Canada is Dependent on Temporary Skilled Workers to Meet Labor Shortage Needs

Canada is Dependent on Temporary Skilled Workers to Meet Labor Shortage Needs

Canada desperately needs temporary foreign workers to meet its growing labor shortage needs. The Covid-19 pandemic has given rise to competition for skilled workers across many parts of the country. Additionally, due to an aging workforce and high retirement rates, Canada will become increasingly dependent on immigration to fill the needs for skilled workers and sustain the labor force in the years to come.

Canada needs temporary specialized workers and needs to utilize the available workers who contribute to the country’s economic growth and development. Although Canada has been prosperous in welcoming qualified workers, there have also been delays in capitalizing on their skills and using their potential in the best possible manner.

Canada’s market is heating up with numerous jobs coming, which also increases the wage rate in the country. The majority of job gains are related to full-time work. Industries such as the services sector, food services, accommodation, and construction have witnessed the highest employment gains over the past few months.  

A record number of Canadian employers report acute labor shortages and supply chain issues that hamper their ability to boost production and capacity to address their economic needs.

It is where the role of temporary skilled workers comes at the center stage. Temporary residents come to Canada for a specific time to fill job roles that a local applicant could not fill. Temporary visas can also be transitioned into permanent residency visas, provided you meet the eligibility requirements for the same.

A temporary residency visa is a tried and tested way to fill vacant job positions while ensuring that foreign workers get the right and protection to work in Canada safely. Canadian employers may hire temporary foreign workers under the following streams:

  • High wage workers
  • Low wage workers
  • Global talent stream
  • Foreign agriculture workers
  • In-home caregivers
  • Foreign academics

The programs are a powerful tool to stimulate Canada’s economy and foreigners who see the temporary workers program as a broader pathway to permanent residency.

The three types of work permits in Canada are:

  • Closed Work Permits
  • Open Work Permits
  • LMIA-exempt Work Permits

A closed work permit is issued to an overseas worker to work in a specific occupation and a particular employer in Canada. In contrast, an open work permit is not tied to any employer or a job position.

The LMIA exempt work permits foreign workers to work for a specific employer without needing an LMIA.

Labor Market Impact Assessment

The most prominent characteristic of the Temporary Foreign Worker Program in Canada is Labor Market Impact Assessment (LMIA). Any Canadian employer who plans to hire a foreigner must go through an LMIA process demonstrating a genuine need for an overseas professional for a position because of the scarcity of local talent.

Only after securing an LMIA will an employer be able to hire that worker, allowing the foreign national to apply for a work permit to come to Canada.

However, Canada does have several programs that do not require an employer to obtain a labor market impact assessment. International Mobility Program is one such stream that does not need the LMIA report. The exemptions under the program are made based on the following parameters:

  • The person brings economic, cultural, or other benefits to Canada; and
  • The person benefits Canadians and permanent residents.

Although the Canadian immigration system prioritizes highly-skilled workers, its labor market also needs workers with lower skills. In 2021, Canada had promised to make 90,000 temporary workers permanent. So far, the country has granted 23,880 permanent residency visas to temporary foreign workers.

Temporary programs have played a crucial role in closing the gap between permanent residency pathways and the economic needs of Canada. The country will witness a demand for skilled workers as many sectors continue to boom. The economic trends also highlight a notable boost in several industries, with new occupations adding to the list demanding specialized qualifications and skill requirements. So, now is the right time to immigrate and write your Canadian story with your family. For more information about Canada Immigration, you may contact our immigration experts at 8595338595 or [email protected]

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