On October 21, 2024, Employment and Social Development Canada (ESDC) announced that, effective November 8, 2024, the starting hourly wage for workers coming into Canada through the high-wage stream will be increased to 20% higher than its current level, which is the median wage in the applicable province or territory of work. This represents an increase to the existing threshold of between CAD 5 and CAD 8 per hour, depending on the province or territory of work.
As a result, a greater number of jobs are expected to be subject to the stricter rules of the low-wage stream, including additional employer requirements related to housing, transportation and recruitment of workers already in Canada.
ESDC also announced that, starting on October 28, 2024, employers will no longer be able to use attestations from professional accountants or lawyers to prove their business legitimacy. He added that the Temporary Foreign Worker (TFW) Program will further build on existing information sharing agreements with provincial and territorial partners, as well as existing employer registries, to enhance data sharing. These measures will help to ensure that only genuine and legitimate job offers are approved, helping prevent misuse of the program and ensuring stronger worker protection.
Background
The low-wage stream and high-wage stream are two components of the TFW Program, differentiated by the wage level offered. There are key differences between the streams:
- The low-wage stream is for jobs where the wage offered is below the provincial or territorial median hourly wage plus 20%. Under this stream:
- employers must provide supports for workers that include return transportation to their country of origin and ensuring or providing suitable accommodation;
- employers must conduct at least two additional methods of recruitment that are consistent with the occupation (targets an audience that has the appropriate education, professional experience and or skill level required for the occupation);
- employers are limited to a temporary foreign worker complement of 10% of their workforce at any worksite (up to 20% for certain high-demand sectors); and
- the TFW Program will not process LMIA applications for positions in Census Metropolitan Areas (CMA) where the unemployment rate is 6% or higher.
- The high-wage stream is for jobs where the wage offered is above the provincial or territorial median hourly wage plus 20%. Under this stream:
- there is currently no limit on the number of workers an employer can hire; and
- CMA unemployment rates are not taken into consideration in LMIA application assessments.
The changes announced are forecasted to result in 34,000 positions moving from the high-wage stream to the more stringent rules of the low-wage stream. This shift could result in as many as 20,000 fewer positions being approved through the TFW Program when combined with other policies in effect as of September 26, 2024, including the following:
- the Government of Canada no longer processes LMIAs in the low-wage stream in CMAs with an unemployment rate of 6% or higher (with some exceptions for high-demand sectors); and
- employers may hire no more than 10% of their total workforce through the TFW Program (with some exceptions for high-demand sectors).
Erickson Insights & Analysis
Erickson Immigration Group will continue to monitor developments and share updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or case-specific questions.