Immigration to Canada: understanding the new measures and their effects
Immigration to Canada: new measures and impacts
In recent weeks, numerous announcements have been made regarding immigration. Immetis provides an overview of the latest updates.
LOW-WAGE JOBS
Since September 26, 2024, low-wage jobs have been subject to significant restrictive measures across Canada. These measures also apply in the province of Quebec, for all occupations eligible under Quebec’s simplified process. For certain positions, it is no longer possible to submit a Labour Market Impact Assessment (LMIA) application.
The policy of refusing to process LMIA applications applies in all Census Metropolitan Areas (CMAs) where the unemployment rate exceeds 6.00%. Reference unemployment rates will be updated four times a year and can be consulted here. Since the policy came into effect, the CMAs of Montreal and Toronto are notably affected. However, the healthcare, construction, and food manufacturing sectors are exempt.
Employers may now hire only up to 10% of their total workforce in low-wage positions, whereas the limit was previously 20% in most industries. An exception is again granted for the healthcare, construction, and food manufacturing sectors.
The maximum duration of work permits issued following an LMIA/CAQ for workers hired under the low-wage stream has been reduced from 24 months to just 12 months.
INCREASE IN REFERENCE MEDIAN WAGE
Starting November 8, 2024, the median wage used to determine whether an LMIA should be submitted under the high-wage or low-wage stream will be increased by 20.00%. This represents a significant rise of $5 to $8 depending on the province.
In Quebec, all positions paying less than $32.96 (compared to $27.47 currently) will be considered low-wage as of November 8, 2024. In Ontario, the new reference median wage will be $34.07, up from $28.39. The LMIA processing suspension measures in CMAs with unemployment rates above 6.00% will therefore apply to these positions.
Additionally, starting October 28, employers will no longer be able to use a lawyer’s or accountant’s attestation to prove the legitimacy of their business.
Any company hiring temporary foreign workers should assess its workforce under work permits that may be affected by these changes, in order to anticipate renewals while they are still possible. This recommendation also applies to workers holding permits exempt from LMIA, who may need to go through an LMIA application to renew their work permit (e.g., Young Professionals).
These changes do not affect workers holding open work permits or those exempt from LMIA.
WORK PERMIT APPLICATIONS FOR VISITORS
On August 28, Immigration, Refugees and Citizenship Canada (IRCC) ended, with immediate effect, the public policy that allowed visitors to apply for a work permit from within Canada.
Until now, visitors in Canada could apply for a work permit without having to leave the country.
This policy was originally set to expire on February 28, 2025, but IRCC has ended it early. IRCC will continue to process applications submitted before August 28, 2024, under this policy.
If you have any questions about these measures, our professionals remain available at all times: info@immetis.com.
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