Temporary Foreign Worker Program fills labour market gaps in Canada

The Temporary Foreign Worker Program seeks to address the Canadian labour shortage.

When Canadian firms cannot locate employees with the necessary skill set among Canadians or permanent residents, they might use the Temporary Foreign Worker Program (TFWP) in Canada to get the required skills from overseas.

Why TFWP -

The purpose of TFWP is a program designed to help bridge the gaps in the Canadian labour market. The declining birth rate is not helping the situation. More Canadians are reaching the retirement age, and not enough is being added to the labour market. This gap is steadily increasing.

Shortages result when there are not enough Canadian citizens or permanent residents to fill vacant positions. An employer may file a Labour Market Impact Assessment (LMIA) to Employment and Social Development Canada (EDSC); if no one in Canada has the relevant skills to fill the post, the employer may recruit a foreign worker to come to Canada and fill the position provided the LMIA results are good or neutral.

LMIA

An LMIA gives EDSC the knowledge it needs to assess if there is an actual need to hire a foreign worker and whether doing so will positively, neutral, or adversely impact the Canadian labor market. TFWP request meets rejection if it turns out that there are Canadians or permanent residents qualified for the position and looking for work.

Requirements for Advertising

An employer must take several steps to demonstrate that they have attempted to identify and hire a candidate from within Canada before being qualified for an LMIA.

1. Advertisement for the job in question must run at least four weeks across the Canadian labor market.
2. The Canada Job Bank must post the job.
3. Employers must show that at least two extra recruitment strategies have been used, such as specialized websites, local job fairs, or local media.
4. Employers must also certify that they are aware it is against the law to fire or reduce the working hours of their current Canadian employees.

Depending on the type of job opening, there can be exceptions to these guidelines; therefore, it's essential to seek advice from a professional to ensure you're adhering to the rules of required advertising.

LMIAs with high and low wage

There are two reasons to recruit a TFW, and these two factors may affect the type of LMIA an employer must file. They must apply through the high-wage position stream for highly specialized employment that pays at least as much as the province median wage.

Employers looking to fill low-wage employment must submit applications through the low-wage position stream. This stream is used to hire temporary manufacturing, agriculture, or tourism employees. Most low-wage positions have a 20 percent cap, meaning that no more than 20 percent of the workforce can be TFWs. Depending on the industry, the cap may increase to 30%.

How to obtain a TFWP and move to Canada

After being hired by an employer, a TFW must submit their work permit application to Immigration, Refugees and Citizenship Canada (IRCC) with the LMIA number, a copy of the LMIA, a job offer letter, and a contract. Processing times for the IRCC can differ.

TFWP work permits are "closed" work permits, which means that while an employee is in Canada, they may not be able to work for another employer and will only be able to do so for the duration of their contract.

Canada introduces changes to the Temporary Foreign Worker Program

TFW Program

Canada needs you - now and in the future!

Canada has announced they are changing their Foreign Worker Program, or Temporary Foreign Worker Program (TFWP), to address its workforce shortage. The nation is experiencing a high labour demand and much lower worker supply, which has impacted its economy.

The TFW Program permits employers in Canada to recruit a foreign worker when no Canadians or permanent residents are present.

The labour market in Canada is stricter than it was before the pandemic, with the job vacancy rate reaching an all-time high in the third quarter of 2021. According to Statistics Canada, low-wage occupations contribute to much of the unmet demand, with the following industries having the most vacancies in November 2021:

1.       130,070 vacancies in accommodation and food services

2.       In health care and social support, there are 119,590 job vacancies.

3.       103,990 employment opportunities in the retail trade.

4.       Manufacturing has 81,775 employment opportunities.

Approximately 5,000 posts in the Global Talent Stream and 23,000 positions in the High-Wage Stream were approved by the TFW Program in 2021. Together, these programs contribute to around 21% of all LMIA posts allowed for that year.

Each year, about 50,000 and 60,000 foreign agricultural laborers arrive in Canada, making up more than 60% of all foreign workers hired through the TFW Program.

From October 27 to December 20, 2020, ESDC held consultations on Minimum Requirements for Employer-Provided Accommodations. Many stakeholders, including provincial/territorial governments, municipalities, fire chiefs, public health units, businesses, industry associations, unions/labour groups, and foreign governments, submitted around 150 written responses. Migrant worker support organizations submitted applications on behalf of around 675 migrant employees.

Hence, As part of the Government of Canada’s continued efforts to protect Canadians and their health care system during the COVID-19 pandemic, an upgrade was made to further strengthen the Temporary Foreign Worker Program. Reach SAAB Immigration to find out what you need to know about being a temporary foreign worker in Canada. Understand and know how the program works and what are the requirements.