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Canadian Government retools its TFW program to augment increasing demand for workforce.

April 6, 2022BY Meghana

Canada added 337,000 jobs in July, bringing our unemployment rate to 5.5% - the lowest since the start of the pandemic.

 To support Canada’s continued economic growth, the Government of Canada is focused on building a strong, resilient workforce in all sectors. This initiative marks the next step in an ongoing effort to adjust and improve the TFW Program to meet the labor market needs of today.

That is why today, the Minister of Employment, Workforce Development, and Disability Inclusion, Carla Qualtrough, announced the Temporary Foreign Worker (TFW) Program Workforce Solutions Road Map.

Five key policy changes will be implemented in the coming weeks as part of the TFW Program Workforce Solutions Road Map to respond to current labor and skills shortages. 

Effective immediately:

To address seasonal peaks, there will no longer be a limit to the number of low-wage positions that employers in seasonal industries, such as fish and seafood processing, can fill through the TFW Program. This makes permanent the Seasonal Cap Exemption that has been in place since 2015.  In addition, the maximum duration of these positions will be increased from 180 days to 270 days per year.

Labour Market Impact Assessments (LMIAs) will be valid for 18 months, an increase from 9 months. (Prior to COVID-19, LMIA’s were valid for 6 months).

The maximum duration of employment for High-Wage and Global Talent Streams workers will be extended from two years to three years. This extension will help workers access pathways to qualify for permanent residency, enabling them to contribute to our workforce for the long term.

For seven sectors with demonstrated labor shortages, such as Accommodation and Food Services, employers will be allowed to hire up to 30% of their workforce through the TFW Program for low-wage positions for one year.  All other employers will be allowed to hire up to 20% of their workforce through the TFW Program for low-wage.

The Government will end the current policy that automatically refuses LMIA applications for low-wage occupations in the Accommodation and Food Services and Retail Trade sectors in regions with an unemployment rate of 6% or higher.