New LMIA Changes 2024: Canada to stop accepting Low-Wage LMIAs for the Temporary Foreign Worker Program effective September 26
Are you an employer or foreign worker interested in Canada’s Temporary Foreign Worker Program? Big changes are coming on September 26, 2024. The Canadian government is updating its Labour Market Impact Assessment (LMIA) process, which will affect how businesses can hire foreign workers. Let’s break down these new LMIA changes and what they mean for you.
What is LMIA and the Temporary Foreign Worker Program?
Before we dive into the changes, let’s quickly review what LMIA and the Temporary Foreign Worker Program (TFWP) are all about.
An LMIA is a document that Canadian employers need to hire a foreign worker. It shows that no Canadian worker is available to do the job. The TFWP allows Canadian employers to hire foreign workers to fill temporary labor shortages.
Key Changes to the LMIA Process
Now, let’s look at the major updates coming to the LMIA process:
- No Low-Wage LMIAs in High Unemployment Areas
Starting September 26, Employment and Social Development Canada (ESDC) won’t process LMIAs for low-wage categories in areas with unemployment rates of 6% or higher. This change aims to prioritize job opportunities for local workers in these regions.
In order to qualify for LMIA after these changes you need you have a job offer at or higher than Median Wage according to the area where your are applying-
Here’s the list of Median Wage by Province and Territory– Source Canada.ca
| Province/territory | Median hourly wages before April 2, 2024 | Median hourly wages as of April 2, 2024 |
|---|---|---|
| Alberta | $28.85 | $29.50 |
| British Columbia | $27.50 | $28.85 |
| Manitoba | $23.94 | $25.00 |
| New Brunswick | $23.00 | $24.04 |
| Newfoundland and Labrador | $25.00 | $26.00 |
| Northwest Territories | $38.00 | $39.24 |
| Nova Scotia | $22.97 | $24.00 |
| Nunavut | $35.90 | $35.00 |
| Ontario | $27.00 | $28.39 |
| Prince Edward Island | $22.50 | $24.00 |
| Quebec | $26.00 | $27.47 |
| Saskatchewan | $26.22 | $27.00 |
| Yukon | $35.00 | $36.00 |
Sources:
- Wage rates before April 2, 2024 (column 2): Statistics Canada, Labour Force Survey, 2021 to 2022, based on National Occupational Classification (NOC) 2021
- Wage rates as of April 2, 2024 (column 3): Statistics Canada, Labour Force Survey, 2022 to 2023, based on NOC 2021
However, there are exceptions. The government will still process LMIAs for seasonal and year-round jobs in:
- Food security sectors (farming, food processing, fish processing)
- Construction
- Healthcare
These exceptions ensure that critical industries can still access the workers they need.
- 10% cap on hiring through LMIA
Employers will now be limited to hiring only 10% instead of 20% of their total workforce through the TFWP. This is a significant reduction and pushes companies to focus more on hiring local talent.
- Shorter Work permits for Low-Wage Positions
The maximum employment duration for workers in the Low-Wage stream will be cut from two years to just one year. This change could impact both employers’ long-term planning and foreign workers’ Canadian work experience.
Why These LMIA Changes?
Employment Minister Randy Boissonnault explains, “The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions.”
The government wants to:
- Address rising unemployment (currently at 6.4% as of June 2024)
- Encourage hiring of Canadian workers, including young people, newcomers, and persons with disabilities
- Push employers to invest in retaining and upskilling current employees
Impacts on Different Sectors
While food security, construction, and healthcare sectors have some exemptions, other industries might face challenges. Businesses relying heavily on temporary foreign workers may need to rethink their hiring strategies, especially in the food sector.
What these new changes in LMIA Means for Employers?
If you’re an employer, you might need to:
- Revise your hiring strategies to focus more on local talent
- Invest in training and upskilling programs for current employees
- Adjust your business model if you’ve been relying heavily on temporary foreign workers
What This Means for Foreign Workers?
For foreign workers, these changes could mean:
- Fewer job opportunities in certain areas of Canada
- Shorter work terms in low-wage positions
- A potential shift in target locations or sectors for work in Canada
Future Canadian Immigration projections
The Canadian government isn’t stopping here. Over the next 90 days, they’ll review the High-Wage stream of the TFWP. This could lead to more changes, including:
- Adjustments to existing LMIA applications
- New sectoral exceptions
- Possible restrictions on processing certain LMIA applications, even in rural areas
Conclusion
These new LMIA changes represent a significant shift in Canada’s approach to temporary foreign workers. The program has faced critical criticism due to its loopholes and unfair substandard employment practices. The goal is to balance the needs of the Canadian economy with opportunities for Canadian workers.
Whether you’re an employer or a foreign worker, it’s crucial to stay informed about these changes. They could significantly impact your hiring practices or your plans to work in Canada.
Remember, these policies can evolve. Always check the official ESDC and Immigration, Refugees and Citizenship Canada (IRCC) websites for the most up-to-date information.
As Canada continues to refine its immigration and labor policies, one thing is clear: the landscape for temporary foreign workers is changing. Adapting to these changes will be key for both businesses and workers in the coming years.
