The TFW Program and Alberta’s Beauty Industry

What is it?

The Temporary Foreign Worker Program (TFWP) started back in 1973. Its original purpose was to allow Canadian employers to hire high-skilled foreign workers to address specific labour shortages when qualified Canadians or permanent residents were not available. More specifically, the program was designed to address shortages in agriculture, hospitality, and the care sectors.

How do employers participate in the TFWP?

Employers must complete a Labour Market Impact Assessment (LMIA). They must be a legitimate business and be able to prove difficulty in filling employment vacancies. In other words, they must advertise the job for at least 4 consecutive weeks in the 3 months prior to applying. Plus, their job advertisements must appear on three platforms, including the Government of Canada Job Bank.

In addition, there is a non-refundable application fee that employers have to pay for an LMIA of $1,000 CAD per position. If approved, the LMIA is valid for 6 months, during which the foreign worker must apply for a work permit. The LMIA is employer- and job-specific, meaning the worker cannot switch jobs without a new LMIA.

Benefits of the TFWP

The Government of Canada does not provide direct financial support, however, there are indirect supports. For example, the Settlement Program helps employers integrate skilled immigrants into the workforce through training and awareness programs. Another example is the Foreign Credential Recognition offers wage subsidies (up to $10,000) for onboarding skilled newcomers in specific sectors.

What’s all the fuss about?

Canada’s TFWP has faced growing criticism over the years. It has been trending recently being viewed by some as problematic for both workers and the broader Canadian labour market. Some of you may be wandering, what is this all about?

Amongst the most popular reasons are serious claims of worker exploitation and abuse. Another reason is fraud and misuse, where employers falsely claim no Canadians are available for jobs in order to hire TFWs at lower wages.

The most recent reason is youth unemployment and wage suppression. People argue the program contributes to higher youth unemployment and suppresses wages by allowing employers to hire cheaper foreign labor instead of investing in the local workforce. In other words, the program is being misused.

Is there a TFWP Impact on Alberta’s Beauty Industry?

In Alberta, the beauty and personal care sector often face staffing challenges due to a shortage of skilled estheticians and technicians. The TFWP has historically helped fill these gaps, particularly in rural or high-demand urban areas.

The beauty industry is part of the low-wage stream, which has seen a significant rise in LMIA applications due to labour shortages and high turnover. Also, employers in rural and smaller urban centers are more likely to use the TFWP to staff salons and spas where local recruitment is difficult.

References

(https://www150.statcan.gc.ca/n1/pub/36-28-0001/2023012/article/00005-eng.htm)

(https://www.cbc.ca/news/canada/calgary/temporary-foreign-workers-business-alberta-1.7243593)

(https://amnesty.ca/temporary-foreign-workers-report/)

EXECUTIVE SPA GROUP