Canadian companies will now have an easier time hiring foreign workers

The Canadian government has decided to support Canadian employers who hire foreign employees. Low unemployment and staff shortages in the country encourage employers to hire employees from abroad, and a special Temporary Foreign Worker (TFW) Program is available for this purpose. At the same time, the burden of employing a foreign specialist is largely on the employer, and to simplify the process, there is a Workforce Solutions Road Map.

The government presented it to businesses in April 2022, and it helps employers fill job openings. Now, Canada's Minister of Employment, Workforce Development and Official Languages Randy Boissonnault has announced changes to the Map. They were a response to current labor market conditions and the economic outlook.

These extended measures will remain in effect until August 30, 2024, and will be reviewed as labor market and economic conditions continue to evolve in the months ahead. They include:

• Extending the ability to hire up to 30% of the workforce for minimum hourly wage positions under the TFW Program in 7 sectors with increased staffing shortages (hospitals, food manufacturing, construction, wood products, furniture and related products, aged care facilities, and accommodation and food services);
• Keeping the maximum length of employment to 2 years for positions with hourly wages below the provincial minimum wage;
• Adjusting the duration of the Labor Market Impact Assessment (LMIA) from the current maximum of 18 months to a maximum of 12 months to better respond to labor market conditions.

"Temporary foreign workers are essential to Canada’s economy, and many sectors continue to rely on their contribution when faced with persistent job vacancies amid acute labour shortages. That is why we are extending these temporary measures for an additional 10 months," commented Boissonnault.

In addition, the state has made another adjustment to protect the interests of foreign workers. As of January 1, 2024, employers will be required to annually review the wages of temporary foreign workers to ensure that they are comparable to prevailing wage rates for the occupation and region.

"Employers must understand that the Temporary Foreign Worker Program should be supporting wage growth in this country, not preventing it," the Minister added.

Recently, economists have noted some signs that labor shortages are easing. However, the labor market recovery has been inconsistent, and some sectors are still experiencing severe staff shortages.