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Temporary Foreign Worker Program Set for Changes, Carney Announces

Prime Minister Mark Carney said that the government is thinking of making severe changes into the Temporary Foreign Worker Program (TFWP).

During a 10th September address to the Liberal caucus in Edmonton, Carney emphasized that the TFWP “must have a focused approach that targets specific, strategic sectors and needs in specific regions,” and that the government is actively looking towards these goals.

Carney did not mention much about the nature of expected changes.

TFWP is a Canadian government program that allows employers to hire foreign nationals to fill temporary labour and skill shortages when no suitable Canadian citizens or permanent residents are available. workers can only apply once the employer goes to a Labour Market Impact Assessment (LMIA).

The LMIA undertaken by Employment and Social Development Canada, must clearly show that the hiring of foreign worker will have either positive or no impact on the jobs availability for the Canadian citizens and the people with Permanent Residence (PR).The main thing is that Canadian citizens and people with PR should not get negatively impacted by TFWP.

One of the opposition leaders Pierre Poilievre has argued that TFWP is affecting the job availability for Canadians and there is a decline in job opportunities for them, on the other side Conservative Party of Canada have called for abolition of the program.

Key changes made by the government in last one and an half year are as follows:

  • A target of 82000 net new admissions of TFWP workers for the year 2025 was made;
  • Establishing a moratorium on the processing of low wage LMIAs in regions with an unemployment rate of 6% or higher.
  • Threshold rise in the wages for the high wage stream of TFWP to 20% above the median regional wage.
  • Reduction in the caps for the the percentage of an employers workforce that can be employed through the TFWP
  • Restricting availability of spousal open work permits (SOWPS) to spouses of TFWP holders employed in TEER 0 to 1 occupations, or in select in demand TEER 2 or 3 occupations and it is required that TFWP worker having at least 16 months remaining on their work permit.

A major fall by 50% is observed in the issuance of work permits from January-June in 2025 in comparison to last year which is huge and only 33722 net new TFWP work permits were issued.

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