of employment for low-wage stream workers was reduced from two years to one year.

• Use Case: A construction company hiring through the low-wage stream must now plan for shorter employment cycles, prompting increased investment in employee onboarding and training.

5. Workforce Composition Caps Adjusted

• Effective Date: September 26, 2024

• Summary:

  • The cap for low-wage workers in most sectors dropped to 10% of an employer’s total workforce.

  • Construction and healthcare sectors retained a 20% cap.

• Use Case: Small businesses in retail may face challenges in staffing entry-level roles. Employers will need to explore automation or domestic talent pipelines to meet operational needs.

6. Attestations No Longer Accepted

• Effective Date: October 28, 2024

• Summary: Employers can no longer rely on attestations from lawyers, CPAs, or financial institution officials to prove their provision of goods or services.

• Use Case: Employers now require documented evidence such as invoices or contracts, ensuring transparency and reducing fraudulent claims.

7. Increased Wage Requirements for High-Wage Stream

• Effective Date: November 8, 2024

• Summary: Candidates must now earn the higher of two thresholds: 20% above the regional median wage or within the wage range of current employees in similar roles.

• Use Case: A software development firm in Toronto must reassess salary structures to attract international talent, ensuring alignment with the new wage thresholds.

8. Annual Work Permit Targets Introduced

• Summary: The government set a target of 82,000 net new TFWP work permits for 2025, with consistent targets for 2026 and 2027. This aligns with efforts to reduce temporary resident levels from 7% to 5% of Canada’s population by 2026.

Real-World Implications of the TFWP Changes

Agriculture and Food Security Farmers and food processors can continue to rely on the TFWP to address seasonal labor needs despite broader restrictions. This helps maintain food production levels and ensures supply chain continuity.

Healthcare Sector With healthcare caps maintained at 20%, hospitals and clinics can address staff shortages in critical areas such as nursing and eldercare, safeguarding public health services.

Technology Industry Higher wage requirements for high-wage stream workers encourage competitive compensation, attracting top-tier talent to Canada’s growing tech hubs.

Small and Medium Enterprises (SMEs) SMEs in low-wage sectors may struggle with reduced workforce caps, prompting investment in training programs for local talent or technology to automate low-skill tasks.

Conclusion

The 2024 changes to Canada’s Temporary Foreign Worker Program reflect a strategic shift towards balancing economic growth with domestic workforce development. These adjustments compel employers to innovate in recruitment and workforce management, ensuring compliance while addressing labor market demands.

For more insights and tailored guidance, contact our team to navigate these changes effectively.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. For specific guidance related to your situation, please consult a qualified immigration professional.