Updated May 8, 2024.

Canada’s labour and skills shortage continues – and so does the immigration solution. Canada’s ambitious immigration plan targets 485,000 new permanent residents in 2024, 500,000 in 2025 and 500,000 in 2026. By 2036, the Canadian government estimates immigrants will represent up to 30% of Canada’s population. Recognizing Canada’s immigration funnel must expand to increase the flow of foreign workers to the employers that need them – but also that foreign workers and future workers require protection – the federal government announced and implemented many changes to Canada’s Immigration programs in 2023. Here are five key ones.

1. Sector-Specific Invitations to Apply 

In May 2023, the government announced Immigration, Refugees and Citizenship Canada (IRCC) would hold category-based draws to invite immigration candidates to apply for permanent residency via Canada’s Express Entry system targeting key in-demand occupations – good news for Canadian employers searching for specific talent. Since June 2023, IRCC held category-based draws for:

• Healthcare occupations.
• Science, Technology, Engineering and Math (STEM) occupations.
• Trade occupations.
• Transport occupations.
• Agriculture and agri-food occupations.
• French-language proficiency.

 2. Targeting Tech Talent

Announced June 27, 2023, Canada’s first Tech Talent Strategy is designed to attract tech talent to “fuel innovation and drive emerging technologies forward”. The Strategy targets foreign entrepreneurs and tech workers to help solve Canada’s critical shortage of skilled tech workers and drive innovation in Canda. However, the new International Mobility Program (IMP) Innovation Stream that was to be launched by the end of 2023 hasn’t yet materialized. 

3. Insulating International Students

The government announced several measures in 2023 to protect international students – but that also carry implications for employers and for Designated Learning Institutions (DLIs), including:

Working Hours Cap. The temporary waiver on the 20 hour/week cap on the number of hours international students can work off campus while class is in session was set to expire on December 31, 2023. Both employers and international students raised concerns about the impact. On December 7, 2023, the government extended the working hours cap waiver provided certain conditions are met, to April 30, 2024. The waiver extension helped both students trying to make ends meet in Canada and the Canadian employers that have come to rely on them to plug labour gaps. The waiver expired on April 30, 2024 and was not extended, so the cap reverted to 20 hours/week. However, there is some indication the cap could increase to 24 hours/week in Fall 2024.

Designated Learning Institution Diligence. On October 27, 2023, the government announced that starting December 1, 2023, DLIs must confirm every letter of acceptance they issue directly with IRCC to protect students from fraud. The government also announced the development of a new framework to recognize learning institutions that provide top-quality services and support, including housing, to international students. Study permit applicants attending a recognized DLI will benefit from priority processing of their applications.

Higher Settlement Funds. On December 7, 2023 the government  also announced that beginning January 1, 2024, the cost-of-living threshold for new study permit applications received on or after January 1 will be raised to $20,635, in addition to their first year of tuition and travel costs. It will subsequently be adjusted annually when Statistics Canada updates the low-income cut-off (LICO). The intent is to better prepare international students for the financial realities in Canada.

4. Easing Employers’ Burden

Several changes focused on streamlining existing processes for employers seeking to recruit international talent, including: 

Fast-tracked Philippines. In October 2023 Canada launched CAN Work Philippines, an employer-driven pilot program for eligible Canadian employers recruiting from the Philippines and hiring either approximately 50 or more workers or hiring them for ‘critical’ occupations (for example health care, construction and agri-food. The program streamlines work permit processing and allows employers to schedule group appointments for medical examinations and biometrics for potential employees. Employers must demonstrate their commitment to the International Organization for Migration (IOM) fair and ethical recruitment guidelines. 

Rewarding Regular Employers. In 2023 Employment and Social Development Canada (ESDC)  also introduced the Recognized Employer Pilot for employers that regularly access the Temporary Foreign Work Program (TFWP) for specified jobs in in-demand fields and “meet the highest standards for working and living conditions and worker protection.” The Pilot rolls out in two phases over three years. Phase 1 kicked off on September 12, 2023 by accepting applications for positions on the Phase 1 REP occupations list. Phase 2 kicks off in January 2024. “Recognized employers” benefit from positive Labour Market Impact Assessment (LMIA) validity for up to three years and access to a simplified LMIA application when hiring additional workers – changes beneficial to employers given the standard LMIA validity period of 18 months (aside from the current temporary reduction to 12 months implemented on October 31, 2023) and the time and cost typically associated with an LMIA application.

5. Increasing Employers’ Burden

Employers that hire a Temporary Foreign Worker in Canada must comply with immigration laws, or both it and the Worker could face significant  compliance enforcement mechanisms. Some 2023 changes will increase the compliance burden on employers, specifically those hiring workers under the Temporary Foreign Worker Program (TFWP): 

Use Your LMIA or Lose It. Employers of Temporary Foreign Workers must comply with the immigration law rules and processes, including those related to Labour Market Impact Assessments (LMIAs). Effective October 31, 2023, the validity period for LMIAs issued under the TFWP has been reduced from 18 months to 12 months, until August 30, 2024. This change applies to all components of the TFWP across all provinces and territories, with the sole exception of the Seasonal Agricultural Worker Program (SAWP). This means a foreign worker must apply for a work permit within 12 months from the date the LMIA is issued to the employer or the LMIA is no longer valid – and the employer must apply for a new LMIA. The change is apparently intended to reflect the current labour market and to ensure Canadian employers hire foreign workers only when necessary. However, it means employers could be required to submit more LMIA applications – a process that can be costly both in terms of time and money.

Annual Wage Review. Employers’ compliance obligations don’t end once they’ve hired a foreign worker. In October 2023, ESDC announced a new ongoing compliance requirement effective January 1, 2024: employers must annually review their Temporary Foreign Worker employees’ wages to ensure they align with the prevailing wage rate for their occupation and region of work. Certainly, this offers temporary foreign workers greater protection though it adds to employers’ compliance burden.

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Please contact your McInnes Cooper lawyer or any member of our Business Immigration Team @ McInnes Cooper to discuss how we can help you access the foreign workers you need.