Canada’s labour market is undergoing significant changes as the federal government introduces crucial modifications to the Temporary Foreign Worker (TFW) program. These changes, effective from September 26, 2024, aim to address ongoing labour shortages while ensuring fair treatment and protection for workers. For both employers and workers, understanding these adjustments is vital as they will significantly impact hiring practices and the overall labour market landscape in Canada.
The government’s new measures will halt the processing of employer requests for temporary foreign workers in urban areas where unemployment rates are six percent or higher. This move is intended to prioritize the employment of Canadian workers in regions with higher unemployment rates, while still allowing for certain exemptions in sectors experiencing acute shortages.
Additionally, the government is reinstating the pre-pandemic cap on the number of temporary foreign workers an employer can hire, limiting them to 10 percent of their total workforce. This change is part of a broader effort to reduce reliance on temporary foreign labour and encourage employers to invest in training and hiring Canadian workers.
Another significant change is the reduction of the tenure for employees under the low-wage stream. Previously, workers could be employed for up to two years, but this has now been reduced to a maximum of one year. This adjustment is aimed at ensuring that temporary foreign workers are truly filling temporary gaps in the labour market, rather than being used as a long-term solution to labour shortages.
The reliance on temporary foreign workers in Canada has surged dramatically in recent years. According to Employment and Social Development Canada, the number of temporary foreign workers has more than doubled from 108,988 in 2018 to approximately 240,000 in 2023. This increase has been particularly notable in sectors such as food services, hospitality, and administrative support, where approvals for roles like food counter attendants, kitchen helpers, and light-duty cleaners have seen significant growth.
Despite the essential role that temporary foreign workers play in Canada’s economy, concerns about the exploitative nature of the program persist. Workers are often tied to their employers through closed work permits, limiting their ability to change jobs and making them vulnerable to wage theft, excessive work hours, and other forms of abuse. The Standing Senate Committee on Social Affairs, Science, and Technology has recommended halting the issuance of these closed permits and replacing them with open work permits that allow greater job mobility.
Advocacy groups, including the Canadian Labour Congress, continue to push for comprehensive reforms to the TFW program. They are calling for stronger protections against exploitation, including the introduction of open work permits and the creation of pathways to permanent residency and citizenship for temporary foreign workers. These reforms are seen as essential to ending the systemic vulnerabilities that many of these workers face.
At Directpath Canada, we fully support the government’s efforts to stabilize the labour market and address the ongoing labour crisis. We recognize the importance of these changes in creating a fairer and more sustainable employment environment for both Canadian workers and temporary foreign workers.
As a leading provider of Global Recruitment, Immigration, and Settlement Services, Directpath Canada is dedicated to helping individuals navigate the complexities of the Canadian immigration system. We have placed hundreds of highly skilled workers in Canada and are committed to guiding employers and workers through these new program changes. Our team is here to provide expert advice and support every step of the way, ensuring that both employers and employees can adapt to these changes with confidence.
Information Source: Fresh Plaza
