A Look Back at the Key Updates to Canada’s Temporary Foreign Worker Program (TFWP) in 2024
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In 2024, Canada’s Temporary Foreign Worker Program (TFWP) underwent significant changes that are shaping the future of immigration and labor markets. These adjustments aim to address key workforce shortages while balancing the needs of both employers and foreign workers. Let’s dive into the most impactful changes that have transformed the program this year.
Summary of Major Changes to Canada's Temporary Foreign Worker Program (TFWP) in 2024
Let’s take a look at the key changes to the TFWP program in 2024.
| Change | Summary | When it was implemented |
|---|---|---|
| Reduction in LMIA validity | The LMIA validity period has been shortened to six months, down from the previous 12 months | May 1, 2024 |
| Visitors can no longer apply for work permits from within Canada | Foreign nationals holding visitor temporary resident status are no longer permitted to apply for work permits supported by job offers from within Canada | August 28, 2024 |
| Suspension of processing of low-wage LMIAs | LMIAs for the low-wage stream will no longer be processed in CMAs where the unemployment rate is 6% or above | September 26, 2024 |
| Reduction of duration of employment for low-wage stream | The maximum employment duration for workers hired through the low-wage stream has been cut to one year, down from the previous two years | September 26, 2024 |
| Lowering of workforce caps for low-wage stream | The federal government lowered the percentage of low-wage workers that Canadian businesses can hire through the TFWP | September 26, 2024 |
| Attestations no longer accepted | Employers are no longer allowed to use attestations from specific parties as evidence of providing goods or services. They will now be required to show other documents | October 28, 2024 |
| Annual targets established for TFWP work permits | A goal of issuing 82,000 new net TFWP work permits is set for 2025 | |
| Higher Wage Requirements for the High-Wage Stream | Employment and Social Development Canada (ESDC) increased the minimum hourly wage threshold for the high-wage stream of the TFWP | November 8, 2024 |
1. Reduction in LMIA validity
In response to the labor market challenges during the pandemic, the government temporarily extended the LMIA validity period to 12 months. However, starting May 1, 2024, the validity period has been reduced back to six months. This change was announced on March 21 by Immigration Minister Marc Miller and Employment Minister Randy Boissonnault.
Employers in the Recognized Employer Pilot program will not be affected by this reduction and remain exempt from the new rule.
2. Visitors can no longer apply for work permits from within Canada
The IRCC ended the temporary public policy on August 28 that permitted certain visitors to apply for work permits from within Canada.
Initially introduced in August 2020 as a pandemic measure, the policy was set to expire on February 28, 2025. With its conclusion, many visitors had to leave Canada before applying for job-offer supported work permits, including those issued under the TFWP.
3. Suspension of processing of low-wage LMIAs
On August 26, the Canadian government announced changes to the LMIA process for low-wage streams in CMAs with higher unemployment rates. As of September 26, 2024, LMIAs for the Low-Wage stream will no longer be processed in census metropolitan areas (CMAs) with unemployment rates of 6% or higher.
However, exceptions are made for seasonal and non-seasonal jobs in the critical sectors including:
- Primary Agricultural
- Food Processing
- Fish Processing
- Construction
- Healthcare
Quebec also suspended LMIA processing for low-wage roles in Montreal starting September 3, 2024, lasting until March 3, 2025. This suspension also applies to jobs offering wages below the province's median hourly rate of CAD 27.47, excluding essential industries like agriculture, construction, education, and health and social services.
Also Read: Canada’s Federal Pilot Programs Offer New PR Pathways for Quebec Temporary Residents
4. Reduction of duration of employment for low-wage stream
In August, it was announced that the maximum employment duration for workers under the low-wage stream would be cut from two years to one year. This adjustment officially took effect on September 26, 2024.
5. Lowering of workforce caps for low-wage stream
Over the years, the cap on the number of low-wage workers Canadian businesses can hire through the Temporary Foreign Worker Program (TFWP) has seen several adjustments. In 2024, significant policy changes were introduced to balance labor market needs and protect domestic employment. In 2022, the cap was temporarily increased to 30% for specific sectors.
- May 1, 2024: The cap on low-wage workers reverted to 20%, with only the construction and healthcare sectors allowed to maintain a 30% cap.
- August 26, 2024: The government announced a reduction of the cap from 20% to 10% for most employers, effective September 26, 2024.
- September 26, 2024: The cap for the construction and healthcare sectors was also lowered from 30% to 20% for low-wage positions.
6. Attestations no longer accepted
Starting October 28, employers can no longer rely on attestations from certain professionals as evidence of providing a good or service.
- Attestations from lawyers or members in good standing with a law society are no longer acceptable.
- Chartered Professional Accountants (CPAs) can no longer provide attestations to confirm business activities.
- Officials from financial institutions are also not allowed to certify the provision of goods or services.
7. Annual targets established for TFWP work permits
For the first time, Canada’s Immigration Levels Plan, announced on October 24, has introduced specific targets for temporary resident admissions for the next three years. This strategic move reflects the government's efforts to better manage temporary immigration and balance labor market demands with sustainable population growth.
| Temporary Resident Category | 2,025 | 2,026 | 2027 |
|---|---|---|---|
| Overall Arrivals and ranges | 673,650 (604,900–742,400) | 516,600 (435,250–597,950) | 543,600 (472,900–614,250) |
| Temporary Foreign Worker Program (TFWP) | 82,000 | 82,000 | 82,000 |
These targets align with the government’s broader objective to lower the proportion of temporary residents in Canada’s total population from 7% to 5% by the end of 2026.
Quick Read: Temporary Resident Visa to Canada From India
8. Higher wage requirements for the high-wage stream
On October 22, 2024, Employment and Social Development Canada (ESDC) updated the minimum hourly wage requirements for the high-wage stream of the Temporary Foreign Worker Program (TFWP). This change aims to ensure fair compensation and align wages with current market standards.
Effective November 8, 2024, candidates must now meet one of the following wage criteria:
- Earn at least 20% more than the median wage for their position in their specific region.
- Receive a wage that falls within the pay range of current employees in the same role, with similar skills and experience, working at the same location.
Previously, candidates only needed to earn the median wage for their position in their region, as listed on Canada’s National Job Bank, or a wage within the range of what current employees at the same employer earned.
Looking to Work in Canada? Let GetGIS Help You Navigate the TFWP
The changes to Canada’s Temporary Foreign Worker Program (TFWP) in 2024, including the reduced LMIA validity period and increased wage requirements for the high-wage stream, aim to better protect workers and address labor market needs. These updates ensure fair compensation and stricter hiring standards for employers. As the program evolves, it continues to balance workforce demands with stronger worker protections.
Planning to kickstart your career in Canada? Let GetGIS guide you through every step of the way. From visa applications to job search support and more, our experts ensure a smooth and successful transition to life in Canada.
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