The Government of Canada is taking steps to enhance the minimum hourly wage for temporary foreign workers in the high-wage stream. This initiative aims to motivate businesses to employ more Canadian workers.
New Wage Requirements Announced
A government insider, who remains unnamed due to confidentiality, has revealed that Employment Minister Randy Boissonnault will announce this change on Tuesday. The revised protocol will require employers to set wages at least 20% above the provincial median hourly wage, raising standards in the Temporary Foreign Worker program’s high-wage labour market impact assessment (LMIA) stream. This adjustment will take effect on November 8.
Addressing Labor and Economic Concerns
The federal government is shifting this policy as part of its ongoing efforts to address criticisms about the rising number of temporary residents, which many link to housing shortages and higher living costs. Allegations of improper treatment of workers have also tainted the program.
Employers must secure an LMIA to hire international labor, essentially proving insufficient Canadian workers are available for these roles.
For example, in Ontario, where the current median high-wage rate is $28.39 per hour, employers must now offer a minimum of $34.07 per hour once they implement the new regulation.
Impact on Workforce and Future Permits
The upcoming policy adjustment is expected to affect around 34,000 workers currently in the LMIA high-wage stream. Although current permits will remain unchanged, workers will need to follow the new regulations for renewals.
Immigration, Refugees and Citizenship Canada reports that in 2023 alone, officials issued 183,820 temporary foreign worker permits, up from 98,025 in 2019.
The government is implementing this move as part of several strategies to refine criteria and manage the influx of temporary residents, including international students and foreign workers. Other measures include capping low-wage foreign workers in certain sectors and halting permits in metropolitan areas with significant unemployment rates.
Notably, changes do not encompass temporary foreign agricultural workers.
