Japa: Canada Limits Dependency On Foreign Workers To Boost Local Hiring

Canada is set to implement a freeze on processing Labour Market Impact Assessments (LMIAs) for low-wage jobs in cities with an unemployment rate of 6% or higher, effective September 26, 2024.

This move, as reported by Immigration News Canada, forms part of a series of broader changes to the Temporary Foreign Worker (TFW) Programme aimed at reducing dependency on foreign workers and prioritising Canadian talents.

An LMIA is a crucial document that Canadian employers may require before hiring a foreign worker. This recent decision to freeze LMIA processing aligns with the government’s strategy to refocus the programme on local employment.

As part of the changes, employers will now face a new 10% cap on the proportion of their workforce that can be hired through the TFW Programme, a reduction from the 20% limit set in March 2024.

Additionally, the maximum employment duration for low-wage stream workers will be reduced from two years to one year.

Nigerians have taken the advantage of global immigration window to seek foreign employment through the skilled and unskilled workers migration in what has been renowned as ‘japa’ which means to relocate.
Many Nigerian trained medical, technology, engineering other experts, including teachers have embraced the ‘japa’ options to seek the proverbial greener pasture overseas.
Canada’s Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, emphasised the government’s commitment to investing in the Canadian workforce.

“The Temporary Foreign Worker programme 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 prioritise Canadian workers and ensure Canadians can trust the programme in meeting the needs of our economy,” Boissonnault said.

While the freeze and new restrictions apply broadly, exceptions will be made for critical sectors such as primary agriculture, food processing, fish processing, construction, and healthcare.

In these sectors, the government will continue to process LMIAs, acknowledging the essential nature of these industries to the Canadian economy.

Employers are now being encouraged to explore domestic talent pools, including young people, newcomers, and persons with disabilities.

The government is also urging employers to invest in retraining and upskilling their current employees to adapt to the changing economic landscape.

The Canadian government has pledged to closely monitor labour market conditions and make further adjustments to the TFW Programme as needed.

A review of the programme is scheduled within the next 90 days, which may result in modifications to the high-wage stream, sectoral exceptions, and the processing of existing LMIA applications.

These changes are part of the government’s efforts to reverse policies put in place during the pandemic to address severe labour shortages.

As the unemployment rate increased to 6.4% in June 2024, the government began reducing the validity of LMIAs from 18 months to 6 months and lowering the cap on temporary foreign workers from 30% to 20%.

Recall that on August 20, 2024, a temporary freeze on new TFW approvals in the low-wage stream in Montreal was announced, effective September 3, 2024, for job offers with wages below $27.47 per hour.

This means that starting next month, Montreal will temporarily halt the approval of new TFW applications for low-wage jobs that pay less than $27.47 per hour.