On August 26, 2024, the Government of Canada announced important changes to the Temporary Foreign Worker (TFW) Program effective September 26, 2024. Per ESDC (Employment and Social Development Canada), the objective of these changes is to encourage employers to hire more Canadian workers, including from underrepresented groups and youth, newcomers and permanent residents. Also, it aims to encourage employers to support their existing employees by investing in training and upskilling to ensure they are well-equipped to meet labour market demands.

Key Changes Effective September 26, 2024:

1. Restrictions on Low-Wage TFWs in large, urban areas and cities
• The government will stop processing Labour Market Impact Assessments (LMIAs) for
low-wage jobs in cities with an unemployment rate of 6% or higher.

2. Limit on TFWs in the Workforce:
• Employers can hire no more than 10% of their total workforce through the TFW program,
down from 20% as of March 2024.

3. Exceptions:
• Jobs in agriculture, food processing, fish processing, construction, and healthcare are exempt
from these changes, both for seasonal and non-seasonal roles.
• Low-Wage TFW program will still be available to businesses in small cities and rural
communities

4. Reduced Employment Period:
• The maximum time TFWs can work in Canada will be reduced to one year, down from the
current two years.
The changes are expected to reduce the number of low-wage TFWs by about 65,000, bringing it
back to pre-pandemic levels.

Current Unemployment Rates:
• Overall unemployment in Canada: 6.4%
• Newcomer/immigrant unemployment: 11.6%
• Youth (ages 15 to 24) unemployment: 13.5% (the highest in a decade)

Growth in the Low-Wage TFW Stream:
• Number of workers in 2016: 15,817
• Number of workers in 2023: 83,654

Over the next 90 days, the government will review the TFW Program while continuing to monitor the labour market and make additional adjustments to the TFW Program as needed to ensure it meets genuine labour market needs. This could lead to changes in the High-Wage Stream, existing LMIA applications, sectoral exceptions, further restrictions on LMIAs, including those in rural areas.