Canada proposes extending low-wage temporary foreign worker permits to two years

Canada's federal government announced plans to extend the maximum duration of a low-wage Labour Market Impact Assessment (LMIA) from one year to two years, allowing businesses to employ low-wage temporary foreign workers for a longer period.

The existing restriction that bars hiring temporary foreign workers in cities where the unemployment rate exceeds six per cent will remain, but early childhood educators are being added to the list of occupations exempt from the rule, joining certain health-care, construction and food-processing jobs.

The proposals, slated to take effect on March 1, 2027, require provinces and territories to opt in. They would also let provincial and territorial governments add or remove occupations from the exemption list and raise the permissible share of low-wage temporary foreign workers in a workforce from 10 per cent to 15 per cent.

"I have heard also loud and clear from many people across the country, no matter who they are, that there is a need for that program," Immigration Minister Lena Diab said at a press conference in Stellarton, Nova Scotia.

"But we do recognize that we also need the skilled trades and the skilled people that have different skills than what we have in Canada, but also there are regions in the country that do not have the Canadians applying," Diab added.

"The percentages that you raise will be up to the provinces and territories to say yes or no. This is again working in partnership with the provinces in territories who will decide whether that is the right thing to do for their provinces, and if so, where in the regions," she said.

Diab also announced that the Rural Community Immigration Pilot, which connects vetted rural employers with skilled foreign workers and provides a pathway to permanent residency, will become a permanent program. The pilot currently supports more than 1,950 employers in 14 rural communities and allocates about 5,500 permanent-residency slots under the latest immigration levels plan.

The reforms were referenced in the federal budget, though officials said detailed information was not yet available. Conservative leader Pierre Poilievre responded by urging that the temporary foreign worker program not be used in communities where unemployment exceeds 5.5 per cent. Statistics Canada reported a national unemployment rate of 6.7 per cent in October, with rates fluctuating between roughly 6.5 and 7 per cent over the past two years.