Canada’s Immigration Minister, Marc Miller, has announced plans to decrease the intake of temporary foreign workers, signalling a notable departure from the nation’s previously generous immigration policy.
Miller emphasised a significant rise in the admission of temporary residents in Canada in recent years.
“During a briefing, Marc Miller remarked, ‘Canada has witnessed a considerable increase in the volume of temporary residents recently.”
Miller acknowledged the country’s reliance on temporary foreign workers to address labor shortages but stressed the need for improvements to enhance the efficiency of the system.
The Federal Government is proposing to adjust the number of temporary residents so that they constitute no more than five percent of the national population over the next three years.
This marks a notable decrease from the current 6.2 percent, which amounts to approximately 2.5 million individuals.
As Canada undergoes substantial population growth fuelled by high levels of immigration, the adjustment comes at a time when job creation is being outpaced.
This influx involves international students, foreign workers addressing employment gaps, and individuals displaced by conflicts and natural disasters.
Key changes and potential impacts
Starting from May 1, 2024, new Validity of Labor Market Impact Assessments (LMIAs) will be valid for six months (reduced from 12 months). This change aims to ensure accurate assessment of labour market needs. Employers will need to act more swiftly when hiring foreign workers.
The Purpose of LMIAs is used to confirm the need for foreign workers in specific job positions. They ensure that no Canadian worker or permanent resident is available for the job.
Employers apply through Employment and Social Development Canada (ESDC). Application process varies based on the program’s high-wage, low-wage, and sector.
A positive LMIA indicates a valid job offer and the need for a foreign worker, thus allowing foreign workers to apply for work permits.
Some situations allow hiring without an LMIA, e.g., the International Mobility Program. Francophone Mobility also exempts employers from LMIA requirements for bilingual workers.
Employers identified in the 2022 Workforce Solutions Road Map will experience a reduction in the proportion of their workforce that can come in through the program’s low-wage stream.
The reduction expected is up to 20% to 30% of their total workforce. Exceptions apply for the construction and healthcare sectors. Nonetheless, fewer job opportunities will be available for foreign workers in certain industries.
Employers will also be encouraged to explore all options before applying for an LMIA, including recruiting asylum seekers with valid work permits already in Canada.
Foreign workers may face increased competition from asylum seekers, however, employers will need to maintain fair wages.
The Canadian government aims to reduce reliance on foreign workers and encourage employers to hire locally. The policy underscores the need for employers to consider Canadian workers first.
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