The federal government has decided to prolong the period during which businesses may utilize low-wage temporary foreign workers.
This modification will extend the maximum term for a low-wage Labour Market Impact Assessment — the essential document required by employers to hire temporary foreign workers — from one year to two years.
While the government has stated that the restrictions on hiring temporary foreign workers in areas with unemployment rates exceeding six percent will stay intact, Ottawa is introducing early childhood educators as an additional profession that is exempt from these limitations. The current exemptions already encompass certain roles in healthcare, construction, and food processing.
Furthermore, Ottawa is suggesting a range of new measures for low-wage Labour Market Impact Assessment applications, which are scheduled to be implemented on March 1, 2027. For these changes to be enacted, provinces and territories must agree to them.
Among the proposed measures is one that would empower provinces and territories to modify the list of occupations exempt from the six percent rule.
The federal government is also recommending that provinces and territories be allowed to increase the proportion of their workforce composed of low-wage temporary foreign workers to 15 percent, an increase from the current cap of 10 percent.
On Monday, Immigration Minister Lena Diab expressed the government’s commitment to collaborating more closely with provinces and territories to tailor the temporary worker program to meet regional demands.
“I have consistently heard from many individuals across the nation, regardless of their background, that there is a necessity for this program,” Diab stated during a news conference in Stellarton, N.S.
Some Canadian companies are now scrambling to fill jobs and meet orders as work permits expire, two years after the federal government drastically cut back the temporary foreign worker program. [NOTE: This video has been edited to replace an image of a hotel that was mistakenly included in this story.]
Diab noted that while the percentage of temporary workers in the workforce may increase in certain sectors, the government emphasizes that all positions should be prioritized for Canadians first.
“However, we acknowledge that there is also a requirement for skilled trades and individuals with different competencies than those available in Canada, as well as regions in the country where Canadians are not applying,” Diab explained.
“The percentages you mentioned will be determined by the provinces and territories, who will decide if this approach is suitable for their regions and, if so, which specific areas.”
Diab was in Stellarton to unveil that the Rural Community Immigration Pilot is being transitioned into a permanent government initiative along with a pathway to permanent residency.
This program involved over 1,950 approved employers in 14 rural communities facing labor shortages who were unable to fill positions exclusively with local talent. The government assisted these employers in connecting with skilled foreign workers, facilitating their journey towards permanent residency.
Approximately 5,500 permanent residency opportunities are allocated to this initiative in the latest immigration levels plan, and the government aims to expand the program to additional communities in the future.
The government hinted at reforms to the temporary foreign worker program in the budget presented on Thursday. Officials who briefed reporters provided limited details about the intended reforms, which were later disclosed the following day.
Conservative Leader Pierre Poilievre stated on Friday that the temporary foreign worker program should not be an option in areas where the unemployment rate exceeds 5.5 percent.
According to Statistics Canada, the national unemployment rate stood at 6.7 percent in October. Over the past two years, this rate has fluctuated month to month, hovering between approximately 6.5 percent and 7 percent.
