Question Period Note: THE TEMPORARY FOREIGN WORKER (TFW) PROGRAM INCREASED VOLUMES

The volume of temporary foreign workers coming to work in Canada increased dramatically in response to historic labour shortages, raising concerns about Canadians’ access to jobs.

The Government of Canada remains committed to prioritizing jobs for Canadians, while ensuring the TFW Program is aligned with Canada’s economic and labour market needs.

In April 2022, the Government of Canada introduced new measures to the TFW Program.

These measures support employers who struggle to find workers in the wake of the post-pandemic economic recovery.

Labour shortages and the introduction of new measures resulted in higher volumes of LMIA applications, approved positions, and the overall LMIA approval rate.

If Pressed (Labour Shortages)

Canada’s economic recovery from the COVID-19 pandemic outpaced employers’ ability to hire workers.

By mid-2022, Canada’s job vacancy rate—which represents the number of unfilled positions—was at an all-time high.

This led to an increase in the volume of LMIA applications, which rose from 69,079 in 2021-22 to 113,718 in 2022-23.

While TFW Program volumes have increased substantially, the Program remains a comparably small source of temporary labour.

For example, of the 929,000 temporary work permits approved in 2022, only 135,685 were issued to temporary foreign workers.

The TFW Program is one of two Government of Canada avenues for hiring temporary foreign labour, along with the International Mobility Program.

Unlike the International Mobility Program, the TFW Program requires prospective employers to submit a Labour Market Impact Assessment (LMIA) to the government. An LMIA is an information package that evaluates whether there is valid justification for the employer to hire a temporary foreign worker over a Canadian or permanent resident.

The LMIA is designed to protect Canadian jobs and wages, while ensuring that businesses are genuine and adhere to required program safety standards. Employers who apply to use the TFW Program must demonstrate that they can provide safe working and living conditions for temporary foreign workers.

The LMIA assesses an employer’s need to hire a temporary foreign worker, and imposes specific requirements, including an obligation to advertise available jobs to Canadians for a set period of time before seeking foreign labour.

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