Government of Canada Announces Reduction of the Number of Temporary Foreign Workers

Effective by September 26, 2024, the Government of Canada will refuse to process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream, applicable in census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare.

  • Employers will be allowed to hire no more than 10% of their total workforce through the TFW Program. This maximum employment percentage will be applied to the Low-Wage stream and is a further reduction from the March 2024 reduction. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as healthcare and construction; and
  • The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year (from two years).

The Temporary Foreign Worker (TFW) Program is designed as an extraordinary measure to be used only when qualified Canadians and permanent residents are not able to fill job vacancies.

The Government of Canada will continue to monitor labour market conditions and introduce further adjustments to the Program as needed in the coming months to ensure that only employers with demonstrable labour market needs have access to the Program. Within the next 90 days, further review will be undertaken of the Program, which could result in changes to the High-Wage Stream, to existing LMIA applications for which positions have not been filled, to sectoral exceptions, or refusing to process other LMIA applications, including for rural areas.

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.