1. Introduction 

The Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, has announced a series of measures that have a significant impact on the Canadian labor market, particularly in relation to the increase in median wage.

2. The Canadian Labor Market 

The Canadian labor market is currently characterized by a series of substantial reforms, including the increase of provincial median wage thresholds, directly influencing the eligibility criteria for jobs within the Temporary Foreign Worker Program (TFWP).

3. Restrictive Measures and Policy Changes 

3.1 Immigration Levels Plan 2025-2027 

On October 24, 2024, the Honourable Marc Miller unveiled the immigration levels plan for 2025-2027, which anticipates a gradual reduction in the admissions of permanent residents:

• 395,000 in 2025,
• 380,000 in 2026,
• 365,000 in 2027.

This decision aims to control demographic growth while addressing concerns related to access to housing and public services. [1]

3.2 Reduction of Temporary Residents 

The federal government has also announced a reduction of 30,000 temporary residents, targeting a total of about 300,000 in 2025. This policy aims to alleviate pressure on housing and integration of newcomers. [2]

4. Changes to the Temporary Foreign Worker Program (TFWP) 

4.1 Increase in Median Wage 

Starting November 8, 2024, the government will implement a 20% increase in the median wage:

• Quebec: from $27.47/h to $32.96/h
• Ontario: from $28.39/h to $34.07/h [3]

This change leads to a reclassification of jobs into “High Wage” and “Low Wage” categories.

4.2 Restrictions on Employers 

Employers are required to prove the legitimacy of their business through official administrative data. Attestations from a lawyer or an accountant are no longer accepted. Automatic refusal of LMIA in Census Metropolitan Areas (CMA) where the unemployment rate exceeds 6% (except for sectoral exceptions).

5. Implications for Low and High Wage Brackets 

5.1 Low Wage Bracket 

Positions offering a salary below the median threshold will now be subject to stricter requirements:

• Limitation to 10% of the total workforce employed under the status of temporary foreign worker (TFW) (except for exceptions).
• Automatic refusal of LMIA in certain CMAs with high unemployment rates.
• Obligation for employers to provide suitable housing and fund round-trip transportation for the worker.

5.2 High Wage Bracket 

No limit on the percentage of foreign employees a company can recruit. No impact of regional unemployment rate on the granting of LMIAs.

6. Impacts on International Recruitment 

6.1 Increased Constraints for Employers 

Employers must now:

• Organize and fund the transportation and housing of foreign workers.
• Justify targeted recruitment of underrepresented groups (youth, women, Indigenous people, people with disabilities).

6.2 Reduction of Eligible Positions 

An estimated reduction of 20,000 positions approved under the TFWP is expected. Increased priority is given to local workers.

7. Conclusion and Legal Recommendations 

The adjustments made to the TFWP aim to enhance transparency and fairness while promoting the integration of Canadian workers. These measures, however, involve increased costs for employers and require strategic planning to minimize impacts on their operations.

Notes 

[1] The government of Canada reduces immigration – Canada.ca 

[2] Canada to cut immigration numbers, government source says | Reuters 

[3] Increase in median wage: what to note? – Canada.ca