Canada's Changing Landscape of Work Permits: What You Need to Know

**As of September 2024, significant changes to Canada's work permit regulations are in effect, particularly impacting the Temporary Foreign Worker Program (TFWP) and Post-Graduation Work Permit (PGWP) pathways. The government aims to manage the increasing number of temporary residents while addressing labor market needs effectively.

1. Key Changes to the Temporary Foreign Worker Program:
Effective September 26, 2024, employers in Canada will face stricter regulations for hiring through the TFWP, especially in metropolitan areas where unemployment rates are high (6% or more). Key adjustments include:

• Refusal to process Labour Market Impact Assessments (LMIAs) for low-wage jobs in regions with elevated unemployment rates.
• A limit on the percentage of employees that can be hired from the TFWP, capped at 10% of the total workforce, down from 20%.
• The maximum employment duration for low-wage workers will now be one year, reduced from two years, with exceptions for critical sectors like agriculture and healthcare​(
  Mathews Dinsdale & Clark LLP
  )​(
  Northern Connections Canada Immigration
  ).

2. New Measures for Post-Graduation Work Permits (PGWP):
Starting November 1, 2024, language proficiency requirements will be implemented, necessitating a Canadian Language Benchmark (CLB) score of 7 for university graduates and CLB 5 for college graduates to qualify for PGWP. This program allows graduates to work in Canada post-study for up to three years, but only if they have studied in fields related to long-term labor shortages​(

).

3. Study Permit Caps and Restrictions:
For the year 2025, Canada will issue a capped number of study permits, reducing from 485,000 in 2024 to 437,000. This change is expected to stabilize immigration numbers and ensure genuine applications through the introduction of a Provincial Attestation Letter (PAL) requirement for master's and doctoral students​(

).

4. Spousal Work Permit Changes:
There will be new limitations on Spousal Open Work Permits, reducing eligibility to spouses of students in specific long-duration programs and highly skilled workers in critical sectors​(

).

5. Implications for Employers and Workers:
Employers must adapt to these changes by reassessing their hiring strategies, particularly in light of the new LMIA processing rules. The government emphasizes that the TFWP should not replace Canadian workers but should fill genuine labor shortages​(

)​(

Northern Connections Canada Immigration

).

In summary, these new regulations reflect Canada's commitment to prioritizing its labor market needs while managing the influx of temporary residents. Employers and prospective workers must stay informed to navigate these changes effectively.