Canada has recently introduced stricter regulations for hiring temporary foreign workers (TFWs) to address concerns about exploitation and to prioritize Canadian workers. The key changes include:
- Caps on Foreign Workers: Employers can now only hire up to 10% of their workforce through the TFW Program in low-wage roles, reduced from 20%. Certain sectors such as agriculture, healthcare, and construction are exempt from this rule.
- Shorter Employment Duration: The maximum period of employment for TFWs in low-wage streams has been reduced from two years to one year, adding more uncertainty for workers and employers.
- Regional Restrictions: Labour Market Impact Assessments (LMIAs) for low-wage positions will no longer be processed in regions where the unemployment rate is 6% or higher, further tightening the use of foreign workers.
These changes aim to ensure that Canadian workers are prioritized, as the country’s unemployment rate has risen. The government is also encouraging employers to invest in local workforce development, including upskilling Canadian workers and tapping into underutilized groups like young people and newcomers.
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