Canadian government announces upcoming changes to Temporary Residence Programs in an effort to manage volumes

September 20, 2024

On September 18, 2024, in response to changing economic needs and labour market conditions, as well as discussions surrounding the integrity and sustainability of Canada's immigration system, the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, announced additional measures aimed at managing the number of temporary residents in Canada (reduction from 6.5% to 5% of Canada's population by 2026), upholding the integrity of the immigration system, protecting vulnerable people, mitigating fraud and ensuring program compliance is strictly enforced. These additional measures include changes to Open Spousal Work Permit (OSWP) and Post-Graduation Work Permit (PGWP) Program eligibility as well as Study Permit intake caps for 2025 and 2026.

An announcement was also made on September 18, 2024, by the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, building on his August 26, 2024, announcement pertaining to reform of the Temporary Foreign Worker Program (TFWP) that handles Labour Market Impact Assessments (LMIAs).

Key updates:

Temporary Residence Program

• Limiting open work permit eligibility, later this year, to spouses of foreign workers in management or professional occupations (such as C-suite executives, engineers, scientists, lawyers, professors and technicians) or occupations in sectors with labour shortages, under both the TFWP and the International Mobility Program (IMP).
• Limiting open work permit eligibility, later this year, to spouses of master's degree students whose programs are at least 16 months in duration (Spouses of undergraduate degree students are no longer eligible for open work permits starting March 19, 2024).
• Reforming the PGWP Program-upcoming changes include:
  • As of November 1, 2024, all PGWP applicants must submit proof of language proficiency (IRCC-approved language test). University graduates must score at least Canadian Language Benchmark (CLB) 7 and college graduates must score at least CLB 5.
  • As of November 1, 2024, graduates of public colleges will be eligible for a PGWP of up to three years only if they have graduated from a field of study related to an occupation with a labour market shortage. Bachelor's, master's or doctoral degree graduates, however, will continue to be eligible for PGWPs valid for up to three years.
• Reducing the intake cap on international student study permits to 437,000 in 2025 (a 10% decrease from 485,000 in 2024).
• All study permit applicants (post-secondary studies, including master's and doctoral programs) will be required to submit a provincial attestation letter.

Temporary Foreign Worker Program (Low-Wage Stream)-effective September 26, 2024

• 10% employer cap on temporary foreign workers under the Low-Wage Stream, including Traitement Simplifié (Québec) occupations (exceptions for healthcare, construction and food processing sector occupations).
• Approved Low-Wage Stream LMIAs will be limited to a work duration of a maximum of one year, including those processed under Traitement Simplifié (exceptions for Primary Agriculture Stream occupations).
• Refusal to process policy for LMIA applications under the Low-Wage Stream will apply to all Metropolitan Areas with an unemployment rate of 6% or higher (exceptions for positions in healthcare, construction, and food processing sectors).

Further updates will be made to these changes within the coming weeks. Additionally, the Canadian government has announced that, within the next 90 days, additional reviews of the Temporary Foreign Worker Program will be undertaken, including a review of its High-Wage Stream.

These changes may have significant impacts on temporary foreign workers and employers who rely on these programs. For more information or any questions related to the implications of these changes on your business, please contact the authors, Helen Park or Denise Alba.