Raised wages for the high-wage TFWP

The Temporary Foreign Worker (TFW) Program permits Canadian employers to hire foreign workers for temporary jobs when there are no qualified Canadians available.

Effective November 8, candidates applying through the high-wage stream of the TFWP must earn hourly wages at least 20% above the median for their position in their work area to be eligible.

Under the TFWP, ESDC considers only guaranteed wages for eligibility. This means the required wage does not include: * Overtime wages, * Tips, * Benefits, * Profit Sharing, * Bonuses, * Commissions, * Other forms of compensation.

ESDC expects that the announcement will result in more jobs falling under the stricter rules of the low-wage stream of the TFWP. Under these rules, employers are required to provide increased support to workers in areas such as housing and transportation. The department hopes this will encourage more hiring of Canadian workers for the same positions.

These changes consist of:

These measures are part of reforms to Canada’s Temporary Foreign Worker Program (TFWP), particularly affecting the low-wage stream. Here’s a breakdown of each:

1. Six-month pause on LMIA processing in metropolitan areas with 6%+ unemployment: The Labour Market Impact Assessment (LMIA) is a document required for employers to hire temporary foreign workers (TFWs). The pause means that for six months, employers in cities with higher unemployment rates (6% or above) cannot apply for LMIAs to bring in workers under the low-wage stream. The intent is to prioritize hiring local workers when unemployment is high.
2. 10% cap on hiring TFWs: Employers using the TFWP’s low-wage stream can now hire only up to 10% of their workforce through the program. This is a significant reduction for businesses that relied heavily on TFWs, aiming to ensure more jobs for Canadian residents.
3. Reducing employment duration for low-wage TFWs: The maximum duration for which a TFW in the low-wage stream can be hired has been shortened from two years to one year. This change reduces the time foreign workers can stay in low-wage positions, again encouraging employers to look to the domestic labor market when possible.

These changes come as Canada aims to limit the number of temporary residents (those on work or study permits) to 5% of the total population, addressing growing concerns about housing availability and overall affordability in the country.