Effective September 26, the Canadian government will significantly restrict the use of the Temporary Foreign Worker Program (TFWP) for low-wage positions in certain regions. The move aims to prioritize Canadian workers and address concerns about program misuse.

Employment and Social Development Canada (ESDC) will no longer process Labour Market Impact Assessments (LMIAs) for the Low-Wage stream of the TFWP in census metropolitan areas (CMAs) with an unemployment rate of 6% or higher. This means that employers in these regions will be unable to hire foreign workers for positions that pay below the median provincial hourly wage.

While the specific cities affected by the changes have not been disclosed, the government has confirmed that exceptions will be made for seasonal and non-seasonal jobs in food security sectors, such as agriculture, food processing, and fish processing, as well as construction and healthcare.

Additionally, employers will be limited to hiring no more than 10% of their total workforce through the TFWP, and the maximum duration of employment for workers hired under the Low-Wage stream will be reduced from two years to one year.

The government emphasizes that the TFWP was designed to address labor shortages when qualified Canadians were not available. However, with increasing unemployment rates and concerns about program abuse, the government believes it is necessary to prioritize Canadian workers.

The new restrictions are part of a broader effort to reform the TFWP and ensure its alignment with the government’s goal of creating a more equitable and sustainable labor market. The government is also reviewing the High-Wage stream of the TFWP and may implement changes to LMIA applications for positions that have not been filled or to sectoral exceptions.

Recent Changes in Montreal

On August 20, Quebec Premier François Legault announced similar restrictions on temporary foreign workers in the Montreal region. Starting September 3, both the Quebec provincial government and the federal Canadian government will suspend the processing of LMIA applications for certain low-wage occupations in Montreal.   

The changes to the TFWP are part of a broader effort by the Canadian government to address concerns about the program’s use and to better manage the influx of temporary residents in the country. The government has publicly criticized employers who take advantage of temporary foreign workers and ignore Canadian workers in favor of cheaper labor.

In addition to the changes to the TFWP, the government has announced a number of other measures to manage temporary resident levels, including a cap on international students and increased scrutiny of employer compliance with labor standards.