Many industries in Canada face a common challenge: there is often a high demand for work but a limited supply of local talent. This can be due to regional skill shortages, wage expectations, or the nature of certain tasks. In such cases, Canadian employers may consider the Temporary Foreign Worker Program, which allows hiring qualified temporary foreign workers from abroad to fill roles in sectors experiencing labour shortages. Learn more about finding good employees in Canada.
Why employers hire temporary foreign workers
Employers may turn to temporary foreign workers when there is a shortage of skilled labour. Certain sectors, such as manufacturing or technology, require specialized skills that may not be readily available within a region. Employers may search more broadly across Canada but still face gaps, leading to the use of temporary foreign workers.
Other sectors, including agriculture and food processing, often involve seasonal work, long hours, physically demanding tasks, and lower pay, which can be challenging for local workers. Temporary foreign workers help fill these positions, supporting essential operations such as food production and processing, keeping grocery shelves stocked.
Guidelines for the program suggest that employers consider Canadian talent before recruiting temporary foreign workers, in line with government recommendations.
How hiring temporary foreign workers works
Participation in the Temporary Foreign Worker Program generally involves completing a Labour Market Impact Assessment (LMIA). This government-administered process evaluates potential effects on the local labour market. Employers are expected to follow program rules regarding job requirements, wages, and recruitment advertising. When a candidate meets the program criteria, a work permit is arranged according to official guidelines.
Temporary work permits
Temporary foreign workers in Canada usually stay for the duration specified by their work permit. They are not Canadian citizens, and eligibility for programs such as Employment Insurance, CPP, or WSIB may differ from permanent residents. Upon permit expiry or employment changes, immigration regulations may require returning to their home country or applying for a new permit through the appropriate channels. If a candidate has an ideal profile and both employer and worker wish to continue the employment relationship, program guidance provides options to request a work permit extension.
Understanding employee streams
As of 2022, there are four streams under which employers may hire temporary foreign workers:
- a high-wage stream;
- a low-wage stream;
- a primary agriculture stream, including the Seasonal Agricultural Workers Program;
- a stream that may facilitate eventual permanent residency.
High-wage stream
Positions that pay at or above the provincial median hourly wage are generally categorized under the high-wage stream. These roles often require specialized skills or may be located in rural or remote areas. Employers can consult official government guidance to determine application requirements.
Low-wage stream
Positions paying below the provincial median hourly wage are typically classified under the low-wage stream. These jobs are often seasonal or do not require specialized skills. Official program guidance provides details on the appropriate process.
Primary agriculture stream
The primary agriculture stream is designed to support roles such as produce pickers and animal handlers. Employers may recruit from designated countries, including Jamaica, Mexico, and other Caribbean nations, to address labour shortages in rural or remote agricultural regions.
Permanent residency stream
The permanent residency stream allows temporary foreign workers to apply for Permanent Residency while employed. Programs under this stream include:
- Federal Skilled Worker Program: Offers permanent employment opportunities, with the federal government evaluating both the job and the worker’s qualifications, such as education, experience, and language proficiency.
- Provincial Nominee Program: Enables employers to nominate and sponsor foreign workers, usually with specialized skills, depending on provincial regulations.
Each stream has specific criteria and processes. Employers are encouraged to consult official program documentation and guidance to ensure alignment with requirements and best practices.
