The federal government is preparing to raise the minimum hourly wage required to hire temporary foreign workers in the high-wage stream, with the aim of encouraging employers to hire more Canadian workers.
Under the current high-wage stream of the Labour Market Impact Assessment (LMIA) program, employers must pay foreign workers at least the median hourly wage in their province to secure a work permit. However, a government official, speaking anonymously as they were not authorized to speak publicly on the matter, confirmed that Employment Minister Randy Boissonnault will announce a 20% increase to this threshold. This change is expected to take effect on November 8, 2024.
The new rule will require employers to pay high-wage temporary foreign workers 20% above the provincial median wage, further tightening eligibility for foreign hires. For example, in Ontario, where the current median wage is $28.39 per hour, employers will need to pay at least $34.07 per hour once the new rules come into force.
This policy change is part of the government’s broader strategy to prioritize hiring Canadian workers over temporary foreign labor. The Liberal government has faced growing criticism over its immigration policies, with some pointing to the influx of temporary residents as a contributing factor to housing shortages and increased living costs.
The Temporary Foreign Worker (TFW) program has also been under scrutiny due to allegations of worker mistreatment. Under the LMIA process, employers must demonstrate a lack of available Canadian workers before they can hire foreign employees.
The wage increase will apply to approximately 34,000 workers in the high-wage stream, according to government estimates. While existing work permits will not be affected, renewals will be subject to the new wage requirements.
Public data from Immigration, Refugees and Citizenship Canada show a significant rise in temporary foreign worker permits, with 183,820 issued in 2023, an 88% increase from 2019. This latest wage hike follows previous measures aimed at limiting the number of temporary foreign workers, such as capping the percentage of low-wage workers in certain sectors and ending permits in metropolitan areas with high unemployment rates.
Agricultural workers, who fall under a separate category, are not affected by the recent or upcoming changes to the TFW program.