Canada to help employers hire more temporary foreign workers to fill shortages. Apply Now!

Canada has made a few changes to workforce solutions, which helps employers to hire more temporary workers to fill the scarcity. Many sectors are facing a shortage of workers.

Today, Randy Boissonnault, the Minister of Employment and Workforce Development, announced a few changes to the Temporary Foreign Workforce (TFWP) Solutions plan to help employers by reducing the shortage of Key labourers.

What is the Temporary Foreign Worker Program (TFWP)?

This is a program where foreign nationals can be hired by Canadian companies to work in Canada. Some employers who need to hire a foreign worker need LMAI (Labour Market Impact Assessment). This is an approval document for the Canadian government to assess whether a permanent resident of Canada or a Citizen might have been hired for the same role. LMAI will be provided within 10 business working dates. If an LMIA comes back with a positive decision, a foreign worker may be hired.

A Few changes made to the Temporary Foreign Workforce Solutions plan are:

• Employers in seven selected sectors can continue to hire up to 30% in low-salary positions through the TFWP. The seven selected sectors are Food Manufacturing, Furniture and Related Product Manufacturing, Wood Product Manufacturing, Construction, Hospitals, Accommodation and Food Services, and Nursing and Residential Care Facilities.
• Under the Territorial minimum salary program, a duration gap of employment of 2 years will be supported.
• The validity of LMIA is reduced from 18 months to 12 months.
• From January 1st, 2024, employers should complete yearly reviews of their temporary foreign worker’s salary to make sure that they are comparable to the increasing salary rates for their given employment and work location.

Canada has made many improvements in addressing significant labor shortages after the COVID-19 pandemic; many sectors, like Food Manufacturing, Furniture and Related Product Manufacturing, Wood Product Manufacturing, Construction, Hospitals, Accommodation and Food Services, and Nursing and Residential Care Facilities were facing a lack of workers. This cannot be resolved alone by country. Considering this fact, the unemployment rate in September was 5.5% which has been constant for the last 3 months. Employment demand for temporary workers has increased to 40%, which was the same even last year.

All of these changes are set to be in place till August 30th, 2024, with the provision to adjust them according to labour market and economic conditions as needed.

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