The federal government is set to increase the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream in order to encourage employers to hire more Canadian staff. Currently, employers must pay at least the median income in their province under the program’s high-wage labour market impact assessment (LMIA) stream. The new threshold will be 20% above the provincial median hourly wage, with the change scheduled to take effect on November 8. The goal of this change, as with previous adjustments to the Temporary Foreign Worker program, is to incentivize employers to prioritize hiring Canadian workers. The Liberal government has faced criticism for the increase in temporary residents allowed into Canada, which has been connected to housing shortages and a higher cost of living.
A LMIA is necessary for an employer to hire a temporary foreign worker, demonstrating that there aren’t enough Canadian workers available to fill the positions. In Ontario, the median hourly wage for the high-wage bracket is $28.39, meaning that employers will need to pay a minimum of $34.07 per hour once the new threshold is implemented. It is estimated that this change will affect up to 34,000 workers under the LMIA high-wage stream. While existing work permits will not be impacted, renewals will be subject to the new wage requirement. In 2023, a total of 183,820 temporary foreign worker permits took effect, marking an 88% increase from 2019. The upcoming wage increase is part of a larger effort to tighten eligibility rules and limit the number of temporary residents, including international students and foreign workers.
The recent change to the minimum hourly wage for temporary foreign workers is just one in a series of adjustments made by the government to restrict the influx of temporary residents. Previous measures include placing caps on the percentage of low-wage foreign workers in certain sectors and discontinuing permits in metropolitan areas with high unemployment rates. However, temporary foreign workers in the agriculture sector have not been affected by these past rule changes. The government’s approach to managing the Temporary Foreign Worker program reflects a broader strategy to prioritize the hiring of Canadian workers and address concerns about the impact of temporary residents on the local housing market and cost of living.
The increase in the minimum hourly wage for temporary foreign workers in the high-wage stream is intended to address criticisms of the program and encourage employers to prioritize hiring Canadian workers. The government has faced scrutiny for the rise in temporary residents entering Canada, which has been linked to housing shortages and a higher cost of living. By raising the required wage threshold for foreign workers, the government aims to ensure that employers consider the local workforce before seeking temporary residents. The changes to the LMIA program and the Temporary Foreign Worker program as a whole reflect ongoing efforts to manage the impact of temporary residents on the Canadian labour market and economy.
The federal government’s decision to increase the minimum hourly wage for temporary foreign workers in the high-wage stream is part of a broader strategy to tighten eligibility rules and limit the number of temporary residents entering Canada. This change is intended to encourage employers to prioritize hiring Canadian workers and address concerns about the impact of temporary residents on the local housing market and cost of living. While the government has faced criticism for the rise in temporary residents in recent years, the adjustments to the Temporary Foreign Worker program signal a commitment to managing the influx of foreign workers and ensuring that opportunities for employment are first offered to Canadian workers.
