Here's what you need to know
Canada is making changes to its Temporary Foreign Worker (TFW) Program, including raising the starting wage for workers in the high-wage stream and imposing stricter rules on employers.
Effective November 8, the government will increase the starting hourly wage for workers in the high-wage stream by 20%, moving the threshold well above the current median wage for each province or territory.
This wage increase, which will boost the hourly rate by between $5 and $8 depending on the region, aims to encourage employers to prioritize hiring Canadians before seeking temporary foreign workers.
By shifting more jobs into the low-wage stream, where stricter employer requirements apply, the government said it hopes to ensure domestic talent, particularly from underrepresented groups such as youth, Indigenous persons, women, and people with disabilities, are given better access to job opportunities.
"This change to the Temporary Foreign Worker Program reinforces our commitment to protecting temporary foreign workers, while prioritizing the Canadian workers available to join the labour force,” Employment Minister Randy Boissonnault said in a statement. “By raising the threshold for high-wage stream positions, we are supporting wage growth for Canadians."
The reforms also include the removal of a key verification tool. As of October 28, employers will no longer be able to use attestations from accountants or lawyers to prove business legitimacy when applying to hire foreign workers.
Instead, the government will enhance information-sharing with provincial and territorial partners to improve the integrity of the program and prevent misuse.
The Temporary Foreign Worker Program has two streams: the low-wage stream, for jobs below the median wage, and the high-wage stream, for positions that pay above it. The changes are expected to move approximately 34,000 positions from the high-wage to the low-wage stream, subjecting them to stricter regulations, including requirements for housing and transportation for workers.
Employers in the low-wage stream will face additional responsibilities, such as providing transportation and accommodation for workers and conducting more extensive recruitment within Canada.
The government estimated that as many as 20,000 fewer positions will be approved through the TFW Program.
Read more: Support for immigration in Canada plummets
The changes build on Canada’s recent policies aimed at protecting its labour market. The government has limited the use of temporary foreign workers in regions with higher unemployment rates and set a cap on the percentage of foreign workers that employers can hire.
For example, in regions where the unemployment rate is above 6%, no new low-wage LMIA applications will be processed.
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