Canada needs 1 Million Foreign Workers over the next Five Years

In the next five years, Canada will require around 1 million people to compensate for the severe shortage of labor in the coming years since birth rates have decreased and more Canadian youngsters move to large cities for lucrative jobs in the areas of finance, communication as well as services sectors and skilled labor in other areas of the economy have decreased over the last few decades.

Numerous Canadian provinces, including Alberta and Ontario, along with Quebec, are covered by bilateral labor agreements with specific countries, which has led to the displacement of hundreds of international workers in the oil-rich regions since 2004.

Ottawa has given the authority to several provinces within Canada to hire temporary foreign workers for the period of 2024. Quebec employers are able to employ additional temporary foreign laborers beginning on January 10 of this year.

In this article, we’ll be discussing:

  • Why Canada requires more Foreign Workers
  • Jobs that are in high demand In Canada to Foreign Workers
  • Why are more Canadian Employers now hiring Foreign Workers
  • Work Permit Programs for Foreign Workers

In addition, the provincial government of British Columbia also forecasts more than a million job openings over the next five to 10 years, with 64 percent of those taking on people who are retiring. Based on the projection, social assistance, health care, and education sectors will create the majority of jobs in the areas of counseling, child protection, and housing for communal use.

Based on Statistics Canada, employers were seeking to fill an average of 5.2 vacant positions for every 100 workers in the month of December. This is an increase over the average of just three vacant positions in the fourth quarter of 2019. Due to the increased number of positions available, the unemployment rate in Canada dropped to 5.4 percent in the month of December, which is the lowest rate since December of 2019, when it was 5.2 percent.

Why do more Canadian companies are now employing Foreign Workers

Each year Canadian Employers employ thousands of workers from abroad in more than 100 different work permit options. Except for 2020, the numbers have been steadily increasing since 2015 and have shown no sign of slowing.

To legally work in Canada, foreign workers need to get authorization to work. In certain instances, when attempting to hire foreign workers, the employer has to conduct a labor Market Assessment (LMIA) Assessment (LMIA) or a test of the labor market. In spite of this, however, the majority of work permits issued at any time are exempt from LMIA.

Work Permit Programs for Foreign Workers

The Temporary Foreign Worker Program (TFWP) as well as the International Mobility Program (IMP), are the two major work permit programs in Canada.

The primary difference is that TFWP obliges employers to apply for an LMIA, and IMP work permits don’t require an LMIA.

It is the Temporary Foreign Worker Program (TFWP) is designed to ease Canada’s labor shortages. Employers must comply with their LMIAprocedure in order to demonstrate to the department of Employment and Social Development Canada (ESDC) that hiring an employee from abroad is required due to the shortage of skilled workers. The LMIA is reviewed by ESDC to determine if hiring an employee from outside the country will not adversely impact the Canadian labor market. The employer provides an official copy of the neutral or positive LMIA to the worker from abroad so that they can submit it along with their application for a work permit for Immigration, Refugees, and Citizenship Canada (IRCC). Once their work permit application has been accepted, the applicant can start working.

The International Mobility Program (IMP), On the other hand, is designed to support the country’s broad social, cultural as well as economic goals; thus, no employment market test is needed. The free trade agreements with Canada have led to a huge quantity of IMP work permits. For instance, Canada-United States-Mexico Agreement (CUSMA, also referred to as NAFTA) is an internationally renowned free trade agreement that allows citizens from Canada, the United States, and Mexico to work in Canada without the requirement of an LMIA. Through agreements with youth between Canada and a few other nations, young people from all over the world can be employed in Canada as part of the IMP.

According to the IMP, international graduates and qualified spouses and common-law partners can obtain open work permits within Canada. Employees who are granted open work permits can accept any job offer that is made within Canada, regardless of the company or industry. Employers don’t need to have an LMIA to employ employees who have open work permits as they are covered under the IMP.