Altec’s Insight | Adapting to the 2024 Temporary Foreign Worker Program Changes: Strategies for Employers and Foreign Workers

As of August and September 2024, Canada’s Temporary Foreign Worker Program (TFWP) and Labour Market Impact Assessment (LMIA) processes have undergone significant changes. These updates aim to reduce the nation’s reliance on temporary foreign workers while encouraging the hiring and upskilling of Canadian citizens. However, the changes have brought new challenges for both employers and foreign workers. In this article, we’ll explore the key updates and provide strategies to help employers and workers adapt to these regulatory shifts.

Key Changes to the TFWP and LMIA in 2024

1. Cap on Low-Wage Temporary Foreign Workers As of September 26, 2024, a new nationwide cap limits employers to hiring a maximum of 10% of their workforce from the Low-Wage Stream under the TFWP. Previously, this cap was 20%, making it easier for employers to fill roles with foreign labor. Certain sectors, such as healthcare, construction, and food processing, are still allowed a 20% cap due to ongoing labor shortages, but most employers are facing stricter limits.

2. Reduced Validity of LMIAs Another significant change is the reduction of LMIA validity periods for Low-Wage Stream positions from two years to just one year. Employers will now need to reapply for LMIA approval more frequently, increasing administrative workloads and adding pressure to workforce planning.

3. Refusal to Process (RTP) Policy with Exemptions The new Refusal to Process (RTP) policy prevents the processing of LMIAs for low-wage positions in regions where the unemployment rate exceeds 6%. This is intended to prioritize the hiring of Canadian workers in areas experiencing higher unemployment. However, there are key exemptions under this policy. LMIAs for low-wage positions will still be processed for certain high-need sectors, including:

• Healthcare: Positions such as nurses, personal support workers, and other health-related occupations are exempt from the RTP policy, ensuring that Canada’s healthcare sector can access foreign workers to meet critical needs.

• Construction: Skilled tradespeople such as carpenters, electricians, and construction laborers are exempt, as the construction industry faces ongoing labor shortages.

• Food Processing: Jobs in the food processing industry, particularly in roles like meat processing, fishery workers, and agriculture-related positions, remain exempt from the RTP policy.

These exemptions recognize that certain sectors face chronic labor shortages despite local unemployment rates, and they ensure that critical roles in healthcare, construction, and food processing can still be filled by foreign workers when necessary.

4. Temporary Freeze in Quebec

In Quebec, the Montreal region will experience a temporary suspension on processing new LMIA applications for low-wage positions for six months, starting from September 3, 2024. This freeze applies to jobs with wages below Quebec’s median wage, creating significant challenges for employers in affected sectors.

Strategies for Employers

While the changes may seem overwhelming, there are steps that employers can take to adapt to these new regulations and maintain a stable workforce:

1. Focus on Upskilling Local Workers One of the primary goals of the government’s updated policies is to reduce the reliance on foreign labor and encourage employers to invest in the Canadian workforce. Employers should consider offering more training programs, apprenticeships, and development opportunities to local workers, which can help fill low-wage positions with Canadian citizens and permanent residents.

2. Diversify Your Workforce Strategy Instead of relying solely on temporary foreign workers, consider tapping into other pools of potential employees, such as new immigrants, recent graduates, or underemployed Canadians. Temporary pathways like the International Mobility Program (IMP) could offer employers alternative ways to bring in skilled workers without the need for an LMIA.

3. Plan Ahead for LMIA Reapplication Since LMIA approvals are now valid for just one year, employers need to be proactive in planning their workforce needs. Start the reapplication process early to avoid potential gaps in staffing. Consider maintaining an open line of communication with immigration consultants and specialists to stay informed about any additional changes that may impact your business.

4. Advocate for Sector-Specific Solutions If your business operates in a sector facing significant labor shortages, it may be worth joining industry associations that advocate for more flexible immigration policies for your sector. In certain cases, collective lobbying can result in government exemptions or special considerations for specific industries.

Challenges for Foreign Workers

For foreign workers, the new policies can create additional uncertainty. Many workers may fear losing their jobs or facing difficulties renewing their work permits, particularly in sectors not covered by the new exemptions.

1. Uncertainty in Job Security Foreign workers in non-exempt sectors (like retail, agriculture, or hospitality) may feel uncertain about their job security due to the new cap and RTP policy. With fewer LMIAs being approved and shorter approval periods, many workers are concerned about maintaining their work status in Canada.

2. Limited Employment Options in Certain Regions With the RTP policy preventing LMIAs from being processed in high-unemployment regions, foreign workers may find it more challenging to secure jobs in those areas. Similarly, the temporary freeze in Montreal makes it harder for foreign workers to find low-wage jobs in the region.

Strategies for Foreign Workers

Despite these challenges, foreign workers can take proactive steps to improve their chances of staying employed and transitioning to long-term status in Canada:

1. Seek Employment in Exempt Sectors Foreign workers in healthcare, construction, and food processing have a better chance of obtaining or renewing an LMIA under the new rules. Those currently employed in non-exempt sectors should consider transitioning into these high-demand fields, where labor shortages are driving the need for foreign workers.

2. Explore Pathways to Permanent Residency Temporary foreign workers who want to remain in Canada should explore their options for permanent residency. Programs like the Canadian Experience Class (CEC), Provincial Nominee Program (PNP), or the Atlantic Immigration Program (AIP) may offer a path to permanent residency, allowing workers to stay in Canada without relying on LMIA renewals.

• Healthcare Workers: The Canadian Experience Class (CEC) under Express Entry is ideal for healthcare professionals who already have Canadian work experience. Many provinces also offer healthcare-specific streams through the Provincial Nominee Program (PNP), allowing healthcare workers to fast-track their permanent residency.

• Construction Workers: Construction professionals may qualify under programs like the Federal Skilled TradesProgram (FSTP), which targets skilled tradespeople for permanent residency. Some provinces also have construction-specific PNP streams to attract skilled labor for long-term residency.

• Food Processing Workers: Workers in the food processing sector may find pathways to permanent residency through various PNP streams, particularly those in rural or agricultural regions, where there is a higher demand for labor. Programs like the Atlantic Immigration Program (AIP) also provide options for food processing workers to settle permanently in Canada.

3. Stay Informed Foreign workers should stay updated on any changes to the TFWP or LMIA policies. Consulting with immigration experts or legal professionals can help workers understand their options and any new opportunities that may arise as policies evolve.

At Altec Global, we are dedicated to helping individuals achieve their Canadian immigration dreams, no matter how challenging the circumstances may seem. If you need immigration assistance, we encourage you to contact our team for a personalized assessment.