Canada’s Temporary Foreign Workers -TFWP- in Numbers

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In 2014, more than 360,000 people had their temporary work permit take effect, a 64 per cent increase compared with 2004. An additional 212,000 international students had their study permit take effect, with many of them eligible to work in Canada temporarily.

Ahead of a major parliamentary committee report on the Temporary Foreign Worker Program (TFWP) set for release this month, a new report by Conference Board of Canada’s National Immigration Centre provides a comprehensive overview of the state of Canada’s foreign worker population.

The report, A Primer on Canada’s Foreign Workers, suggests that while Canada’s Temporary Foreign Worker Program population has declined in recent years, Canada’s overall foreign worker population is rising and may continue to increase.

“Workers entering Canada under the TFWP make up only a slice of Canada’s diverse foreign worker population, which includes International Mobility Program workers, international students, those awaiting permanent residence in Canada, and refugee claimants. All these individuals are able to work in Canada on a temporary basis,” said Michael Bloom, Vice-President, Industry and Business Strategy, The Conference Board of Canada. “Ensuring that foreign worker programs benefit Canada is a matter of reconciling the needs of federal, provincial, and territorial governments, industry, and Canadians and foreign workers.”

Highlights

  • In 2014, more than 360,000 people had their temporary work permit take effect, a 64 per cent increase compared with 2004. An additional 212,000 international students had their study permit take effect, with many of them eligible to work in Canada temporarily.
  • The TFWP accounted for one-quarter of individuals who were granted a temporary work permit in 2014.
  • Canada could see its foreign worker population continue to rise as a result of more international students entering the country and recently negotiated free trade agreements.

In 2014, more than 360,000 people had their temporary work permit take effect, a 64 per cent increase compared with 2004. Most temporary work permits signed between 2004 and 2014 were exempt from a Labour Market Impact Assessment (LMIA), the test used by the federal government to determine what effect the hiring of a foreign national might have on the Canadian labour market. The number of TFWP permits signed has declined over the past two years likely due to a combination of Canada’s economic conditions and TFWP policy reforms.

TFWP accounted for only 26 per cent of individuals who were granted a temporary work permit in 2014. Despite possible reforms to the TFWP, Canada could still see its overall foreign worker population increase in the future due to rising levels of international students arriving to Canada. International students make up a significant share of foreign workers eligible to participate in the Canadian labour market. In 2014, close to 212,000 international students had their study permit signed compared with just over 126,000 in 2004. This number could increase further as federal, provincial, and territorial governments encourage more foreign nationals to study in Canada.

Recently negotiated free trade agreements by Canada could also up the number of foreign nationals eligible to work in Canada under the International Mobility Program, which does not have LMIA requirements. The Canada and European Union (EU) Comprehensive Economic and Trade Agreement (CETA), and the Trans-Pacific Partnership (TPP) both contain labour mobility provisions. If ratified, they could result in more Canadians working abroad, and more foreign workers arriving to Canada.

“Balance is the key to a well-designed and well-executed TFWP,” said Dr. Bloom. “The government has a legitimate role to monitor the TFWP to ensure domestic workers are given priority in the labour market. Employers across Canada would like enough flexibility to fill their temporary employment needs when domestic workers are unavailable to do the job. The Canadian public wants assurance that foreign workers are supplementing, rather than supplanting domestic workers. And protections must be in place to ensure temporary foreign workers are treated fairly by employers.”

The report also highlights the need for more complete information on the Canadian labour market to support evidence-based policy decisions on Canada’s foreign worker programs. While certain sectors, such as agriculture, face genuine labour shortages, as shown by federal government data, and require TFWs to fill labour market vacancies, it is difficult to determine whether other sectors are facing similar labour shortages due to limitations in Canada’s labour market data.

Temporary Foreign Worker Program Overhaul: What Workers Need to Know

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On June 20, 2014, the Government of Canada announced major changes to the Temporary Foreign Worker Program (TFWP). These changes have significant repercussions for Canadian employers across the country as well as current and future foreign workers.
The recent TFWP overhaul affects Canadian employers. Of course, many of these changes also have a significant impact on how foreign workers obtain their work permits, as well as what will happen during and after arrival in Canada.
Following is detail of the most important changes and what they mean for current and future foreign workers in Canada.

Labour Market Impact Assessments (LMIAs)

In most cases, Canadian employers need to obtain government approval before hiring a foreign worker. This approval comes in the form of a Labour Market Impact Assessment (LMIA), formerly known as a Labour Market Opinion (LMO).
In the eyes of the government, the responsibility for securing an LMIA rests solely with the employer in Canada. The LMIA process assesses whether the employer is eligible to hire from abroad.
If you are a foreign worker who has received a job offer in Canada, especially from a small or medium sized employer, you should be prepared for the employer to possibly question whether they want to go through this process at all.

LMIA-Based Work Permit Restrictions

In addition to increased LMIA requirements, there are now new time limits placed on work permits that require LMIAs. Individuals whose Canadian job offers are considered ‘low-wage’ under the new LMIA system (that is, individuals who will be paid less than the provincial median wage) will be issued work permits valid for no longer than one year in length. In addition, low-wage applications that were submitted before June 20, 2014 will not be processed. They will be returned with a refund of government processing fees. Employers are welcome to re-apply following the new rules for low-wage LMIAs.
The government has also implied that the maximum work permit length for ‘high-wage’ workers, who are paid a salary that meets or exceeds provincial median wages, will also be reduced. It has been reported that the maximum length will be cut to two years, although this has yet to be formally implemented.
Options remain in place to renew work permits that are set to expire, as well as to transition from temporary worker status to permanent resident status.
Moratorium Lifted for Food Service Work Permits
On April 24, 2014, the government announced a moratorium on LMIA and work permit issuances for certain occupations in the food services sector. As ofJune 20, this moratorium has been lifted and workers in the food sector may once again apply for work authorization.

LMIA-Exempt Work Permits

Work permits that do not require LMIA approval are now known as ‘International Mobility Programs’.
Certain work permits are LMIA-exempt but remain tied to a specific employer. These sorts of permits most commonly pertain to individuals applying under the NAFTA Program and the Intra-Company Transfer Program.
Currently, individuals are able to apply for their LMIA-exempt work permit once they obtain a job offer from a Canadian employer. In the future (date unknown), Canadian employers will be required to submit their job offers for approval to Citizenship and Immigration Canada before the foreign worker can apply for the work permit. Employers will be required to pay a $230 processing fee to have their job offer evaluated.
The foreign worker must still pay the standard $155 work permit application fee when submitting an application.

Open Work Permit Fees

In the future (date unknown), recipients of Open Work Permits will be required to pay a $100 ‘privilege fee’ in addition to the standard application fee of $155. Individuals who are eligible for open work permits include the spouses of foreign workers and students in Canada as well as participants in certain work exchange programs.
All new fees will help to cover government services such as work permit processing and employer compliance inspections.

Working in Canada Today

It is important to note that individuals who are currently in Canada on a work permit will not see any changes made to their current permits. However, any requests to renew or extend their work permits will be subject to the new rules.

Changes Made to Canada’s Temporary Foreign Worker Program

HRSDC Minister Diane Finley speaking in the House of Commons last September. New rules and increased fees for work permit applications were announced by Finley and Citizenship and Immigration Minister Jason Kenney on Monday (Government of Canada)

Amid controversy and criticism over a series of incidents involving temporary foreign workers (TFWs) in recent months, including a story that emerged last month of Canadian workers losing their jobs to foreign workers at the Royal Canadian Bank, the federal government has announced several immediate and upcoming changes to the Temporary Foreign Worker Program (TFWP).

These changes are:

  • An employer is required to guarantee to pay a TFW prevailing wages for that foreign worker to be eligible for a work permit, effective immediately. The rule allowing companies to pay TFWs 15 percent less than prevailing wages for high-skilled positions, and 5 percent less for low skilled ones has been repealed.
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  • The Accelerated Labour Market Opinion (ALMO) has been suspended, effective immediately.
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  • The federal government is seeking the authority to suspend a Labour Market Opinion (LMO) if new information emerges showing that it negatively affects the Canadian economy and Canadian workers, and revoke work permits that were authorized by that LMO.
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  • Fees employers pay for work permit and LMO applications will increase so that a portion of the cost of processing them will no longer have to be paid out of general taxes.
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  • Job requirements for positions that use TFWs can only have English or French as required languages, unless an employer receives a special exemption after having shown Human Resources and Skills Development Canada (HRSDC) why the foreign language is necessary for the position.

The new rules attempt to close some of the major loopholes that critics have identified in the program that they say allow Canadian companies to use foreign workers instead of available Canadian workers.

The changes were jointly announced by HRSDC Minister Diane Finley and Citizenship and Immigration Minister Jason Kenney on Monday.

Illegal Immigration in Canada Expected to Surge in 2015

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Over 190,000 temporary foreign workers entered Canada last year. Many of those whose work permits are set to expire in April 2015 are expected to remain in Canada illegally (CICS News)

The number of people in Canada illegally is expected to increase substantially in April 2015, when a large contingent of foreign workers see their work permits expire.

Their work permits will expire on April 1st 2015 because of a rule enacted on April 1st, 2011, that created a four year limit on cumulative time a foreign national can spend in Canada as a temporary foreign worker.

The rule change was made to reduce the perceived over-dependence of Canadian employers on the Temporary Foreign Worker Program (TFWP) to meet their permanent labour needs.

The number of temporary foreign workers in Canada has increased from approximately 100,000 in 2002, to over 300,000 today, which some have criticized as a subsidy for business at the expense of Canadian workers.

Setting limits on how long a temporary foreign worker can work in Canada was seen as a way to limit the use of the TFWP to its intended role: to temporarily meet labour shortages until a permanent solution could be found.

People familiar with visa and immigration controls expect a significant percentage of those whose permits will expire on April 1st 2015 to over-stay their visa and reside in Canada illegally, leaving Canada with a problem that Americans are more familiar with: a sizeable illegal immigrant population.

The immigrant magnets of Vancouver, Montreal and Toronto are expected to host the majority of those illegal migrants, which will likely put pressure on their infrastructure, public transit and policing resources, which are already being strained by rapid population growth.

Costs vs Generosity

Canadians are a generally generous people, who don’t like deporting individuals whose only crime is to stay in a country that affords them a better quality of life, but that generosity has to contend with the reality that unskilled foreign workers represent an economic cost for Canada.

Each additional person living in Canada comes with additional set costs in government spending, that can only be compensated if the person pays taxes that are at the Canadian average – something low-wage unskilled workers do not.

Allowing any of the literally hundreds of millions of people who would choose to immigrate and work in Canada if they could, to do so, would, in real terms, result in skyrocketing government spending levels and lower wages / higher unemployment rates for less skilled Canadians who would have to compete with the entrants in the labour market.

This means that immigration controls, and their integrity, are important for the economic well-being of Canada. Nevertheless, an extensive policing campaign that deports thousands of illegal immigrants, many of them living as families in Canada, would spark public outrage and would also be logistically difficult.

How Canada deals with the surge in the illegal immigrant population in 2015 remains to be seen.