To solve labour shortages, Canada softens the rules for the temporary foreign worker programme.
Canada has taken steps to make it easier for Canadian firms to hire foreign workers on a temporary basis.
These actions, which were announced on April 4, are in reaction to a nationwide labour shortage. At the same time, Canada has a low unemployment rate and many job openings.
Bringing in temporary foreign workers to fill occupations where there are no Canadians available is one way to overcome labour shortages. According to a government press release, the modifications to the Temporary Foreign Worker Program (TFWP) are intended to assist Canada develop its workforce.
The TFWP will undergo five major upgrades in the near future. Starting right now:
LMIAs (Labor Market Impact Assessments) will now be valid for 18 months, up from nine months previously. LMIAs are documentation that show the Canadian government that hiring a foreign worker will not have a negative impact on the labour market. LMIAs were only good for six months before the outbreak.
In addition, the maximum length of employment for High-Wage and Global Talent Stream employees will be increased from two to three years. Workers will be able to qualify for new pathways to permanent residency as a result of this extension, allowing them to contribute to the Canadian workforce in the long term.
In addition, the Seasonal Cap Exemption, which has been in effect since 2015, will be made permanent. Employers in seasonal industries will be able to fill an unlimited number of low-wage posts under the TFWP. These positions will have a maximum tenure of 270 days per year, up from 180 days currently.
Employers in industries with demonstrable labour shortages will be able to use the TFWP to hire up to 30% of their workers for low-wage positions for a year. Food manufacturing, wood product manufacture, furniture and related product manufacturing, accommodation and food services, construction, hospitals, and nursing and residential care facilities are among the seven industries that are qualified. Until further notice, all other companies will be able to hire up to 20% of their workforce under the TFW Program for low-wage occupations, an increase from the previous 10% cap for many employers.
Finally, Canada will remove the present policy of automatically rejecting LMIA applications for low-wage occupations in the hospitality and food services and retail trade sectors in regions with a 6 percent unemployment rate or higher.
The labour market in Canada is even tighter than it was before the outbreak. In the third quarter of 2021, the employment vacancy rate reached an all-time high. Low-wage occupations account for a large portion of the unmet labour demand.