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

The volume of temporary foreign workers in Canada increased in response to historic labour shortages post the COVID-19 pandemic, raising concerns about Canadians’ and permanent resident access to jobs, housing, and social services.

• The Government of Canada is committed to prioritizing jobs for Canadians by working to ensure the TFW Program is aligned with Canada’s economic and labour market realities.
• In March 2024, the Government announced its intention to reduce the number of temporary residents in Canada over the next three years.
• In support of this objective, the Government has moved forward with a series of tightening measures to help reduce employer reliance on temporary foreign workers and to better address TFW Program misuse and fraud.
• The Government continues to closely monitor labour market conditions and will consider further adjustments to help ensure that only employers with genuine labour market needs have access to the TFW Program.

The Government of Canada has two temporary work entry programs: the Temporary Foreign Worker (TFW) Program and the International Mobility Program (IMP). Unlike the IMP, the TFW Program requires prospective employers to submit a Labour Market Impact Assessment (LMIA) to the Government.
An LMIA evaluates whether there is valid justification for the employer to hire a temporary foreign worker and imposes specific requirements. Employers are required to demonstrate that they have made efforts to recruit Canadians and permanent residents before applying. This includes a requirement to advertise on Job Bank or its provincial counterpart and the recruitment of at least two underrepresented groups (e.g., Indigenous persons, vulnerable youth, newcomers, persons with disabilities, and asylum seekers with a valid work permit).
The LMIA is an important tool that not only serves to protect the Canadian labour market, but also acts as the first safeguard for worker protections. It reinforces program requirements related to wages and working conditions, employment standards, and employer obligations.

If Pressed (Increased TFW Program Volumes)
• Canada’s economic recovery from the COVID-19 pandemic outpaced employers’ ability to hire workers.
• In response, the Government introduced the Workforce Solutions Road Map to help employers fill labour shortages and keep their doors open.
• As Canada’s economy recovered, our labour markets loosened and, starting in early 2024, the Government began rolling back TFW Program measures to better reflect labour market realities.
• The changes include tightening measures specific to the Low-Wage Stream (with certain exceptions to the food security, construction, and healthcare sectors), including refusing to process LMIAs in regions where the unemployment rate exceeds 6%.
• Moreover, Employers will be allowed to hire no more than 10% of their total workforce through the TFW Program.

“The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles… The changes we are making will prioritize Canadians workers and ensure Canadians can trust the Program is meeting the needs of our economy.” – Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, August 26, 2024