With the Labour Market Impact Assessment (LMIA) Low-Wage Stream set to close, many Canadian employers are left wondering if they can still hire foreign workers to meet their labour needs. The closure of this stream is a significant development in Canada’s labour and immigration policy, and it affects many industries that have relied on foreign workers to fill low-wage roles.

The good news is that the LMIA Low-Wage Stream closure does not mark the end of hiring foreign workers. There are still several viable pathways for employers to bring in foreign talent, though the process may require different strategies and compliance with alternative immigration programs.

In this blog, we’ll explore the options that remain for hiring foreign workers post-LMIA Low-Wage Stream closure, the potential challenges, and how employers can continue to meet their staffing needs in this new regulatory environment.

1. What the Closure of the LMIA Low-Wage Stream Means for Employers

The LMIA Low-Wage Stream has allowed Canadian businesses to hire foreign workers for positions that offer wages below the provincial or territorial median. It has been a critical component of the Temporary Foreign Worker Program (TFWP) for industries such as agriculture, hospitality, and retail, where labour shortages are common.

With the stream closing, businesses that have historically relied on this program will no longer be able to hire foreign workers for low-wage positions through this specific pathway. However, the closure is part of a broader effort by the Canadian government to prioritize domestic workers for available jobs and ensure that Canadian labour standards are upheld.

Employers must now explore alternative options for hiring foreign workers while adapting their hiring practices to comply with new regulations.

2. Yes, You Can Still Hire Foreign Workers—Here’s How

The closure of the LMIA Low-Wage Stream doesn’t mean that foreign worker recruitment is over. There are several alternative pathways and programs available for employers who need to bring in foreign workers to meet their labour demands. Here are some key options to consider:

a) LMIA High-Wage Stream

The LMIA High-Wage Stream remains a viable option for employers looking to hire foreign workers, but it requires that the wage offered meets or exceeds the provincial or territorial median wage. This stream is suitable for industries that can afford to pay higher wages to attract skilled foreign workers.

Employers applying under the High-Wage Stream must demonstrate that they have made genuine efforts to recruit Canadian citizens or permanent residents before offering the position to a foreign worker. The High-Wage Stream is an excellent alternative for businesses that need to hire foreign workers for roles requiring specialized skills or experience.

b) Temporary Foreign Worker Program (TFWP)

Even though the Low-Wage Stream is closing, the broader Temporary Foreign Worker Program (TFWP) is still available. This program allows employers to hire foreign workers for positions that cannot be filled by Canadians, but it comes with more stringent regulations.

Employers using the TFWP must adhere to specific requirements, including:

• Proving that efforts were made to hire Canadian workers

• Offering wages that meet or exceed the prevailing wage for the occupation

• Ensuring compliance with Canadian labour laws and standards

The TFWP is a useful option for businesses facing short-term labour shortages or seasonal work needs, particularly in industries like agriculture or tourism.

c) Global Talent Stream (GTS)

For employers in need of highly skilled workers, the Global Talent Stream (GTS) is a fast-track option that provides expedited processing times for bringing in foreign workers with specialized skills. The GTS is part of Canada’s Global Skills Strategy and is designed to help businesses access top-tier talent from around the world, particularly in industries such as technology, engineering, and science.

The Global Talent Stream offers processing times as fast as two weeks, making it an attractive option for employers who need to fill high-skill positions quickly. Employers must work with Employment and Social Development Canada (ESDC) to develop a Labour Market Benefits Plan, outlining how hiring foreign workers will positively impact the Canadian labour market.

d) Seasonal Agricultural Worker Program (SAWP)

For businesses in the agricultural sector, the Seasonal Agricultural Worker Program (SAWP) remains a viable option for hiring foreign workers on a temporary basis. The SAWP allows employers to hire foreign workers from specific countries for seasonal agricultural work.

This program is designed to address labour shortages during peak growing and harvesting seasons and has specific requirements for employers, such as providing transportation, housing, and medical insurance for workers. The SAWP continues to be a critical resource for agricultural employers post-LMIA Low-Wage Stream closure.

e) Provincial Nominee Programs (PNP)

Provincial Nominee Programs (PNPs) offer another pathway for employers seeking to hire foreign workers. PNPs allow provinces and territories to nominate individuals for permanent residency based on their skills and the labour market needs of the region.

Some PNP streams are specifically designed to address labour shortages in particular industries, making them a valuable option for employers in sectors like hospitality, agriculture, and construction. Employers interested in PNPs should explore the specific programs available in their province to determine whether they can be used to hire foreign workers in the absence of the LMIA Low-Wage Stream.

3. Challenges of Hiring Foreign Workers After LMIA Low-Wage Stream Closure

While there are still options available for hiring foreign workers, the closure of the LMIA Low-Wage Stream presents some challenges for employers, particularly those in industries that rely heavily on low-wage labour.

a) Rising Labour Costs

One of the biggest challenges employers will face post-closure is the potential for rising labour costs. Without access to the Low-Wage Stream, employers may need to increase wages to meet the requirements of alternative immigration streams, such as the High-Wage Stream or Provincial Nominee Programs.

Rising wages may impact the bottom line for businesses, especially those operating in industries where profit margins are tight. Employers will need to adjust their budgets and operations to accommodate these higher labour costs.

b) Increased Administrative Burden

Hiring foreign workers through alternative immigration programs can involve more complex processes and stricter compliance requirements. Employers may face an increased administrative burden as they navigate these new regulations, including the need for detailed recruitment efforts, compliance audits, and maintaining records of working conditions.

To manage this, employers may need to invest in legal or immigration consulting services to ensure that they remain compliant with all relevant regulations.

c) Labour Shortages in Low-Wage Positions

Industries that have relied on the LMIA Low-Wage Stream, such as agriculture, hospitality, and retail, may face significant labour shortages in low-wage positions. Domestic workers may not be willing to take on these roles, and the available alternatives for foreign workers may not fully address the demand.

Employers in these industries may need to explore alternative recruitment strategies, such as offering higher wages, improving working conditions, or investing in automation to reduce their reliance on manual labour.

4. Adapting to the New Labour Market: Best Practices for Employers

The closure of the LMIA Low-Wage Stream represents a significant shift in Canada’s labour market. To successfully adapt to this change, employers should consider the following best practices:

a) Invest in Domestic Recruitment

With the Canadian government prioritizing the hiring of domestic workers, employers should invest in domestic recruitment efforts. This may involve offering competitive wages, creating a positive work environment, and partnering with local employment agencies to source talent.

b) Explore Long-Term Workforce Planning

Employers should take a long-term approach to workforce planning, exploring immigration pathways that provide access to permanent foreign workers. Programs like the Provincial Nominee Programs and Express Entry can offer long-term staffing solutions by allowing foreign workers to gain permanent residency and remain in Canada.

c) Improve Compliance with Labour Laws

As Canada tightens regulations on foreign worker recruitment, it’s critical for employers to ensure that they are compliant with all relevant labour laws. This includes maintaining accurate records, offering fair wages, and adhering to workplace safety standards. Working with legal professionals or immigration consultants can help businesses navigate these requirements.

5. Conclusion: Navigating the Post-LMIA Low-Wage Stream Era

While the closure of the LMIA Low-Wage Stream may seem like a major setback for employers, it’s important to remember that there are still viable pathways for hiring foreign workers in Canada. Whether through the LMIA High-Wage Stream, Provincial Nominee Programs, or the Temporary Foreign Worker Program, businesses can continue to meet their labour needs while adapting to the new regulatory landscape.

Employers should take immediate steps to explore alternative hiring options, invest in domestic recruitment strategies, and ensure compliance with Canada’s evolving labour and immigration laws. Consulting with an immigration lawyer or employment specialist can help you navigate these changes and ensure that your business remains compliant and competitive in the labour market.