Canada’s Temporary Foreign Worker Program (TFWP) has been a crucial pathway for employers to fill critical labor shortages when local talent is unavailable. Recently, the federal government announced a significant review of the High Wage Stream of the program, signaling potential changes to its policies. This review could alter how work permits are issued, to ensure that the program serves genuine labor market needs.
The Review of the High Wage Stream of TFWP
The High Wage Stream of the Temporary Foreign Worker Program allows employers to hire international workers at wages that are equal to or above the median wage for a particular job in Canada. This stream has been a key component of addressing shortages in specialized and high-skill sectors. However, Canada’s labor market has been evolving, with more emphasis being placed on hiring local workers.
The federal government, as part of its ongoing efforts to balance local employment opportunities with international labor needs, has initiated a 90-day review of the High Wage Stream. This review may result in:
Stricter conditions for employers to access work permits.
Adjustments to existing Labour Market Impact Assessments (LMIAs) for unfilled positions.
Potential refusal of LMIA applications, especially in rural or sector-specific jobs.
The objective is clear: prioritize Canadian workers while ensuring the Temporary Foreign Worker Program remains a safety net for genuine shortages. These changes aim to ensure that the Temporary Foreign Worker Program is being used appropriately while safeguarding jobs for Canadians.
| Potential Changes in the High Wage Stream | Impact on Employers |
| Stricter LMIA requirements | Longer processing times, need for greater proof of local labor shortage |
| Sector-specific changes | Exceptions for high-demand sectors (e.g., healthcare, tech) |
| Rural area LMIA modifications | Possible refusal of applications for some jobs in rural locations |
Impact on Employers and Temporary Foreign Workers
For employers who depend on the High Wage Stream, this review could bring a mix of challenges and opportunities. Those in sectors like construction, manufacturing, or engineering may have to rethink their recruitment strategies if they face difficulties in obtaining LMIAs for foreign workers. Employers must now make even more robust efforts to hire Canadians before looking abroad.
Meanwhile, temporary foreign workers might also face delays or uncertainty in their application process. Those hoping to work in rural areas or lower-demand sectors may find fewer opportunities available.
Despite these potential obstacles, high-demand sectors like healthcare and tech may still benefit from more flexible rules, allowing employers to bring in foreign talent where it’s genuinely needed.
This review of the High Wage Stream follows similar reforms to the Low Wage Stream of the Temporary Foreign Worker Program. As of September 26, 2024, new limits were imposed on the Low Wage Stream:
A 10% employer cap for most sectors, except for healthcare, construction, and food processing, which have a 20% cap.
LMIAs approved under the Low Wage Stream will now allow foreign workers to stay for just one year, excluding Primary Agriculture Stream jobs.
Low-wage LMIAs will no longer be processed in regions with an unemployment rate over 6%, again with exceptions for essential sectors like healthcare.
The Political and Economic Context Behind the Changes
Public opinion is shifting as Canada deals with rising unemployment and growing concerns about immigration levels. Many Canadians feel that foreign workers should only be brought in when absolutely necessary, which has led to increasing political pressure on the federal government.
With an election on the horizon in 2025, the government is keen to demonstrate that it can manage immigration responsibly. The review of the High Wage Stream is one of many actions being taken to show that the system is controlled and prioritizes Canadian workers.
The ongoing review of the Temporary Foreign Worker Program highlights the government’s dedication to ensuring that the program serves both employers and Canadian workers fairly. While the outcome of the review is still pending, it’s clear that changes are coming that could reshape the High Wage Stream.
For employers, this is the time to prepare. Employers should focus on enhancing their recruitment processes to tap into local talent pools while keeping an eye on upcoming changes. Temporary foreign workers, on the other hand, must stay updated on how these shifts could impact their ability to work in Canada.
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