Canada will freeze the processing of Labour Market Impact Assessments (LMIAs) for low-wage jobs in cities with an unemployment rate of 6% or higher starting September 26, 2024.
This decision is part of a broader overhaul of the Temporary Foreign Worker (TFW) Programme, aimed at reducing reliance on foreign workers and prioritising Canadian talent.
Canada LMIA Document
An LMIA is a critical document Canadian employers need before hiring foreign workers.
The freeze aligns with the government’s strategy to focus the programme on local employment.
Under the new changes, employers must adhere to a 10% cap on the proportion of their workforce that they can hire through the TFW Programme, reduced from the 20% limit set in March 2024.
Additionally, the government will reduce the maximum employment duration for low-wage stream workers from two years to one year.
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Skilled professionals, including medical workers, engineers, and teachers, have embraced this trend.
Investing In the Canadian Workforce
Canada’s Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, highlighted the government’s commitment to investing in the Canadian workforce.
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He stated: “We designed the Temporary Foreign Worker Programme to address labour market shortages when qualified Canadians could not fill those roles.
“Right now, we know that there are more Canadians qualified to fill open positions.
“The changes we are making today will prioritise Canadian workers and ensure Canadians can trust the programme to meet the needs of our economy
“Despite these broad changes, exceptions will be made for critical sectors like primary agriculture, food processing, fish processing, construction, and healthcare.
“The government will continue processing LMIAs for these industries due to their essential role in the Canadian economy.
“Employers are encouraged to explore domestic talent pools, including young people, newcomers, and persons with disabilities”.
The government is also urging employers to invest in retraining and upskilling their current employees to adapt to the evolving economic landscape.
Furthermore, the Canadian government plans to monitor labour market conditions closely and make further adjustments to the TFW Programme as needed.
Reviewing Canada LMIA Applications
A review of the programme will hold within the next 90 days, potentially affecting the high-wage stream, sectoral exceptions, and the processing of existing LMIA applications.
Also, these changes are part of the government’s effort to reverse policies implemented during the pandemic to address severe labour shortages.
As the unemployment rate rose to 6.4% in June 2024, the government had already begun reducing the validity of LMIAs from 18 months to 6 months and lowering the cap on temporary foreign workers from 30% to 20%.