On October 21, 2024, Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault made an important announcement. Effective November 8, 2024, the starting wage for workers in the high-wage stream will be increased by 20%, ensuring it exceeds the median wage in the applicable province or territory. This change aims to protect the integrity of the program while encouraging employers to hire from Canada’s vast talent pool.

The government’s intention behind these reforms is twofold: to safeguard the interests of Canadian workers and to promote fair competition in the labor market. By raising wage thresholds, the government hopes to reduce reliance on temporary foreign workers for high-wage positions, compelling employers to prioritize hiring domestic talent. This shift is expected to lead to increased wage growth for Canadians and improved job opportunities for those who have historically faced barriers in the job market.

However, these reforms also bring implications for businesses across Canada. While many employers may support the initiative to bolster local hiring, they might face challenges in adjusting to the new wage requirements. Increased labor costs could impact business operations, especially in sectors that traditionally rely on temporary foreign workers. As the government continues to monitor the labor market, businesses will need to adapt to these changes while ensuring compliance with the revised regulations.