Canada has introduced new regulations to the Temporary Foreign Worker (TFW) Program, effective September 26, 2024. These changes aim to reduce reliance on
low-wage foreign workers and ensure that Canadian workers are prioritized. The updates will
have a significant impact on both employers and jobseekers. Here’s an overview of the key
changes and what they mean for Canada’s labor market.

Key Changes to the TFW Program

Cap on Low-Wage Foreign Workers

Canada has introduced new regulations to the Temporary Foreign Worker (TFW) Program, effective September 26, 2024. These changes aim to reduce reliance on low-wage foreign workers and ensure that Canadian workers are prioritized. The updates will significantly impact both employers and job seekers applying for a Canada Visa. Here’s an overview of the key changes and what they mean for Canada’s labor market.

Canada Visa: Labour Market Impact Assessments (LMIAs)

The Labour Market Impact Assessment (LMIA) process will also see changes. LMIAs in
the Low-wage Stream will now only allow a one-year work duration, making it clear that
foreign workers are to be used for temporary roles. Employers must prove that no qualified
Canadians are available before turning to foreign labor. This rule will not apply to the Primary
Agriculture Stream, which remains exempt from these limitations.

Refusal to Process Policy (RTP)

A new Refusal to Process (RTP) policy will apply in regions where the unemployment
rate exceeds 6%. In these areas, employers will not be able to hire foreign workers unless
they are in critical sectors like healthcare or construction. This policy is designed to ensure
that employers in high-unemployment regions prioritize hiring Canadian workers.
Unemployment data will be reviewed quarterly to keep this policy aligned with labor force
conditions.

Canada Visa: Why These Changes?

The Canadian government introduced these updates to address concerns that the TFW Program was being overused, particularly for low-wage jobs. Between 2018 and 2023,
low-wage TFW positions surged from 21,394 to 83,654, largely due to labor shortages
during the COVID-19 pandemic.
The goal is to push employers to invest in hiring and training local talent, especially groups
like youth, immigrants, and individuals with disabilities. By doing so, Canada aims to build a
more inclusive workforce that meets the needs of a changing economy.

Concerns From Business Owners

Many business owners, especially in sectors like construction and food processing, have
voiced concerns about the new rules. They argue that it’s difficult to find qualified local
workers, and the new restrictions could hurt their businesses. Some fear that the changes
will make it harder to stay operational, particularly in areas where labor shortages are
severe.

Impact on Foreign Workers

For foreign workers, the changes will make it more difficult to secure low-wage jobs in
Canada, as tighter caps and shorter work durations limit opportunities. However, there will
still be demand for foreign labor in key sectors like healthcare and construction, where
shortages persist.

Conclusion

Canada’s new Temporary Foreign Worker Program rules aim to reduce the country’s
reliance on low-wage foreign labor and ensure that Canadian workers are prioritized. While
these changes create challenges for both employers and foreign jobseekers, they reflect
Canada’s broader efforts to foster a sustainable, inclusive workforce. Future adjustments
may follow as the government continues to monitor labor market conditions.