On September 18, 2024, Minister of Immigration, Refugees and Citizenship, Marc Miller announced his intention to adopt a new series of measures in order to strengthen temporary residence programs in Canada and ensure more sustainable growth and outcomes1. This announcement comes at a time when the government of Canada is facing an increase in temporary residents and is forced to start taking action to reach its objective of decreasing Canada's total foreign national population from 6.5% to 5% by 2026.
In the same vein, the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, also announced the government's intention to build on the August 26, 2024 announcement regarding the reform of the Temporary Foreign Worker Program (TFWP) that handles Labour Market Impact Assessments (LMIAs)2.
Both announcements come at a crucial time when Canada's economy has evolved and requires a new outlook on its current immigration system and how it can be adapted to contribute to a softening of the labour market.
Following the announcements, a series of changes were unveiled to allow the federal government to meet its objectives and targets. These changes are expected to come into force at different times.
Key Updates Regarding the Temporary Residence Program
- Reducing Study Permit Targets: The Federal government now plans to further reduce the target established for study permits emitted. These targets will be decreased by 10% for the years 2025 and 2026 compared to the number issued in 2024. The aim is to issue up to 437,000 study permits in each of these years, which represents a 36% decrease from 2023.
- Prioritizing students pursuing master's and doctoral degrees: Starting in 2025, master's and doctoral students will be included in the federal cap on international students admitted into Canada. An annual target for international students will be established, making the cap a permanent feature of the immigration system. Approximately 12% of the cap will be reserved for master's and doctoral students, aligning with Canada's labour market needs.
The changes are expected to result in approximately 300,000 fewer study permit holders over the next three years.
- Modifications to the Post-Graduation Work Permit Eligibility: Under the new program, graduates from bachelor's, master's, and doctoral degree programs will remain eligible for a work permit of up to three years following their studies. For graduates from programs at public colleges, they will be eligible for a work permit of up to three years only if their field of study is linked to labour market shortages in Canada.
- New Language Proficiency Requirements for Work Permits: Furthermore, as of November 1, 2024, a new language proficiency requirement will be introduced for post-graduation work permit applicants. University graduates will need to meet Canadian Language Benchmark (CLB) level 7, while college graduates will need to meet CLB level 5. All applicants will have to submit this proof of language proficiency to be admissible to the program.
According to the federal government, these changes are expected to result in approximately 175,000 fewer post-graduation work permits over the next three years, allowing graduates who have the pertinent skills and work opportunities to successfully integrate into Canada's labour market and potentially transition to permanent residence.
- Restrictions on Spousal Open Work Permits: One of the biggest changes to be put in place is that eligibility for spousal open work permits will be further limited, particularly for spouses of students in doctoral and certain master's programs. The government hopes this will result in approximately 50,000 fewer work permits for the spouses of students over the next three years.
- Targeted Eligibility for Spouses of Highly Skilled Workers: There will also be a limitation on spousal work permits. Only the spouses of highly skilled, specialized workers (e.g., C-suite executives, scientists, engineers) or workers in sectors with labour shortages will be eligible to obtain spousal work permits. Spouses of workers in critical sectors, such as health care and construction, will remain eligible for work permits.
These changes are expected to result in approximately 100,000 fewer work permits for this group of spouses over the next three years.
Finally, in order to prevent the exploitation of immigration programs and to ensure the objectives and new directives are being followed, the deputy minister has been asked to review the decision-making process of visa officers. Minister Miller also plans to work in collaboration with Minister Boissonnault to address the issue of fraud in temporary foreign workers program in Canada and hold employers accountable.
Key updates regarding the Temporary Foreign Worker Program (TFWP)
As indicated in our previous article Adapting to the Evolving Immigration Policies: A Guide for Employers, some of the modifications introduced by Minister Boissonnault which came into force as of September 26th are the following3:
- Limit to TFW under the Low-Wage Stream: There is now a cap of 10% on the number of temporary foreign workers that employers can hire under the Low-Wage Stream, which also includes the occupations covered by the Faciliated Labour Market Impact Assessment (LMIA) process in Québec. However, this restriction does not apply to occupations in the healthcare, construction, and food processing sectors. Employers seeking to fill labour shortages in these sectors will be permitted to keep a 20% cap.
- One-year limit to LMIAs under the Low-Wage Stream: Employers who receive approval for LMIAs within the Low-Wage Stream are permitted to hire temporary foreign workers for a period not exceeding one year. This time limitation also applies to LMIAs processed under the Facilitated Process, except when it comes to occupations within the Primary Agriculture Stream.
- Suspension of processing of LMIAs in certain metropolitan areas: A policy of non-processing is now enforced for LMIA applications in the Low-Wage Stream for all metropolitan areas where the unemployment rate is at or above 6%. Exceptions are made for positions in the healthcare, construction, and food security (primary agriculture, food processing and fish processing) sectors, for which LMIA applications will still be processed. The unemployment rate data for Census Metropolitan Areas (CMA) will be refreshed quarterly, coinciding with the release of the first Labour Force Survey of each fiscal quarter. The corresponding list will be revised and made available on the day that these statistics are released.
Employers should consult the official median wage rates to determine the relevant stream for their LMIA applications.
How you can best prepare your employees for these changes
Although Canada has a long and proud history of welcoming newcomers from around the world who support their economy and enrich our country, it is shifting its stance in regards to immigration and adapting its temporary residence programs to the country-specific needs, particularly in light of the labour market. It is important for employers to stay aware of these changes. Further updates will be made to Temporary Residence Program and the Temporary Foreign Worker Program (TFWP) in the coming weeks.
Footnotes
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