Canada has rolled out stricter regulations under its Temporary Foreign Worker Program (TFWP); employers now have to pay higher wages and can hire fewer foreign workers.
These changes have created worry and fear of deportation among skilled foreign workers.
Canada is changing its immigration and labour policies by tightening the rules in the Temporary Foreign Worker Program (TFWP).
The new regulations compel employers to raise wages and limit the number of foreign workers they can hire, and this has left many skilled workers unsure about their job security and worried about being deported.
These changes are also shaking up Canada’s labour market and raising questions about the future of foreign workers coming to the country for jobs.
What the new rules say
In late 2024, the Canadian government introduced stricter regulations aimed at reducing reliance on foreign workers and prioritizing Canadian labour by raising wage requirements and limiting the number of foreign hires.
High-Wage Jobs: From November 8, 2024, employers must pay workers at least 20% more than the regional median wage. This raise, between $5 and $8 per hour, is meant to encourage companies to hire Canadians instead of temporary foreign workers.
Low-Wage Jobs: From September 26, 2024, companies can only hire foreign workers for up to 10% of their workforce in low-wage positions. This forces employers to rely more on local workers and cuts down on affordable foreign labour.
About 34,000 jobs are expected to move from the high-wage group to the more restricted low-wage group, where foreign workers get fewer benefits and less job security.
Program purpose and new compliance challenges
The Temporary Foreign Worker Program helps Canadian employers fill jobs temporarily when they cannot find qualified Canadians. It covers sectors like agriculture, hospitality, construction, and healthcare. But the new Labour Market Impact Assessment (LMIA) rules are making companies rethink how they hire.
Many Canadian businesses warn that higher wages and limits on foreign workers could cause labour shortages and make them lose skilled employees.
They are asking the government to reconsider these rules because of the financial pressure and possible business disruptions.
Implications for Canada’s reputation and skilled migrants
While the government wants to protect Canadian jobs, these new rules could hurt Canada’s image as a welcoming place for skilled workers.
Potential applicants might choose other countries with simpler immigration policies because of fears about deportations as work permits expire.
The Canadian government now faces the challenge of protecting Canadian jobs while keeping a steady supply of foreign workers needed in many industries.
The next few months will show how these changes affect Canada’s labour market and immigration system.
