Work in Canada
Canada Set to Overhaul the High Wage Stream of the Temporary Foreign Worker Program
Canada’s Temporary Foreign Worker Program (TFWP) has long been a vital tool for businesses facing labor shortages, allowing them to hire international workers when local talent isn’t available. Recently, the federal government announced a significant review of the High Wage Stream of the program. This review could lead to important policy changes aimed at ensuring the program addresses genuine labor market needs and that Canadian workers remain a priority.
What Is the High Wage Stream of TFWP?
The High Wage Stream of the TFWP allows Canadian employers to hire foreign workers at wages equal to or above the median wage for a given position in the country. This stream has been essential in filling positions in specialized, high-skill sectors that have ongoing labor shortages. However, as Canada’s job market evolves, there is a growing emphasis on hiring domestic talent first.
In response to these changes, the federal government has launched a 90-day review of the High Wage Stream. This review is expected to result in the following adjustments:
Tighter conditions for work permits: Employers may need to meet more stringent criteria before hiring foreign workers.
Revisions to Labour Market Impact Assessments (LMIAs): This includes potential changes in how unfilled job positions are assessed.
Sector- or location-based refusals: Some LMIA applications, particularly for rural or specific industries, could face rejection.
The overall goal is to safeguard Canadian jobs while ensuring that the TFWP serves as a legitimate response to labor shortages when no qualified Canadians are available.
Anticipated Changes to the High Wage Stream
Here’s a closer look at the potential changes in the High Wage Stream and their effects on employers:
| Expected Changes | Impact on Employers |
| Stricter LMIA requirements | Longer processing times, higher burden of proof for labor shortages |
| Sector-specific adjustments | Some sectors, like healthcare or tech, may see exceptions to the rules |
| Rural area modifications | Potential refusal of LMIAs in low-demand rural jobs |
How Will This Review Affect Employers and Foreign Workers?
For businesses that rely on the High Wage Stream, the review may introduce both challenges and opportunities. Industries like manufacturing, construction, and engineering might face new hurdles when trying to secure LMIAs for foreign workers. Employers will likely need to ramp up efforts to recruit locally, ensuring that all possible avenues are explored before turning to international labor.
Temporary foreign workers, especially those seeking jobs in rural or lower-demand sectors, might experience delays in their application process or find fewer job openings. On the other hand, sectors facing critical shortages, such as healthcare and tech, may see more flexibility in the rules, allowing them to continue attracting foreign talent where it is most needed.
Previous Changes to the TFWP’s Low Wage Stream
This review of the High Wage Stream follows recent changes to the Low Wage Stream of the Temporary Foreign Worker Program, which took effect on September 26, 2024. Some key adjustments include:
A 10% cap on hiring foreign workers for most sectors, with exceptions for healthcare, construction, and food processing, which have a 20% cap.
LMIAs approved under the Low Wage Stream will now only allow foreign workers to stay for one year, except for those in the Primary Agriculture Stream.
Low-wage LMIAs are no longer processed in regions with an unemployment rate over 6%, except in critical sectors like healthcare.
These changes reflect the government’s continued effort to balance immigration and employment needs in Canada, ensuring that foreign workers are brought in only when necessary.
Political and Economic Factors Behind the Review
The review of the High Wage Stream is taking place amidst rising concerns about unemployment and immigration levels in Canada. Public sentiment is shifting, with many Canadians urging the government to prioritize local workers before considering international hires. With a federal election on the horizon in 2025, there is mounting political pressure on the government to demonstrate that it is managing immigration effectively and responsibly.
This review of the TFWP, particularly the High Wage Stream, is one of the government’s many steps to show that Canadian workers come first, while still addressing the labor needs of critical sectors. The outcome of this review is expected to reshape the way the TFWP functions, and employers and foreign workers alike should be prepared for changes.
Preparing for the Future: What Employers and Workers Should Do
For employers, now is the time to focus on strengthening recruitment strategies and investing in local talent. Employers should stay informed about the upcoming changes to the High Wage Stream and be ready to adjust their hiring processes accordingly.
Temporary foreign workers should also monitor the review closely, as the evolving policies may affect their ability to work in Canada. Staying up to date on new developments will be crucial in navigating any changes to the application process and understanding where the opportunities may lie.
The review of the High Wage Stream reflects Canada’s commitment to ensuring the TFWP remains a balanced, fair system. While changes are on the horizon, the focus remains on maintaining a program that supports both employers and Canadian workers in a responsible way.
