After Covid pandemic, In Canada, The government is making extra efforts to hire more Temporary Foreign Workers to increase the economy.
Minister Randy Boissonnault recently provided updates on a plan called Temporary Foreign Workforce Solutions Road Map. This plan is meant to assist employers in dealing with worker shortages by making adjustments to the Temporary Foreign Worker Program (TFWP).
The Road Map is like a guide for employers to handle situations where there’s not enough labor or when the economy is changing in Canada. It allows them to change the TFWP based on what’s happening with the workforce and the economy.
The recent announcement includes several changes to the Temporary Foreign Workforce Solutions Road Map:
1. In seven specific sectors (Food Manufacturing, Wood Product Manufacturing, Furniture and Related Product Manufacturing, Accommodation and Food Services, Construction, Hospitals, and Nursing and Residential Care Facilities), employers can hire up to 30% of their workforce for low-wage positions through the TFWP.
2. Jobs paying less than the minimum wage set by the province or territory will have a maximum employment duration of two years for Express Entry.
3. Requirements for Labour Market Impact Assessments (LMIAs) to work in Canada will now be valid for a maximum of 12 months instead of the previous 18-month limit.
4. Starting January 1st, 2024, employers must review their temporary foreign workers’ wages annually to ensure they match the prevailing rates for their occupation and region. These measures are in place until August 30th, 2024, with the flexibility to adjust based on labor market and economic conditions.
While Canada has made progress in addressing labor shortages post-COVID-19, certain sectors still face persistent worker shortages. Despite a steady 5.5% unemployment rate for the past three months, sectors like the ones mentioned earlier struggle with a lack of workers. This is evident in a 40% increase in employer demand for the TFWP compared to the same period last year.
What is the Temporary Foreign Worker Program (TFWP)?
The Temporary Foreign Worker Program (TFWP) is a major work permit program in Canada managed by Immigration, Refugees, and Citizenship Canada (IRCC). It’s a way for Canada to handle workforce shortages by bringing in foreign workers.
This program has different streams, like ones for agriculture, live-in caregivers, and workers with both high and low wages. Canadian companies can hire foreign nationals through this program, but they need something called a Labour Market Impact Assessment (LMIA). It’s a process where the government checks if a Canadian citizen or permanent resident could have been hired for the job. If the LMIA says it’s okay or doesn’t have a problem, the company can hire a foreign worker. If the LMIA doesn’t support the hiring, the work permit application gets rejected. Also, work permits supported by LMIA are specific to one employer and one industry.
It’s crucial to follow the rules in this program. The Canadian government keeps online records of employers who don’t meet the TFWP standards, like wages, working conditions, and workers’ rights. There’s even a safety program for vulnerable workers in the program. IRCC introduced the Recognized Employer Pilot (REP) to make the LMIA process smoother for trusted employers with a good track record in the program. This shows how important these workers are in filling ongoing job openings.
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