PGWP and LMIA Restrictive Policies, Overcome with Working Holiday

16 Oct 2024
In recent years, the process and conditions for issuing Canadian work permits have been tightening. In particular, regulations related to the PGWP and LMIA have greatly affected foreign workers and international students who want to work in Canada. In this situation, working holiday programs are gaining attention as an alternative to deal with these issues. In this column, we'll take a closer look at the PGWP and LMIA restrictions that have been introduced, and how working holidays can be an alternative. 

The PGWP is a work permit that allows international students who have completed at least eight months of full-time education at a designated educational institution in Canada to work after graduation for up to three years. However, as of November 1, 2024, graduates of college programs outside of the five designated fields will no longer be eligible for a PGWP. The designated sectors are agriculture and agri-food, healthcare, STEM, technology, and transportation, which are in line with Canada's identified industries of need for Express Entry category-based selection. This reflects the government's and immigration's commitment to increasing the inflow of talent by targeting PGWPs to occupations that Canada needs. 

LMIA restrictions also affect foreign workers and international students. An LMIA is a document that allows Canadian employers to hire foreign nationals and certify that the employment will not negatively impact the Canadian labor market. It's a process that most employers who want to hire international labor must go through, as it authorizes them to find a foreign worker to replace them if they are unable to hire the necessary labor in Canada. However, the Canadian government has recently tightened restrictions on the issuance of LMIAs, significantly increasing restrictions on certain job categories and low-wage occupations.

In particular, low-wage occupations are more heavily regulated than high-wage occupations. Low wages are defined as those below the median wage for each region, which is published annually by Statistics Canada. In addition, there are different criteria for LMIA issuance depending on the region and occupation, and if the unemployment rate is higher than 6%, LMIA approval for low-wage workers is restricted. Therefore, it will be more difficult to get LMIA approval in regions where labor supply is not difficult. In addition, the time required for LMIA issuance has recently become longer, and many people are concerned about visa issuance.

Working Holiday is the program that has been most affected by all of these issues. With many work permit restrictions, working holiday visas can be a realistic alternative for young people. Young adults between the ages of 18 and 35 in South Korea can obtain a working holiday visa to live and work in Canada and have the freedom to work wherever they want. This is a great way for them to experience Canadian culture and build their careers. Working holiday visas are also relatively easy to obtain, as they don't require LMIA approval and don't have restrictive requirements such as specific education, making them less time-consuming and costly. 

 There are many other benefits to working holidays. Working holiday visa holders can work in a wide variety of sectors without being restricted to a specific job. Unlike LMIAs, which only allow you to work in approved occupations and positions, a working holiday visa, like an open work permit, allows you to work in any occupation you choose, which is very attractive to those who want to find a job in Canada that matches their skills and experience. In addition, the working holiday visa is valid for two years at a time and can be renewed once, for a maximum of two four-year periods, which is a huge advantage over the PGWP.

The various PGWP restrictions and the tightening of the LMIA restrictions have placed significant limitations on foreign nationals and international students who want to work in Canada. In the face of these changes, working holiday programs are an alternative way to get a visa with a hassle-free process, allowing you to live in Canada for a longer period of time and build your career in a variety of roles. In the current climate, these policies, when utilized appropriately, can easily overcome the challenges of gaining experience in Canada and achieving your long-term immigration goals beyond visa restrictions.


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