Canada Work Permit LMIA Updates for 2024

Canada came up with some significant updates to its Temporary Foreign Worker Program (TFWP). Certain changes will help employers hire foreign workers will adopt certain changes to get through a work permit but for this purpose, they need a positive Labour Market Impact Assessment (LMIA).

Why are the Changes?

These changes in Canada are due to two following major reasons: 

  • Fewer job vacancies
  • A rising unemployment rate. 

In March 2024, the unemployment rate was 6.1% which was 5.8% in the previous month, we can see a rise. The government updated the Temporary Foreign Worker Program (TFWP) to ensure employers use it only when no Canadians are available for the job.

Changes Effective from May 1, 2024

Work Permit LMIA Validity Period:

  • New LMIAs will be valid for 6 months instead of 12 months.
  • Employers have 6 months to hire a foreign worker and apply for their work permit.

Workforce Percentage for Low Wage Stream:

  • Most industries must reduce the percentage of their workforce under the low wage stream from 30% to 20%.
  • This percentage does not apply to the construction and healthcare industries.

Hiring Asylum Seekers:

  • Employers must now also consider hiring asylum seekers. However, they must obtain valid work permits.
  • Previously, they only had to try to hire Canadian citizens or permanent residents.

Affected Industries by Workforce Solutions Road Map 2022

The following seven industries are covered:

  1. Food Manufacturing (NAICS 311)
  2. Wood Product Manufacturing (NAICS 321)
  3. Furniture and Related Product Manufacturing (NAICS 337)
  4. Accommodation and Food Services (NAICS 72)
  5. Construction (NAICS 23)
  6. Nursing and Residential Care Facilities (NAICS 623)
  7. Hospitals (NAICS 622)

Employer Salary Assessments for Temporary Foreign Workers

Employers must check and update the pay for temporary foreign workers every year starting January 1, 2024. This ensures fair pay according to current rates for their job and location.

What is the Temporary Foreign Worker Program (TFWP)?

The TFWP allows Canadian employers to hire foreign workers to fill the incapability of Canadian jobs.

Current Job Openings in Canada

In January 2024, there were 632,100 job vacancies in Canada. We can notice a drop from the record high of 983,600 job vacancies in the second quarter of 2022.

Summary Table of Changes

Change Details
LMIA Validity Valid for 6 months (previously 12 months)
Low Wage Stream Workforce Reduced from 30% to 20% (except for construction and healthcare)
Hiring Asylum Seekers Employers must consider asylum seekers with valid work permits
Annual Salary Assessment Employers must check and update temporary foreign worker pay annually

 

These changes help ensure the TFWP is used correctly and that Canadians have the first chance at available jobs. Employers must adapt to these new rules to hire foreign workers without any inconvenience. If you help with Canada’s updated work permit, contact Asif Consulting for expert guidance and smooth processing.

For Expert Consultancy !