Canada to cut number of temporary foreign workers

Prime Minister Justin Trudeau announced plans to cut the number of low-wage temporary foreign workers and permanent residents entering Canada. This decision was made on Monday, during the second day of a cabinet retreat where Trudeau’s team is finalizing their autumn agenda.

Canada is currently facing challenges related to a rapidly increasing population, which economists suggest is straining housing and public services like healthcare. Federal statistics reveal that immigration accounted for approximately 97% of Canada’s population growth last year. The government, however, has faced criticism for ramping up immigration without simultaneously enhancing services or expanding housing infrastructure.

In recent months, Canada’s unemployment rate has risen to 6.4%, with about 1.4 million people currently unemployed across the nation. Trudeau addressed these concerns in a press conference, highlighting a need to reform the Temporary Foreign Worker (TFW) program in response to evolving labor market conditions.

“It’s not fair to Canadians struggling to find a good job, and it’s not fair to those temporary foreign workers, some of whom are being mistreated and exploited,” Trudeau stated. The TFW program permits Canadian employers to hire foreign nationals for temporary positions when qualified Canadians are unavailable. However, the program has faced increasing scrutiny from labor advocates and recently the UN, which described it as “a breeding ground for contemporary forms of slavery” in a recent report.

Tomoya Obokata, UN special rapporteur and professor of human rights law at the University of York in the UK, reported various abuses including underpayment and mistreatment of workers. The program’s usage has surged in recent years across sectors like agriculture and construction, partly due to relaxed restrictions aimed at addressing labor shortages post-COVID.

In 2023, Canada granted nearly 183,820 temporary foreign worker permits, marking an 88% increase from 2019. The Employment and Social Development Canada (ESDC) criticized employers for using the TFW program to bypass hiring Canadian talent. The new changes will include a reduction in the proportion of low-wage temporary foreign workers employers can hire, decreasing from 20% to 10% of their overall workforce.

Additionally, the government plans to halt processing work permits in regions where the unemployment rate is 6% or higher, with specific exceptions for seasonal jobs in agriculture, construction, and healthcare. These changes will take effect on September 26.

Earlier this year, the Canadian government also signaled its intention to reduce the overall number of temporary residents for the first time in the country’s history. This cap will apply not only to foreign workers but also to international students and asylum seekers.

Overall, the planned reforms reflect the government’s response to mounting pressure to address the impacts of rapid immigration on housing, services, and employment opportunities for Canadian citizens.