CIMM – Temporary Foreign Worker Program – November 25, 2024

Key Facts and Figures

• Under the 2025-2027 Levels Plan, the 2025 Temporary Foreign Worker Program (TFWP) target is 82,000 entries into Canada, excluding seasonal workers, the vast majority of whom are in agriculture.
• From January to October 2024, 162,100 new work permits were issued under the TFWP. This figure includes the 33,775 issued under the Seasonal Agricultural Worker Program, along with work permit extensions, both of which are excluded from the target.
  • Given the data timeframe, these figures do not reflect the tightened TFWP eligibility criteria implemented since September 2024; further permit issuance reductions in are expected in 2025, when the targets set out in the 2025-2027 Levels Plan take effect.

Key Messages

• Consistent with the government’s aim to reduce temporary residents to 5% of Canada’s overall population by the end of 2026, Canada’s foreign worker programs – TFWP and the International Mobility Program – are being recalibrated to ensure that they align with economic/labour market needs, community planning, and international/humanitarian commitments.
• The TFWP is co-administered by Employment and Social Development Canada (ESDC) and IRCC. Employers must obtain a Labour Market Impact Assessment (LMIA) to demonstrate that no Canadian labour is available to perform the same job.
• In spring 2024, ESDC expanded employer recruitment obligations to include asylum seekers; reduced LMIA validity periods from 12 months to six months; and reduced the cap on low-wage workers from 30% to 20% for most sectors except construction and healthcare.
• On September 26, 2024, ESDC further tightened the rules for the TFWP low-wage stream, including: reducing the cap from 20% to 10%; limiting the maximum employment duration to one year instead of two; and refusing to process (RTP) LMIA applications for positions in census metropolitan areas with an unemployment rate of 6% or higher.
  • The 10% cap and RTP apply primarily to the accommodation, food services, and tourism industries; the healthcare, construction, and food security/processing sectors are exempt.
• On October 21, 2024, ESDC announced that, effective November 8, 2024, the minimum wage threshold for employers to hire through the TFWP’s High-Wage stream will increase to 20% ($5 to $8) above the provincial-territorial median hourly wage, which varies by province/territory.
  • This reform is designed to prioritize the hiring of domestic workers and reduce wage suppression, in keeping with the TFWP’s goal of protecting Canada’s economy and Canadian workers.
  • A greater number of jobs (roughly 34,000 positions) are expected to be subject to the stricter rules of the Low-Wage Stream, including additional employer requirements related to housing, transportation and recruitment of workers already in Canada.
  • As a result, this change in wage threshold could potentially further reduce temporary worker volumes by 20,000 positions, as employers turn towards hiring Canadian workers instead of hiring through the Low-Wage Stream.
• As part of the LMIA, all job offers made by employers must be assessed to ensure that both the business and the job offer are genuine and legitimate. As of October 28, 2024, employers are no longer able to use attestations from professional accountants or lawyers to prove their business legitimacy.
• The TFWP will continue to build on existing information sharing agreements with provincial and territorial partners, as well as existing employer registries, to enhance data sharing and ensure that only genuine and legitimate job offers are approved.

Supplementary Information

• Temporary residents targets will capture new arrivals only, which will provide the number of new workers and students entering Canada each year. Excluded categories include: work or study permit extensions, change of status from within Canada (e.g., post-graduation work permits) and seasonal workers.