Canada has decided to stop processing Labour Market Impact Assessments (LMIAs) for low-wage jobs in cities where the unemployment rate is 6% or higher, starting on September 26, 2024.
So, what is an LMIA? It’s a paper that a Canadian boss might need before they can hire someone from another country to work in Canada.
This news, shared by Immigration News Canada, is part of a bigger plan to rely less on workers from other countries and focus more on Canadian workers.
The Temporary Foreign Worker (TFW) Program is a route that lets people who aren’t Canadian or permanent residents work in Canada when there aren’t enough Canadian workers to do certain jobs.
A Plan To Support Local Workers
The report says that some important sectors like farming, food processing, fish processing, building, and healthcare will still get their LMIAs processed.
Also, bosses can only hire up to 10% of their workers through the TFW Program, which is down from 20% since March 2024. The time low-wage workers can stay will also drop from two years to one year, as per Immigration News Canada.
The Minister of Employment, Randy Boissonnault, said the government wants to support Canadian workers. He explained,
“The Temporary Foreign Worker program was made to help when there weren’t enough qualified Canadians for the jobs. Now, we see more Canadians who can fill those roles. These changes will help Canadian workers first and make sure the program is useful for our economy.”
Bosses are now encouraged to look for workers within Canada, including young people, newcomers, and people with disabilities.
The government also wants bosses to invest in teaching new skills to their current workers to match the changing job market.
The government said they will keep checking on job market needs and might make more changes to the TFW Program if needed.
They plan to review the program in the next 90 days. This may change rules for high-wage jobs, special sectors, and current LMIA applications.
Key Points To Know
These changes are part of Canada’s efforts to move away from rules set during the pandemic that were meant to combat serious job shortages.
As the unemployment rate went up to 6.4% in June 2024, the government reduced LMIA validity from 18 months to 6 months and cut down the cap on foreign workers from 30% to 20%.
On August 20, 2024, a temporary hold on new TFW approvals for low-wage jobs in Montreal was announced, starting September 3, 2024, for jobs paying less than $27.47 per hour.
This means next month, Montreal will stop approving new TFW applications for low-wage jobs under $27.47 per hour.
These steps aim to prioritize Canadian workers in the job market. More changes are expected as the job market shifts.