Prepared by Shreeya A Pal; Shi Hui Yu; Edited by Samuel Francis Gills on April 8, 2022

Canada has taken steps to make it simpler for Canadian businesses to hire foreign workers on a temporary basis as the country faces acute labour shortages in major cities. At the same time, Canada retains its low unemployment rate and opens pathways for international skilled workers to find new work avenues through immigration.

Bringing in temporary foreign workers to cover occupations where there are no Canadians available is one way to overcome labour shortages. The other would be through new immigrants coming in through the various permanent resident pathways.

The reforms to the Temporary Foreign Worker Program (TFWP) are intended to aid Canada’s workforce development. The TFWP is about to undergo five significant modifications. Starting right now:

  • LMIAs will now be valid for 9 months to 18 months. LMIA is a documentation that shows the Canadian government that employing a foreign worker would not have a detrimental impact on the labour market. LMIAs were only good for six months before to the epidemic.
  • The maximum length of employment for High-Wage and Global Talent Stream employees will be increased from two to three years. Workers will be able to qualify for more routes to permanent residency because of this extension, allowing them to contribute to the Canadian workforce in the long run.
  • Employers in industries with demonstrable labour shortages will be able to use the TFWP to hire up to 30% of their workers for low-wage roles for a year. Food manufacturing, wood product manufacture, furniture, and related product manufacturing, lodging and food services, construction, hospitals, and nursing and residential care facilities are among the seven industries that are qualified. Until further notice, all other companies will be able to hire up to 20% of their workforce under the TFW Program for low-wage occupations, an increase from the previous 10% maximum for many employers.
  • Finally, Canada will eliminate its existing policy of automatically rejecting LMIA applications for low-wage jobs in the lodging and food services and retail trade sectors in locations with a 6% or higher unemployment rate.


The labour market in Canada is tighter than it was before the outbreak. In the third quarter of 2021, the employment vacancy rate hit an all-time high. Low-wage jobs account for a large portion of the unmet labour demand. According to Statistics Canada, the following industries had the most job openings in November 2021:

Accommodation and Food Services – 130,070 vacancies

Health Care and Social Assistance – 119,590 vacancies

Retail Trade – 103,990 vacancies

Manufacturing – 81,775 vacancies

Check out Owlspriority Immigration’s Canada Settlement Resources to learn more about ways to find a new job in Canada, making your initial days in Canada stress-free and confident.

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