published on 27 August 2024 @ 3:38 pm · COMMENT

Restrictions on Processing of Low Wage LMIAs Starting September 26, 2024

As a result of shifting labour market conditions, the Federal Government has announced that several adjustments will be made to the Low-Wage stream of the Temporary Foreign Worker Program in the next month. Starting on September 26, 2024, Service Canada will no longer be processing Labour Market Impact Assessment (LMIA) applications under the Low-Wage stream where the unemployment rate of the location of work is 6% of higher. The cap on the proportion of foreign workers that can be hired under the Low-Wage stream will also be reduced from 20% to 10% for most industries, and the maximum employment duration for such positions will be reduced from 2 years to 1 year.

Restrictions on Low-Wage LMIAs were common prior to 2020, including specific restrictions tied to regional unemployment rates. These upcoming changes largely revert the Temporary Foreign Worker Program to its pre-pandemic status quo.

To address continuing labour market shortages in certain industries, there are numerous sector-specific exemptions to the above restrictions, applicable to the primary agriculture, food processing, healthcare, and construction industries. These changes also do not affect positions in which the wage being offered exceeds the provincial median wage, nor do they affect caregiver positions or LMIA applications under the Global Talent Stream. Additionally, employer in regions with a low unemployment rate such as Kitchener-Waterloo-Barrie, Stratford-Bruce Peninsula, and most of British Columbia will continue to be able to obtain Low-Wage LMIA applications.

The Federal Government has also stated that within the next 90 days, further review will be undertaken of the Temporary Foreign Worker Program, which could result in further changes to other LMIA streams, or to additional sectoral exceptions based on industry-specific labour market conditions.

filed under: IMMIGRATIONPERMANENT RESIDENCE