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Canada making changes to temporary foreign worker program

OTTAWA, ON – The Canadian government is making changes to its temporary foreign worker program in the wake of criticism the system is rife with misuse and fraud.

The Temporary Foreign Worker (TFW) Program’s purpose was to fill job vacancies that qualified Canadians and permanent residents were unable to fill. According to the government, the TFW program has been used to circumvent hiring workers in Canada.

Canada loosened rules around the TFW program following the COVID-19 pandemic due to a labour shortage.  That resulted in an increase in the number of TFW workers in low wage jobs.

The number of temporary foreign workers approved to come work in Canada in 2023 was 239,646. In 2018, that number was nearly 109,000.

“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 changes we are making today will prioritize Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy,” stated Randy Boissonnault, minister of employment, workforce development and official languages.

On Aug. 26, the minister announced that a series of changes to the TFW program will take place effective Sept. 26.

• In census metropolitan areas with an unemployment rate of 6 per cent or higher, the Canadian government will no longer process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare.
• Employers will be allowed to hire no more than 10 per cent of their total workforce through the TFW program. This maximum employment percentage will be applied to the Low-Wage stream and is a further reduction from the March 2024 reduction. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as healthcare and construction.
• The maximum duration of employment for workers hired through the low-wage stream will be reduced to one year (from two years).

The United Nations criticized the program in a recent report, which stated the program was “a breeding ground for contemporary forms of slavery.”

Workers who are part of the TFW program are in Canada on a close work permit, which means they are only allowed to work for the employer who sponsored to bring them to the country. According to the UN report, that creates a power imbalance which can result in wage theft, excessive work hours, physical and sexual abuse, and exploitation.

In a recent Bank of Canada monetary report, it was noted the nation’s population has grown by 2.3 million people in the last two years, with nearly all that growth coming from newcomers, which includes temporary foreign workers, immigrants and asylum seekers.

Critics have argued the program has led to a rise in the unemployment rate among Canada’s youth as the jobs that traditionally employed young workers are now being taken by TFW workers.

According to the Bank of Canada, the nation’s overall unemployment rate is 6.4 per cent. However, the unemployment rate for newcomers or immigrants is 11.6 per cent. For youth (people between the ages of 15 and 24), the unemployment rate is at 13.5 per cent. In 2022, the unemployment rate for both groups was 6.9 per cent and 9.3 per cent, respectively.