Canada to halt issuing LMIAs for the Low-Wage Stream

The Government of Canada has announced that, starting September 26, 2024, it will stop processing Labour Market Impact Assessments (LMIAs) under the Low-Wage Stream for census metropolitan areas with an unemployment rate of 6% or higher. Exceptions will be made for critical sectors such as primary agriculture, food processing, fish processing, construction, and healthcare.

Additional changes to the Temporary Foreign Worker (TFW) Program include reducing the cap on foreign workers to 10% of an employer’s workforce, down from the previous 20%, and shortening the maximum employment duration for Low-Wage Stream workers from two years to one year. These measures aim to reduce reliance on foreign workers and prioritize Canadian talent amid rising unemployment.

Minister Randy Boissonnault and Prime Minister JustinTrudeau emphasized the need to invest in the domestic workforce, urging employers to explore untapped resources within Canada and to focus on retraining and upskilling their existing employees as the labor market shifts.