Last Updated On 11 November 2024, 9:12 AM EST (Toronto Time)
In a significant update for employers seeking to hire foreign talent, Canada has set new wage thresholds for its Labour Market Impact Assessment (LMIA) program effective November 8, 2024.
This change affects employers in all Canadian provinces and territories, altering the minimum wage criteria used to determine whether a foreign worker’s job falls under the high-wage or low-wage stream of the Temporary Foreign Worker Program (TFWP).
This increase in wage thresholds reflects Canada’s commitment to fair employment practices, responding to inflation and the evolving economic landscape.
The new wage thresholds by province and territory represent a 20% increase over the current rates, which may impact the recruitment processes for numerous businesses across various sectors.
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Canada’s Temporary Foreign Worker Program allows employers to hire foreign workers in areas where qualified Canadians are unavailable.
However, employers must undergo a Labour Market Impact Assessment (LMIA) to assess the impact of hiring a temporary foreign worker (TFW) on Canada’s job market.
This LMIA process includes two main streams:
- High-Wage Stream: For jobs offering wages at or above the provincial or territorial threshold.
- Low-Wage Stream: For jobs offering wages below the provincial or territorial threshold.
Effective November 8, the wage threshold to determine whether an LMIA application falls under the high-wage or low-wage stream has increased by 20% across all provinces and territories.
Employers will now need to ensure that their wage offerings align with the updated thresholds when hiring TFWs.
The updated wage thresholds for each province and territory are detailed below:
| Province/territory | For LMIA application before November 8, 2024 | For LMIA applications effective November 8, 2024 |
|---|---|---|
| Alberta | $29.50 | $35.40 |
| British Columbia | $28.85 | $34.62 |
| Manitoba | $25.00 | $30.00 |
| New Brunswick | $24.04 | $28.85 |
| Newfoundland and Labrador | $26.00 | $31.20 |
| Northwest Territories | $39.24 | $47.09 |
| Nova Scotia | $24.00 | $28.80 |
| Nunavut | $35.00 | $42.00 |
| Ontario | $28.39 | $34.07 |
| Prince Edward Island | $24.00 | $28.80 |
| Quebec | $27.47 | $32.96 |
| Saskatchewan | $27.00 | $32.40 |
| Yukon | $36.00 | $43.20 |
Here’s a closer look at some of the most notable changes for specific regions and their implications for the local job market:
- Alberta: The wage threshold has increased from $29.50 to $35.40. Alberta, with a high demand for skilled workers in energy, technology, and construction, may see an impact on employers’ hiring practices as they adapt to this new requirement.
- British Columbia: Employers in BC will now need to offer a minimum wage of $34.62 for high-wage positions, compared to the previous $28.85. This increase aligns with the province’s rising living costs and aims to attract skilled foreign workers in technology, healthcare, and service industries.
- Ontario: With the wage threshold moving from $28.39 to $34.07, Ontario’s businesses in urban centres such as Toronto, Ottawa, and Hamilton may feel the pressure to match competitive wages for high-demand jobs in IT, healthcare, and finance.
- Quebec: In Quebec, the threshold has risen from $27.47 to $32.96, potentially influencing employers in the manufacturing, hospitality, and service sectors. Quebec’s focus on attracting French-speaking talent also adds a layer of competition for high-wage positions in the province.
- Saskatchewan and Manitoba: These provinces, with economies rooted in agriculture and natural resources, will now have thresholds increased to $32.40 and $30.00, respectively. Employers here may need to adjust pay scales, particularly for roles in agriculture, mining, and logistics.
The new wage thresholds aim to ensure that foreign workers receive competitive pay aligned with the local labour market.
Here’s how the changes could affect employers and TFWs:
Impact on Employers
- Budgeting and Wage Adjustments: Employers must reassess their budgeting for positions requiring foreign talent.
- With wage thresholds increased by 20%, some businesses may need to adjust their offered wages to meet the high-wage stream requirements.
- Streamlining LMIA Applications: Applications under the high-wage stream are generally subject to different requirements compared to the low-wage stream, such as training and transition plans to hire or train Canadians over time.
- Employers who previously offered wages slightly below the old high-wage threshold may now qualify for the high-wage stream if they adjust wages in line with the new thresholds.
- Sector-Specific Considerations: Industries such as agriculture, hospitality, construction, and retail, where TFWs are often essential, may face increased operational costs due to the higher wage requirements.
- In some regions, businesses reliant on low-wage foreign labour may need to reconsider their hiring and wage strategies.
The new wage thresholds reflect Canada’s efforts to ensure that foreign workers receive wages consistent with the local cost of living and economic trends.
Foreign workers employed under the TFWP will have access to higher wages, which can improve their integration into Canadian society and support their transition into permanent residence pathways if desired.
For foreign workers eyeing opportunities in Canada, these wage increases mean they are likely to receive competitive pay compared to Canadian workers.
Furthermore, those earning higher wages may find it easier to qualify for economic immigration programs that prioritize high-wage employment.
The updated LMIA wage thresholds, effective November 8, 2024, mark a shift in Canada’s approach to foreign labour.
Employers must now account for higher wage benchmarks to attract and retain temporary foreign workers, especially in sectors with acute labour shortages.
These changes ultimately contribute to a balanced labour market, where foreign workers are fairly compensated while employers continue to access the talent they need.
As Canada continues to refine its immigration and labour policies, the new wage thresholds under the TFWP serve as an important step towards a more inclusive and economically aligned workforce.
For employers and TFWs alike, staying informed and proactive will be key in navigating these adjustments and ensuring compliance with Canada’s evolving employment standards.
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