Major Changes to Canada's Temporary Worker Program in 2024 and Beyond

Before you can work in Canada, your potential employer needs to obtain a Labour Market Impact Assessment (LMIA). This document is crucial and acts as a “labor market opinion” issued by Employment and Social Development Canada (ESDC).

What does an LMIA do? It essentially allows your employer to hire a foreign worker for a specific, confirmed, and legitimate job in Canada. The LMIA process ensures that hiring a foreign worker is necessary and beneficial to the Canadian economy.

In simple terms, the LMIA process checks that:

• There are not enough qualified Canadians or permanent residents available for the job.
• Hiring a foreign worker will not negatively impact Canadian wages or working conditions.

This is a crucial step in the immigration process, and it’s important to understand its role in your journey to Canada.

What Does “Low-Wage” Mean in Canada?

In Canada, “low-wage” generally refers to any hourly wage that falls below the median hourly wage for a specific region or industry.

Here’s the key takeaway: The definition of low-wage isn’t fixed. It depends heavily on the cost of living in different parts of Canada.

To put it simply: If you’re earning significantly less than the average or median wage for your profession in your region, you’re likely considered to be in a low-wage position.

Why is this important? Understanding low-wage classifications can help you evaluate job opportunities, assess your earning potential, and potentially advocate for higher wages.

Navigating Canadian Job Classifications: NOC and TEER

Have you heard the terms NOC and TEER? These are important classifications used in Canada to categorize skills and occupations.

The National Occupational Classification (NOC) system is used by Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC) to organize jobs within the Canadian labor market. This system helps to define and standardize job titles and responsibilities.

In 2021, the NOC was updated to a new version called TEER (The Employment and Economic Classification of Occupations in Canada). While the new TEER system is in place, the previous classification (NOC 2016) is still commonly referenced.

Why are NOC and TEER important?

• Immigration: IRCC uses NOC and TEER to assess the skills and qualifications of potential immigrants.
• Job Searching: Understanding the NOC/TEER classification for your profession helps you find relevant job postings and understand the competitive landscape.
• Education and Training: These classifications can help you determine which educational pathways are most relevant to your career goals.

We’ll explore the specific details of NOC and TEER in upcoming blog posts, helping you navigate these important classifications in the Canadian job market.

Understanding the NOC 2016 Skill Levels:

The NOC 2016 system categorizes occupations into five skill levels, reflecting the educational requirements and complexity of the work. Here’s a breakdown:

NOC 0: Management Jobs

These roles involve planning, directing, and coordinating the work of others. They often require significant experience and leadership skills.

• Examples: Restaurant Managers, Mine Managers, Shore Captains (fishing)

NOC A: Professional Jobs

These occupations typically require a university degree and advanced knowledge in a specific field.

• Examples: Doctors, Dentists, Architects, Nurses

NOC B: Technical Jobs and Skilled Trades

These jobs typically require a college diploma or apprenticeship training, along with hands-on skills.

• Examples: Supervisors, Chefs, Plumbers, Electricians

NOC C: Intermediate Jobs

These roles often require a high school diploma and/or job-specific training.

• Examples: Long-haul Truck Drivers, Food and Beverage Servers

NOC D: Labour Jobs

These occupations typically involve on-the-job training and may not require formal qualifications.

• Examples: Cleaning Staff, Food Counter Attendants, Farmers, Fishplant workers

Navigating the NOC 2016 Skill Levels

Understanding the NOC 2016 skill levels can help you:

• Find relevant job postings: Use the NOC code to filter your job search.
• Assess your skills: Determine your skill level and identify potential career paths.
• Evaluate your educational needs: Understand the qualifications required for your desired occupation.

This information is crucial for anyone working in, or hoping to enter, the Canadian job market.

Understanding the TEER System: A New Framework for Canadian Occupations

In 2021, Canada introduced the NOC 2021 system, which brought with it a new framework known as the Training, Education, Experience and Responsibilities (TEER) system. The TEER system replaces the former skill types and levels with a more detailed categorization:

TEER 0: Management Occupations

This category remains consistent with the NOC 0 category in the previous system, encompassing roles that involve planning, directing, and coordinating the work of others.

TEER 1: Occupations typically requiring a university degree

Similar to the NOC A category, this level includes professions that generally require a university degree and advanced knowledge in a specific field.

TEER 2: Occupations typically requiring a college diploma or apprenticeship training of 2 years or more, supervisory occupations, or those with significant safety responsibilities

This category aligns more closely with higher-level NOC B jobs, encompassing positions that demand a significant level of technical expertise and responsibility.

TEER 3: Occupations typically requiring a college diploma or apprenticeship training of less than 2 years or more than 6 months of on-the-job training

This level aligns with lower-level NOC B jobs, typically requiring specialized knowledge and training but less extensive experience than TEER 2.

TEER 4: Occupations typically requiring a high school diploma or several weeks of on-the-job training

Similar to the NOC C category, this level encompasses roles that typically require a high school diploma and job-specific training.

TEER 5: Occupations typically requiring no formal education or only a high school diploma

This category mirrors the NOC D category, encompassing occupations that generally rely on on-the-job training and may not require formal qualifications.

Navigating the TEER System for Immigration

The specific TEER or NOC level required for immigration programs or employment criteria can vary. Understanding the category your occupation falls under is crucial for navigating different immigration pathways, including Express Entry, Provincial Nominee Programs (PNPs), and other labor market assessments.

For the most accurate and up-to-date information, always refer to the official NOC webpage of the Canadian government, where you can search for job titles and their corresponding NOC or TEER categories.

New Measures Impacting Low-Wage LMIA Applications in Canada

Effective September 26, 2024, significant changes are being implemented for Labor Market Impact Assessment (LMIA) applications related to low-wage positions in Canada. These measures aim to prioritize Canadian workers and safeguard employment opportunities:

1. LMIA Processing Restrictions in High Unemployment Areas:

LMIA applications for low-wage positions will no longer be processed in regions with an unemployment rate of 6% or higher. This aims to ensure that available positions are first offered to Canadian residents.

2. Reduced Cap on Low-Wage Positions:

The cap on the number of low-wage positions for which an LMIA can be obtained has been reduced from 20% to 10% of an employer’s total workforce. For example, a company with 10 employees can only hire one foreign worker for a low-wage position.

3. Shorter Maximum Employment Duration:

The maximum employment duration for low-wage positions is being shortened from 2 years to 1 year. This means that foreign workers granted work permits will have a maximum of one year to work in their respective positions.

4. Additional LMIA Processing Restrictions:

LMIA applications for low-wage positions exceeding the new cap will not be processed. LMIA applications for in-home caregiver positions requiring live-in arrangements are also no longer eligible. Additionally, employers who have had an LMIA revoked within the past two years will not be able to submit new applications.

Key Takeaways:

These changes emphasize the Canadian government’s commitment to protecting domestic job opportunities and fostering a robust labor market. Employers seeking to hire foreign workers for low-wage positions must carefully consider these new regulations and ensure their applications meet the revised criteria.

LMIA Processing Pause in Montreal for Low-Wage Positions

From September 3, 2024, to March 3, 2025, LMIA applications for low-wage positions in the Montreal area will not be processed for positions paying below the Quebec median hourly wage of $27.47.

This pause in processing applies only to the Montreal region and is temporary, lasting for a period of six months. It aims to ensure that employment opportunities in the region are offered to Canadian residents first, particularly for positions that fall within the lower wage range.

Key Takeaways:

• This temporary pause in processing applies only to LMIA applications for low-wage positions in Montreal.
• The wage threshold for this pause is set at the Quebec median hourly wage of $27.47.
• This measure is in effect from September 3, 2024, to March 3, 2025.

It’s important for employers seeking to hire foreign workers for low-wage positions in Montreal to be aware of this temporary processing pause and adjust their hiring plans accordingly.