Changes to work permit LMIA from May 2024

In May 2024, significant adjustments to Canada’s Temporary Foreign Worker Program (TFWP) are set to take effect, reflecting changes in the labor market and broader economic conditions. Here’s a comprehensive overview of the upcoming changes:

Key Changes to Labour Market Impact Assessments (LMIA)

1. Shortened Validity: The validity of new Labour Market Impact Assessments (LMIAs) will be reduced to six months, down from the previous period of up to 18 months during the pandemic. This change is intended to ensure that LMIAs better reflect the current labor market conditions​ (Immigration News Canada)​​ (Immigration Nation)​​ (TIAO)​​ (Canadavisa.com)​.
2. Cap on Low-Wage TFWs: Employers will now be restricted to having a maximum of 20% of their workforce comprised of Temporary Foreign Workers (TFWs) in the low-wage stream. However, exceptions are made for the construction and healthcare sectors, where the cap will remain at 30%. The cap for the agricultural sector and seasonal employers remains unchanged​ (Immigration Nation)​​ (Nationwide Visas)​.
3. Mandatory Domestic Recruitment: Employers are required to exhaust all available domestic recruitment options before applying for an LMIA. This includes considering asylum seekers in Canada with valid work permits, aiming to fill job vacancies more inclusively and locally​ (Immigration Nation)​.
4. Annual Wage Review: Starting from January 2024, employers must conduct annual reviews of wages for TFWs to ensure they align with the prevailing wage rates for their occupations and regions. This measure is meant to guarantee fair compensation throughout the employment term​ (Immigration Nation)​​ (TIAO)​.

Additional Considerations and Policy Goals

• Encouragement of Local Hiring: These adjustments also align with broader policy goals to reduce reliance on temporary foreign workers, encouraging employers to find talent within Canada first. The aim is to support Canadian workers by ensuring they are considered for positions before expanding the search internationally​ (Nationwide Visas)​​ (Canadavisa.com)​.
• Impact on Temporary Residents: The government plans to incorporate temporary residents into the annual immigration levels plan starting in fall 2024, aiming to stabilize population growth and ensure a well-managed, sustainable immigration system. This includes setting new targets for temporary residents, contributing to Canada’s labor market and economic growth​ (Nationwide Visas)​.

These changes are part of Canada’s ongoing efforts to adapt its immigration and workforce policies to the evolving economic landscape, ensuring that both Canadian and foreign workers are fairly treated and that the labor market remains robust and responsive to changes. These updates reflect a strategic shift to align the TFW Program with current economic realities, emphasizing its role as a mechanism to fill job roles only when Canadian workers are unavailable​ (Immigration Nation)​.

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