Last fall, the federal government tightened rules for bringing in foreign workers to prioritize hiring domestic workers.
Now, many foreign workers, some with dreams of staying in Canada, feel blind-sided while employers in Bow Valley tourism who count on them to fill vacant positions fear the changes could force businesses to close.
“All of a sudden, things changed abruptly with no exceptions,” Natalia Rosas told GlobalNEWS, adding that her Visa expires next January. “We don’t want to leave, but we don’t have any option.”
Rosas is from Chile and was building up work hours so she could apply for permanent residency in Canada.
Doncath Holdings, which owns nine gift shops in Banff, can’t find workers.
“There’s not enough of a pool to draw from to fill all the positions,” said general manager Rebecca Lipes. “Unless something changes quite quickly, we will not be able to operate nine stores.”
Rule Tightening
Known as the Temporary Foreign Worker (TFW) program, the federal government launched sweeping changes last fall in response to concerns that foreigners were taking jobs from Canadians and adding to the country’s housing affordability crisis.
The changes include limiting businesses to a maximum of 10 percent foreign staff and limiting workers to stay in Canada for one year instead of two.
Businesses also face increased requirements for ensuring suitable accommodations for foreign workers while in Canada and providing return transportation to and from their country of origin.
Requirements for a positive Labour Market Impact Assessment (LMIA) remain in place before a business can hire temporary foreign workers at a cost of $1,000 per employee to the employer.
The LMIA is a document that an employer must obtain from Employment and Social Development Canada (ESDC) before hiring a foreign worker, essentially proving that no Canadian citizen or permanent resident is available to fill the job, thus justifying the need to hire a foreign worker; it serves as a way to ensure bringing in a foreign worker won’t negatively impact the Canadian job market.
The feds have also restricted the number of foreigners brought into the country under the TFW’s low-wage stream. These jobs pay below the provincial or territorial median wage plus 20 percent.
Immigration lawyers believe this change will hit sectors like tourism hard.
“Industries like agriculture, food processing, and hospitality rely heavily on the TFW program to fill low-wage jobs that Canadian workers often avoid. Restricting access to this stream could force these businesses to either raise wages to attract local talent or face severe labour shortages,” according to one analysis. “The government hopes this change will encourage employers to offer better wages and working conditions. However, the impact on industries dependent on low-wage labour could be significant.”
Looming Labour Shortage
At the time of the announcement, the federal government predicted there would be 20,000 fewer jobs approved through the TFW program.
Data from Immigration, Refugees and Citizenship Canada shows that 183,820 temporary foreign worker permits were given out in 2023, up from 98,025 in 2019.
Currently, there are nearly 3,500 job postings listed on the TFW job bank by employers that either already have or have applied for the required labour market analysis.
Increased restrictions on the TFW program may discourage its use, “but it does nothing to address major labour shortages. If nothing is done, the tourism sector will be left with a forecasted labour shortage of 250,000 by 2030, which will cost the Canadian economy $31.4 billion in foregone revenues,” according to a study by the Tourism Industry Association of Canada and the Banff and Lake Louise Hospitality Association.
In Banff, foreign workers have become an integral part of the community.
“The people that are here, they are not just employees — they are like family to us,” said Jessica Dostie, of the family that owns Doncath.
