There was an announcement in August from Immigration, Refugees and Citizenship Canada(IRCC) that there will be extensive changes to the Low-Wage Stream of the Temporary Foreign Worker Program (TFWP). There were considerable hints of the possible reduction in the number of permanent residents that were admitted to Canada each year.

Announcement in August from Immigration, Refugees and Citizenship Canada(IRCC)

A few changes included that the LMIAs for Low-Wage Stream positions would be limited to one year and restricted in certain areas with huge unemployment.

This change came along with the previous changes which restricted employers to not hire more than 10% of the workforce via the temporary work permit programs.

There has been a recent announcement on the 18th of September 2024 by the Government of Canada about its stricter rules for hiring temporary foreign workers. 

This also includes the changes that will apply to most work permits through Quebec’s Traitement Simplifié.

Now the most recent announcement brings in another addition to the existing, that being the 10% employer cap on low-wage workers will now be extended to occupations that fall under the Traitement Simplifié. The announcement also includes that the said cap is exempted for employers operating in the healthcare, food processing stores, and construction sectors.

Instead, they will have to maintain a 20% cap on temporary workers.

The announcement also goes on to clarify how the 6% unemployment rate will be calculated for the Census Metropolitan Areas. 

The unemployment rates are to be based on the rates provided in the first Labour Force Survey of each quarter. Employers operating in a CMA that has an unemployment rate of 6% or higher will not be eligible to receive an LMIA.

Let us take a quick shot at the various changes that are a part of the new announcement.

• Starting September 26, 2024, the government of Canada will refuse to process any LMIA under the Low-Wage Stream in metropolitan areas with an unemployment rate of 6% or higher. With limited exceptions (namely in the food security, healthcare, and construction sectors), Labour Market Impact Assessments (LMIAs) under the Low-Wage Stream of the TFWP, will not be processed in metropolitan areas with an unemployment rate of 6% or higher. 
• No more than 10% of an employer’s workforce can be hired through the TFWP Low-Wage Stream, with exceptions for the food security, healthcare, and construction sectors This cap currently sits at 20% for most sectors but as of September 26, 2024, this cap will be reduced to 10%. This means that a workforce cannot comprise more than 10% of workers that came through a Low-Wage LMIA. 
• Work permits issued under the Low-Wage Stream will be for one year, down from two years. Positions approved under the Low-Wage Stream will only be approved for one year. This means that a foreign national working in Canada under a Low-Wage Work Permit will only get their work permit for one year from the date of activation. If the company wishes to continue a foreign national’s employment after that one year, it needs to apply for a new LMIA for the position (assuming, of course, that the employee does not have alternative means to continue working in Canada). 
• The government has not ruled out additional measures affecting the High-Wage Stream of the TFWP. 
• In the press conference before the news release, Prime Minister Trudeau confirmed that the government is set to review proposed immigration levels in the fall of 2024.