Yesterday's announcement by ESDC will bring massive changes not just for temporary residents but also on how you qualify for PR
Yesterday, Minister of Employment and Social Development Canada, Randy Boissonnault announced some major overhaul to the Temporary Foreign Worker Program (TFWP). Below are what to expect effective September 26, 2024:
- The Government of Canada will refuse to process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream, applicable in census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare;
- Employers will be allowed to hire no more than 10% of their total workforce through the TFW Program. This maximum employment percentage will be applied to the Low-Wage stream and is a further reduction from the March 2024 reduction. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as healthcare and construction; and
- The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year (from two years).
So, how will this affect your chances to become Permanent Resident? Well, if you are applying for Express Entry, for example, and you need that extra point for having an LMIA and arranged employment, you may or may not be able to renew or extend your work permit if your work location is within the region with 6% unemployment rate and does not belong to the exempted occupations/industries. Right now, the best option for your employer is to hire you under a high wage occupation.
But what is a Low-Wage/High-Wage? Well, it has nothing to do with your skills. As the name exactly entails, it has to do with the hourly rate you are offered. Right now, in Alberta, to be considered High-Wage, you should be offered at least $29.50 an hour. The question is, would your employer be willing to give you that rate? Also, keep in mind that ESDC is also considering some changes to High-Wage stream. So, be very cautious in considering this stream.
Another thing that can be burdensome to your employer is that, if you are hired under thw Low-Wage stream, it will only just be limited to 1 year. This process can be costly to the employer.
According to the minister quoted below:
"The Government of Canada will continue to monitor labour market conditions and introduce further adjustments to the Program as needed in the coming months to ensure that only employers with demonstrable labour market needs have access to the Program. Within the next 90 days, further review will be undertaken of the Program, which could result in changes to the High-Wage Stream, to existing LMIA applications for which positions have not been filled, to sectoral exceptions, or refusing to process other LMIA applications, including for rural areas."
Therefore, you can expect further changes to the program. We already heard about IRCC's plan to tie Post-Graudation Work Permit to labour market needs. With unemployment rate in the entire country so high, this is not impossible.
So, if you think you qualify now for a Permanent Residence, NOW is the time to take action. According to the Prime Minister on Monday, August 26, 2024, there will also be significant changes to Permanent Residency intake.
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