UW Immigration

New Changes to Canada’s Work Permit and LMIA in 2024

In response to severe labor shortages and the need to strike a balance between the needs of Canadian sectors and the employment of foreign workers under particular conditions, Canada implemented significant changes to the Temporary Foreign Worker Program on May 1, 2024.

Reduced Validity of LMIA: Previously valid for twelve months, the Labor Market Impact Assessments will now only be valid for six months. This modification guarantees that the labor market conditions are promptly and accurately represented. It is crucial to remember that this concerns the validity of the LMIA rather than the length of the work visa.

Include Asylum Seekers: Before filing an LMIA, employers are now obligated to take into account asylum seekers who possess valid work permits as possible employees. This is on top of the current mandate that you show that you’ve tried to hire Canadian nationals and/or permanent residents.

Lower Cap in Low-Wage Stream: The upper limit on the percentage of the workforce that is eligible to apply for the TFWP’s low-wage stream has been lowered from 30% to 20% for the majority of industries, with the exception of construction and healthcare.

Annual Pay Evaluations for Temporary Foreign Employees: On January 1, 2024, a significant regulation went into effect that requires firms to evaluate the compensation of temporary foreign workers on a yearly basis. This guarantees that pay are in line with what their respective fields’ current market rates are.

Overview of the Temporary Foreign Worker Program (TFWP)

When competent Canadians are not available, the TFWP permits Canadian firms to temporarily fill labor and skill shortages by hiring foreign nationals. An essential component of Canada’s workforce management strategy across multiple industries is this program.

Economic Context

632,000 job vacancies were available in Canada as of January 2024, down from a record high of 983,600 in the second quarter of 2022 across all industries. This decline is a reflection of how the labor market and the economy have changed in response to different national and international causes.

Industries Affected

The 2022 Workforce Solutions Roadmap included several key industries where changes will be particularly impactful:

  • Food Manufacturing (NOC 311)
  • Product Manufacturing (NOC 321)
  • Furniture and Related Product Manufacturing (NOC 337)
  • Accommodation and Food Services (NOC 72)
  • Construction (NOC 23)
  • Hospitals (NOC 622)
  • Nursing and Residential Care Facilities (NOC 623)

These sectors will need to adjust their hiring practices and workforce planning to comply with the new regulations.

Conclusion

The Temporary Foreign Worker Program in Canada has undergone recent modifications as a calculated response to the labor shortage and the requirement to give priority to domestic employment. Canada seeks to promote sustainable economic growth and help the Canadian workforce respond to these changes by modifying policies and regulations.

Keep up with the latest information on work permits, visa procedures, routes to permanent residency, and visa-sponsored employment to be well-informed and ready to handle these changes in workforce planning.

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