Work in Canada
Key Changes to Canada Work Permit LMIA Effective May 2024: What You Need to Know?
The Canadian government has implemented new changes to the Temporary Foreign Worker Program, specifically concerning Canada Work Permit Labour Market Impact Assessments (LMIA) for work permits. These changes, effective from May 1, 2024, aim to address shifting labour market conditions and ensure that the program is utilized appropriately.
LMIA, short for Labour Market Impact Assessment, is a crucial step in the process of hiring foreign workers. It involves an assessment by Employment and Social Development Canada (ESDC) to determine if there are available Canadians to fill job positions offered by Canadian employers.
Canada Work Permit LMIA – Key Changes
- Validity Period: New LMIA assessments will now be valid for six months instead of the previous twelve. This shorter timeframe ensures a more accurate reflection of current labour market needs.
- Reduction in Low-Wage Stream: Except for the construction and healthcare industries, all sectors listed in the 2022 Workforce Solutions Road Map will need to reduce the percentage of their workforce hired under the low-wage stream from 30% to 20%.
- Consideration of Asylum Seekers: Employers are now required to consider hiring asylum seekers who hold valid work permits in Canada before requesting an LMIA. This expands the pool of potential candidates and promotes inclusivity in the workforce.
Industries Covered
The Workforce Solutions Road Map 2022 encompasses seven industries:
- Food Manufacturing
- Wood Product Manufacturing
- Furniture and Related Product Manufacturing
- Accommodation and Food Services
- Construction
- Hospitals
- Nursing and Residential Care Facilities
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Salary Assessment Requirement
As of January 1, 2024, employers must annually assess the pay of temporary foreign workers to ensure it aligns with prevailing rates in their specific field and location. This measure aims to maintain fairness and equity in compensation.
Current Job Openings in Canada
As of January 2024, there were 632,100 job vacancies across all sectors, indicating a significant decrease from the record high observed in 2022.
These changes reflect the Canadian government’s act to balance the needs of the labour market while prioritizing opportunities for Canadian workers. By staying informed about these updates, both employers and foreign workers can navigate the work permit process more effectively and contribute to Canada’s economy in a meaningful way.
