Randy Boissonnault, the Minister of Employment, Workforce Development and Official Languages, Canada, revealed the changes to TFWP’s Special Measures, i.e., the Temporary Foreign Workforce Solutions Road Map, on October 26, 23. These modifications are to support employers in addressing critical labor shortages through the Temporary Foreign Worker Program (TFWP). 

The Temporary Foreign Workforce Solutions Road Map in Canada is an ongoing strategy developed by the government with the aim of helping employers adapt to the Temporary Foreign Worker Program or TFWP to meet the evolving economic and labor conditions in the country. 

Changes to TFWP’s Special Measures: The Temporary Foreign Workforce Solutions Road Map 

As per the recent update, the following adjustments have been introduced to the Temporary Foreign Workforce Solutions Road Map. 

  • Employers in the seven specific fields remain entitled to hire up to 30% of their employees in low-wage positions via the Temporary Foreign Worker Program (TFWP). These include Wood Product Manufacturing, Furniture and Related Product Manufacturing, Food Manufacturing, Accommodation and Food Services, Hospitals, Nursing and Residential Care Facilities, and Construction. 
  • For positions paying under the provincial or territorial minimum wage, a two-year work duration must be maintained. 
  • The Labour Market Impact Assessments (LMIAs) will now have a validity of a maximum of 12 months instead of a maximum of 18 months, and 
  • Beginning on January 1, 2024, the employers will have to do annual assessments of the wages of their temporary foreign workers. This will make sure that the wages are equivalent to the current wage rates of the specific occupation and area of employment. 

All these changes to TFWP’s special measures are scheduled to remain in effect until August 30, 2024. However, there is flexibility to the provisions, which allow adjustments to these measures as required on the basis of the changes in the labor market and economic conditions. 

Although Canada has made significant headway in overcoming historic labor shortages following the COVID-19 pandemic, certain fields, such as those mentioned above, continue to have ongoing worker shortages that the country cannot address internally. 

In September, the unemployment rate was recorded to be 5.5%. Regardless of the record levels of immigration, this rate has remained steady over the last three months. 

In reality, the demand for employers for the Temporary Foreign Worker Program (TFWP) has significantly grown (around 40%) in comparison to the similar time past year. This indicates continuing job vacancies. 

Temporary Foreign Worker Program (TFWP): What is it? 

Canada’s Temporary Foreign Worker Program (TFWP) is one of the major work permit programs in Canada. It is used by Canada’s immigration department, IRCC, to manage the country’s labor market shortages via immigration. 

The TFWP comprises various immigration streams, such as live-in caregiver streams, high and low-wage foreign worker streams, and agriculture streams. Under this program, Canadian businesses may employ foreign workers to work in Canada. 

Notably, Canadian employers require a Labour Market Impact Assessment (LMIA) to hire foreign workers. It’s an official document required for the approval process, which the Canadian government uses to determine whether a Canadian Permanent resident or citizen could have been selected for the same job position. 

A foreign worker may be appointed if the LMIA provides a favorable or neutral decision. If the LMIA does not support the hiring of the employee, the government will refuse the work permit application. 

Typically, LMIA-supported work permits are restricted to a specific company or employer. 

One of the critical components of the TFWP is Employer compliance. Notably, the Government of Canada keeps online records of employers who were discovered to be non-compliant with the TFWP criteria, including the working conditions, salaries, worker’s rights, and more. Additionally, it has also implemented a safety program for vulnerable workers related to the program. 

Furthermore, IRCC has also introduced a Recognised Employer Pilot (REP) in order to facilitate the LMIA process for reliable employers. 

This is especially true for employers or companies who had an outstanding record in terms of the TFWP, demonstrating the critical role that these workers performed in addressing long-term job vacancies.