Feds extend Workforce Solutions Road Map; introduce new wage requirements under Temporary Foreign Worker Program

GATINEAU, QC – The Government of Canada has announced new wage requirements under the Temporary Foreign Worker (TFW) Program Workforce Solutions Road Map.

Originally introduced in April 2022, the TFW Program Workforce Solutions Road Map was designed to help employers fill job vacancies during labour shortages.

The changes were announced on October 26 by Minister of Employment, Workforce Development and Official Languages Randy Boissonnault stating that the changes are being made to “better reflect current labour market conditions and the economic outlook for the future.”

Changes to the program include:

• Continuing to allow employers in seven sectors with demonstrated labour shortages to hire up to 30 per cent of their workforce through the TFW Program for positions under the provincial or territorial median hourly wage;
• Maintaining the maximum duration of employment for positions under the provincial or territorial median hourly wage at up to two years; and
• Adjusting the Labour Market Impact Assessment (LMIA) validity period from the current 18-month maximum to a maximum of 12 months to better respond to the labour market.

These extended measures will be in place until August 30, 2024.

The Government of Canada also announced that as of January 1, 2024, employers will be required to annually review temporary foreign workers’ wages “to ensure that they reflect increases to prevailing wage rates for their given occupation and region of work.”

“Temporary foreign workers are essential to Canada’s economy, and many sectors continue to rely on their contribution when faced with persistent job vacancies amid acute labour shortages. That is why we are extending these temporary measures for an additional 10 months,” stated Boissonnault. “However, they will be adjusted as the labour market continues to evolve rapidly following Canada’s unprecedented economic recovery. At the same time, we are also introducing permanent new wage requirements that will require employers to review wages annually when prevailing wages go up, in order to avoid wage suppression and ensure that workers’ wages are protected and can grow. Employers must understand that the Temporary Foreign Worker Program should be supporting wage growth in this country, not preventing it.”