Why more companies in Canada recruiting foreign workers?

Every year, more work permits are issued. Here are a few options for hiring international workers in Canada.

Large number of international workers are hired by Canadian employers each year through more than 100 distinct work permit paths. With the exception of 2020, these figures have been steadily increasing since 2015 and show no indications of slowing down.

Canada has a large number of job openings and a low unemployment rate, implying that there are more job openings than competent employees to fill them. According to Statistics Canada, employers were looking to fill an average of 5.2 vacancies per 100 employees in December, up from 3 in the fourth quarter of 2019. This rise in job openings coincided with a drop in Canada’s unemployment rate, which fell to 5.4 percent in December 2021, its lowest level since December 2019, when it was 5.2 percent.

To summaries, there are industries with a large number of job openings and insufficient workers in Canada to fill them. One approach for Canadian firms to fill open positions is to recruit overseas talent.

LMIA and LMIA-exempt work permits

There are two major work permit programmes: the Temporary Foreign Worker Program (TFWP), and the International Mobility Program (IMP) (IMP).

The main difference is that the TFWP requires businesses to obtain an LMIA, whereas IMP work permits do not require an LMIA.

The TFWP aims to address Canada’s labour shortages. Employers must complete the LMIA process to show to Employment and Social Development Canada (ESDC) that hiring a foreign worker is necessary due to a shortage of qualified personnel. The LMIA is evaluated by ESDC to ensure that hiring a foreign worker would not negatively damage the Canadian labour market. The company gives a copy of the positive or neutral LMIA to the foreign worker so that they can submit it with their work permit application to Immigration, Refugees, and Citizenship Canada (IRCC). After their work permit application is approved, the individual can begin working.

The IMP, on the other hand, exists to promote Canada’s broad social, cultural, and economic goals, hence no labour market test is required. Canada’s free trade agreements have resulted in a large number of IMP work permits. For example, the Canada-United States-Mexico Deal (CUSMA, formerly known as NAFTA) is a well-known free trade agreement that permits nationals of the United States and Mexico to work in Canada without the need for an LMIA. Due to youth mobility agreements between Canada and some other countries, youth from all around the world are permitted to work in Canada under the IMP.

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