Some relaxations in the process of issuing work permits in Canada.
Food service industries may employ up to 30% foreign workers, and further changes are coming soon regarding temporary foreign labor.
Canada has introduced measures to make it easier for employers to access foreign workers.
These changes, announced on April 4th, are aimed at addressing the nationwide labor shortage. Canada currently has a low unemployment rate and a high rate of job openings.
One solution to address the labor shortage is to bring in temporary foreign workers to fill job positions where there are no Canadians available. Changes to the Temporary Foreign Worker Program (TFWP) are intended to help Canada build its workforce, according to a government press release.
There are five major upcoming changes to TFWP, effective immediately:
- Labour Market Impact Assessments (LMIAs) will now be valid for 18 months, up from nine months. LMIAs are documents that demonstrate to the Canadian government that a foreign worker working in Canada will not have a negative impact on the labour market. Prior to the pandemic, LMIAs were only valid for six months.
- Additionally, the maximum work term for high-paying workers and those in the Global Talent program will be extended from two years to three years. This extension will provide eligible workers with an additional pathway to permanent residency, enabling them to contribute to the Canadian workforce in the long term.
- In addition to these changes, the removal of the maximum limit on the number of seasonal workers, which has been in place since 2015, will become permanent. There will no longer be a limit on the number of low-wage positions that employers in seasonal industries can fill through TFWP. The maximum duration of these positions will be increased from 180 days to 270 days per year.
The changes take effect on April 30th:
- Employers in sectors with clear labor shortages will be permitted to hire up to 30% of their workforce through the TFWP for low-wage positions for one year. Seven eligible sectors include: food production, wood product manufacturing, furniture and related products manufacturing, accommodation and catering services, construction, hospitals, nursing homes, and residential care. All other employers will be permitted to hire up to 20% of their workforce through the TFW for low-wage positions until further notice, up from the previous 10% limit for many employers.
- Ultimately, Canada will end its current policy of automatically denying LMIA applications for low-wage occupations in the accommodation and food service and retail trade sectors in areas with unemployment rates of 6% or higher.
Canada's labor market was even more strained than before the pandemic. The underemployment rate reached an all-time high in the third quarter of 2021. Much of the unmet labor demand was in low-wage occupations. In November 2021, the following sectors had the highest number of job openings, according to Statistics Canada.
- Accommodation and Food Services – 130,070 seats
- Health Care and Social Assistance – 119,590 seats
- Retail Trade – 103,990 seats
- Manufacturing – 81,775 seats
Last year, the Temporary Overseas Worker Program approved approximately 5,000 positions under the Global Talent Stream and 23,000 positions under the High-Paying Stream. Together, these programs represent approximately 21% of the total LMIA positions approved for 2021.
Approximately 50,000 to 60,000 foreign agricultural workers come to Canada each year, accounting for over 60% of the total number of foreign workers entering Canada under the TFWP.