Canada eases TFWP rules to fulfill labor shortages

Canada eases TFWP rules to fulfil labour shortages (1)

Canada has taken measures to invite temporary foreign workers to sort out the problem of labor shortage in Canada. The unemployment rate in Canada is low, and job vacancies have increased. Canada has planned to invite temporary foreign workers through the Temporary Foreign Worker Program. This invitation will help the country to build its workforce.

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  • Canada plans to hire 30 percent workforce through TWFP
  • TWFP rules will be relaxed
  • The announcement was made on April 4

Changes in rules for TWFP

  • The validity of LMIA has been increased from 9 months to 18 months. LMIA documents are used to let the Canadian government know that the employment of a foreign worker will not provide any negative impact on the labor market.
  • The duration of employment for Global Talent Stream workers and high-wage workers has been increased from two years to three years. This extension will also provide news ways of getting permanent residency.
  • Seasonal Cap Exemption will become permanent, and no limits will be placed on low-wage positions. The duration of low-wage positions has been increased from 180 days to 270 days.
  • Employers of the sectors who are facing labor shortage will have the option of hiring 30 percent of their workforce related to low-wage positions.
  • The policy of the refusal of LMIA applications for the low-wage occupations will automatically end.

The labor market in Canada was tight even before the pandemic. Job vacancies reached their highest peak in the third quarter of 2021. The following sectors had and still have labor shortage in 2021:


Industrial Sector  Vacancies
Hospitality 1,30,070
Health Care and Social Assistance 1,19,590
Sales and Marketing 1,03,990
Manufacturing 81,775


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