Employment and Social Development Canada recently announced updates to the Global Talent Stream and High-Wage Stream of the Temporary Foreign Worker Program that are set to take effect from April 30.

In the announcement, the validity of the LMIA was increased from 9 months to 18 months. This change comes as a relief to foreign workers who have entered Canada on the basis of an LMIA.

Ottawa has also announced that it will end the policy of automatic refusal of LMIA for occupations with low wages in the Retail Trade and Accommodation and Food Services industries in regions that have an unemployment percentage of 6 percent or higher.

Candidates selected under these streams are now allowed to work for an additional year, i.e., three years instead of two.

The limit on the number of Temporary Foreign Workers that can be hired in seasonal industries was also removed. The limit of working days for such workers was also increased from 180 days to 270 days per year.

One of the biggest changes announced was that employers in the following industries can now hire foreign workers up to 30 percent of their workforce, a drastic increase from the 20 percent most industries are now allowed to hire.

  1. Construction
  2. Hospitals
  3. Food Manufacturing
  4. Wood Product Manufacturing
  5. Furniture and Related Product Manufacturing
  6. Accommodation and Food Services
  7. Nursing and Residential Care Facilities

The Temporary Foreign Worker Program is an innovative program that allows Canadian employers the ability to temporarily hire foreign nationals in order to fill shortages in Canada’s labor force. It also ensures the rights and protections of these foreign workers.

Under this program, temporary foreign workers can be hired through the following streams:

  • Global Talent Stream
  • Foreign Agricultural Workers
  • High-Wage Workers
  • Low-Wage Workers
  • In-Home Caregivers
  • Foreign Academics

The biggest requirement for a TFWP is the Labor Market Impact Assessment. Any employer or business looking to hire a foreign national through TFWP must first obtain an LMIA demonstrating that they were unable to find a Canadian citizen or permanent resident to fill the position. Only after obtaining this document can the employer officially hire a foreign national, thus enabling the newcomer to apply for a Canadian work permit or PR.

Quote by Minister of Employment, Carla Qualtrough:

“As the needs of Canada’s workforce change, we are adjusting the Temporary Foreign Worker Program to meet them. We’ll continue to work with provinces, territories, and other partners to build the strong, skilled workforce Canada needs to support our growing economy.”

Back in January, Prime Minister Trudeau had emphasized the reduction of application processing times, and addressing the delays that have been impacted by COVID-19. Over 1.8 million applications are still being processed in the IRCC database adding to the backlog.

Trudeau had also asked the Minister to coordinate and partner with the Minister of

Employment in the establishment of a Trusted Employer system for Canadian

companies hiring temporary foreign workers.

In a worrying statement made by Statistics Canada back in January, by 2050, Canada will have lost a significant portion of its working-age individuals and its future workforce. If the labor market approach and policies do not change, this shortage will be crippling for Canada’s economic growth. Immigration is one of the solutions towards reducing shortages but it needs to be streamlined and improved to attract more newcomers to work and settle down in the country.

If you are looking to Study, Work, Visit or Migrate to Canada, talk to I Can Help Immigration Services, Canada’s No.1 Immigration & Visa Company to get the best help you need