Starting on September 26, 2024, the Canadian government will implement new restrictions on Labour Market Impact Assessments (LMIAs) for low-wage positions under the Temporary Foreign Worker Program (TFWP). These changes target Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher, ensuring that local residents are given priority for available jobs
Key Regions Affected by LMIA Restrictions
The policy focuses on regions where unemployment rates exceed the 6% threshold. Here are some of the Census Metropolitan Areas that will be impacted:
CMA | Unemployment Rate (%) |
Toronto, ON | 8.6 |
Calgary, AB | 7.6 |
Vancouver, BC | 6.2 |
Windsor, ON | 9.8 |
Abbotsford-Mission, BC | 6.7 |
Edmonton, AB | 8.5 |
These high-unemployment regions will see a reduction in the approval of low-wage LMIA applications, limiting the hiring of foreign workers and encouraging businesses to focus on local talent.
Workforce Caps and Shortened Permits
In addition to limiting LMIA approvals, the government is also introducing a 10% workforce cap on temporary foreign workers for employers in these affected regions. This is a significant reduction from the previous 20% cap. Furthermore, the maximum employment duration for low-wage foreign workers will be shortened from two years to one year.
Exemptions for Critical Sectors
Certain industries critical to Canada’s economy, such as agriculture, food processing, construction, and healthcare, are exempt from these restrictions. These sectors face labor shortages and will continue to have access to temporary foreign workers.
Why Are These Changes Happening?
Canada’s unemployment rate rose to 6.4% in mid-2024, prompting the government to reassess its use of the TFWP. The goal is to ensure that Canadians, especially in high-unemployment areas, have better access to job opportunities. By restricting LMIA approvals in regions with significant unemployment, the government aims to curb over-reliance on temporary foreign workers and prevent wage suppression.
At The Visa Tales, we stay ahead of every immigration update to guide you through the changes. Have questions or need personalized advice? Ask us in the comments below, or follow us on Instagram @the.visa.tales for updates! Don’t forget to keep checking our website for the latest news and expert guidance on Canadian immigration.
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