Canada | Labor market impact assessments policy update

The Canadian government announced labor market impact assessments will no longer be processed for the low-wage stream within the Temporary Foreign Worker (TFW) program.

Key Points:

• Effective Sept. 26, the government will refuse to process labor market impact assessments in census metropolitan areas with an unemployment rate of 6% or higher, subject to exceptions for jobs in food security sectors.
• In addition, the maximum duration of employment for workers hired through the low-wage stream will be reduced to one year (from two years).
• Employers will be allowed to hire no more than 10% of their total workforce through the low-wage stream within the TFW program.

Additional Information: As BAL previously reported, the Canadian government has recently announced changes to the TFW program as part of an effort to reduce the number of temporary residents in Canada. Officials stated that exceptions to the maximum employment percentage will be granted for seasonal and non-seasonal jobs in the food security, construction and healthcare sectors. Construction and healthcare sectors will still be allowed to have up to 30% of their workforce on low-wage work permits, and the cap exemption for the agriculture sector and seasonal employers will remain in place.

BAL Analysis: Government officials stated that the TFW program has been used to circumvent hiring talented Canadian workers in recent years, and reductions in access to the program and strengthened compliance measures are being introduced. The government hopes to prevent misuse and fraud and further reduce the reliance of Canadian employers on the program.

This alert has been provided by the BAL Global Practice Group.

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