Ottawa extends low-wage temporary foreign worker LMIA maximum to two years, proposes more changes

The Story

The federal government says it will extend the maximum duration of a low-wage Labour Market Impact Assessment, the document employers need to hire a temporary foreign worker, to two years from one.

Ottawa says restrictions on hiring temporary foreign workers in cities with unemployment rates above six per cent will remain in place, but it is adding early childhood educators to the list of professions exempted from those restrictions.

The government is also proposing additional measures for low-wage Labour Market Impact Assessment applications that are set to take effect March 1, 2027, with provinces and territories required to opt in for the changes to apply.

One proposed measure would let provinces and territories add or remove occupations from the list of jobs exempted from the six-per-cent rule.

Ottawa is also proposing to give provinces and territories the power to allow employers to expand the share of workforces made up of low-wage temporary foreign workers to 15 per cent, up from the current limit of 10 per cent.

Immigration Minister Lena Diab said the government intends to work more closely with provinces and territories on tailoring the program to regional needs, adding: "I have heard also loud and clear from many people across the country, no matter who they are, that there is a need for that program."

Diab said while the temporary workers’ share of the workforce might rise in some fields, the government’s position is that all jobs should be made available to Canadians first, stating: "But we do recognize that we also need the skilled trades and the skilled people that have different skills than what we have in Canada, but also there are regions in the country that do not have the Canadians applying."

She added that the percentages set by provinces and territories would determine whether changes proceed, saying: "The percentages that you raise will be up to the provinces and territories to say yes or no. This is again working in partnership with the provinces in territories who will decide whether that is the right thing to do for their provinces, and if so, where in the regions."

Diab also announced that the Rural Community Immigration Pilot will be made permanent and that it will include a permanent residency pathway.

The pilot involved more than 1,950 vetted employers in 14 rural communities facing labour shortages that could not be filled solely with local workers, with the government helping employers connect with skilled foreign workers who were put on a path to permanent residency.

Ottawa says about 5,500 permanent residency slots are assigned to the program in the latest immigration levels plan, and it says it plans to open the program to more communities in the future.

Conservative Leader Pierre Poilievre said Friday that the temporary foreign worker program should not be an option in communities where the unemployment rate is above 5.5 per cent, while Statistics Canada reported a national unemployment rate of 6.7 per cent in October.