3 New LMIA Updates Officially In Effect

Last month, Immigration, Refugees and Citizenship Canada (IRCC) announced significant updates regarding the issuance of Labour Market Impact Assessments (LMIA) for low-wage positions.

These updates took effect on September 26, 2024 and could impact businesses across Ontario that rely on temporary foreign workers.

LMIA changes now in effect

As of September 26, 2024, LMIAs for low-wage jobs in regions with unemployment rates of 6 per cent or higher will no longer be processed. However, there are important exemptions for sectors deemed critical to food security, such as primary agriculture, food processing, and fish processing. Exemptions also extend to the construction and healthcare sectors—industries that are vital to Ontario’s economy.

Additionally, employers are now limited to hiring no more than 10 per cent of their workforce through the Temporary Foreign Workers (TFW) program for low-wage positions. For construction and healthcare employers, the cap has been reduced to 20 per cent.

Lastly, the maximum employment duration for low-wage temporary foreign workers has been shortened from two years to one year.

Canada reducing temporary foreign workers in the country

These changes are part of Canada’s efforts to reduce the reliance on temporary foreign and prioritize employing homegrown talent. The government aims to crack down on the increasing misuse of the TFW program as a pathway to permanent residency.

“The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy.” – Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault