New Changes to Canada Work Permit LMIA Effective May 2024

Introduction: Understanding the Updates

We will explore a few changes in Canada’s temporary foreign worker program. The temporary foreign worker program allows Canadian employers to hire foreign workers on a Canada work permit. However, for this purpose, they need to obtain a positive LMIA, which stands for Labour Market Impact Assessment. 

LMIA is an assessment that helps to determine if hiring a foreign worker is necessary in the absence of qualified Canadians for the job.

Background: The Need for Adjustments

In response to shifting labor market conditions, there was a need for adjustments. The decline in job openings and the rise in unemployment rates are the particular reasons. All these things made the Canadian government decide to update the Temporary Foreign Worker Program.

Key Changes Effective May 1, 2024

1. LMIA Validity Reduced to Six Months: Previously, a positive LMIA was valid for twelve months. In the current situation, it will only be valid for six months. It means employers have a shorter timeframe to hire any foreign worker and apply for a work permit.

1. Reduction in Low-Wage Stream Entrants: With the exception of construction and healthcare industries, all other industries listed in the 2022 Workforce Solutions Road Map must reduce the percentage of their workforce. It must enter under the low wage stream from 30% to 20%.

1. Consideration of Asylum Seekers: Employers better explore all options before requesting an LMIA. It includes considering asylum seekers with valid work permits.

Industries in the Workforce Solutions Road Map 2022

The Workforce Solutions Road Map was introduced in 2022. It focuses on seven industries:

1. Food Manufacturing
2. Wood Product Manufacturing
3. Furniture and Related Product Manufacturing
4. Accommodation and Food Services
5. Construction
6. Hospitals
7. Nursing and Residential Care Facilities

Annual Salary Assessment for Temporary Foreign Workers

Starting January 1, 2024, employers are required to annually assess the pay of temporary foreign workers. It will ensure that it reflects changes in industry standards and regional rates. This measure aims to guarantee that temporary foreign workers are paid fairly throughout their employment.

Understanding the Temporary Foreign Worker Program (TFWP)

The TFWP allows Canadian employers to hire foreign workers to fill temporary labor and skill shortages during the unavailability of qualified Canadians.

Current Job Openings in Canada

As of January 2024, there were 632,100 job vacancies across all sectors in Canada. It depicts a significant drop from the record high set in the second quarter of 2022.

These adjustments aim to deal with the needs of Canadian employers with the country’s labor market conditions. In addition, it will ensure fair opportunities for all Canadian workers and temporary foreign workers. Visit Asif Consulting for further information and LMIA offers.