Rises Multiple Caps to Make It Easier For Employers to Hire Foreign Workers

Canada is making it easier for employers to hire temporary foreign workers. Since Canada is experiencing a low unemployment rate and high job vacancies at the same time, the government introduced measures that address the labour shortage. In order to accomplish this, the government announced five major changes related to TFWP.

LMIAs to Last For 18 Months

Previously, Labour Market Impact Assessments (LMIAs) were only valid for six months. Starting immediately, they will last for a year and a half. LMIAs are documents that show the Canadian government that the labour market will not suffer any negative impacts if a foreign worker is employed in the country.

Effective from April 30, Canada will end its policy of automatically rejecting LMIA applications for low-wage occupations in sectors with an unemployment rate of more than 6%.

Maximum Duration of Employment Extended

High-Wage and Global Talent Stream workers’ employment duration will be extended to a maximum of three years, instead of the previous two. This will also help them to apply for permanent residency in the future and enable them to continue contributing to the Canadian labour market.

Seasonal Cap Exemption Permanent

There will be no more limits on how many low-wage seasonal positions employers can fill. While there was a 180-day limit in place, this has been extended to 270-days.

Specific Can Hire 30% Of Their Workforce Through TFWP

Starting April 30, employers of sectors with demonstrated labour shortages will be able to hire up to 30% of their low-wage workforce through TFWP for a year. These sectors include:

  • food manufacturing;
  • wood product manufacturing;
  • furniture and related product manufacturing;
  • accommodation and food services;
  • construction;
  • hospitals; and
  • nursing and residential care facilities

Employers that do not meet this criterion will be able to hire up to 20% of their workforce through the program. This will be valid until further notice.

Job Vacancy Reaches a Historic Peak

Low-wage occupations account for most of the unmet labour demand. In November 2021, labour shortages in manufacturing, retail, health care, and food services resulted in the highest job vacancy rate in Canadian history.

Despite the Temporary Foreign Worker Program approving around 5,000 positions under the Global Talent Stream, 23,000 positions in the High-Wage stream, and 60% of all foreign nationals working in agriculture, the lack of available labour is more apparent now than it was before the pandemic.