Canada To Halt Low-wage LMIA Processing In Select Cities

Canada will stop accepting LMIAs from 26th September 2024, for the Low-Wage stream of the TFWP in some of the CMAs.

ESDC will not be accepting any LMIAs for low-wage occupations in CMAs where the unemployment rate is 6 percent and above. Particular cities that will be impacted have not been disclosed.

Exceptions and Restrictions

but persons will be allowed to start jobs in the food security Sectors such as primary agriculture food processing Fish processing construction and health care Sectors. Furthermore, employers will be able to hire only 10% of the TFWP workforce, and the period for a stay of persons in the Low-Wage stream will be limited to 12 months from 24 months.

Minister’s Statement to Justify Shifts in Programs

The Minister for Employment, Workforce Development, and Persons with Official Language Needs, Randy Boissonnault explained that the purpose of these changes is to decrease dependence on TFWP. “The Temporary Foreign Worker program was meant for the gaps in the labor market with Canadian talent being unavailable for the positions today, there is qualified Canadians for those opportunities These changes will focus more on Canadians and make sure the program serves our expectations for the economy.

Current Unemployment Trends

Recent data from the Labour force survey show that in Canada unemployment rate has increased to 6 percent. 4 % is currently estimated to reach 1. 4 million unemployed individuals. The Minister pointed out that these novelties are aimed against abuse and deceit in the frame of TFWP and stress the importance of Canadian employers in supporting the retraining and skill enhancement of its existing employees.

Review of High-Wage Stream

ESDC is also slated in the next 90 days to evaluate the High-Wage stream of the TFWP which may trigger adjustments to the LMIA applications, sectoral exceptions, or even more restrictions – including those in rural regions. The TFWP continues to be the most popular pathway for foreign workers to gain a taste of the Canadian job market with employers having to apply for an LMIA to determine the impact of foreigners on the Canadian employment market and economy.