Canada: Temporary Resident Numbers to be Revisited Through New Measures

Shorter validity for Labour Market Impact Assessments (LMIA)

• LMIAs will be valid for six months, down from the current 12-month validity. Prior to COVID-19, LMIAs were valid for six months; and under subsequent temporary policies, the validity increased to 18 months in 2022; and decreased to 12 months in 2023 in response to changing labour market conditions.
• The LMIA is a document that employers in Canada must obtain before certain foreign nationals can apply for a work permit through the TFWP. It proves that employers have taken steps to recruit Canadians and that employing the foreign national in Canada would be beneficial to the labour market.  

• Employers will need to better manage their labour needs and may have less flexibility to hire foreign nationals instead of Canadians.
• Additionally, the government announced that employers will need to explore every option to consider Canadian citizens, permanent residents and other residents first for job opportunities, before applying for an LMIA — including recruiting asylum seekers with valid work permits in Canada.

Cap decrease for low-wage employers

Employers in sectors with demonstrated labour shortages in low-wage positions (including food, wood product and furniture manufacturing, and accommodation and food services) will be allowed to hire up to 20% of their workforce through the TFWP for employers, instead of the current 30% cap. Exceptions will apply to the construction and healthcare sectors. 

• Employers in sectors with low-wage positions may need to fill more vacancies with Canadian citizens, permanent residents or asylum seekers in Canada holding work permits.
• The exception for construction and healthcare sectors will address current job vacancies across these areas, which are still experiencing significant labour shortages.