Canadian Prime Minister Justin Trudeau has announced a significant reduction in the number of temporary foreign workers allowed into the country, reversing expansions made in 2022.
Combined with earlier changes, these measures are expected to decrease the number of temporary foreign workers by approximately 65,000. Such a decision comes as the government seeks to address concerns over the increasing number of temporary residents, VisaGuide.World reports.
The temporary foreign worker program, originally designed to ease labor shortages, has faced significant criticism for suppressing wages and exposing workers to potential abuses due to employer-tied permits.
Employers in Canada have a responsibility to invest in the full range of workers available in this country, such as young people, newcomers, and persons with disabilities, who are too often an untapped economic resource in Canada. They must also invest in retraining or upskilling to ensure that those they currently employ can adapt to the economy of the future.
Recent federal statistics show that immigration has driven approximately 97 percent of last year’s population increase. In addition, Canada’s unemployment rate has risen to 6.4 percent over the past two months, with about 1.4 million people currently unemployed.
Canada’s New Rules for Temporary Foreign Workers
Last year, Canada issued nearly 183,820 temporary foreign worker permits, an 88 percent increase from 2019. New regulations will take effect on September 26, 2024, to address the current employment situation. These changes include:
- Ending permits for low-wage temporary foreign workers in communities with an unemployment rate of six percent or higher.
- Limiting the proportion of low-wage temporary foreign workers within employers’ workforces to ten percent.
- Reducing the duration of low-wage temporary foreign worker permits from two years to one year.
According to the government, certain sectors, including agriculture, food processing, construction, and healthcare, will be exempt from these new restrictions.
Moreover, the same authority noted that it would continue to monitor labor market conditions and may introduce additional changes to the Temporary Foreign Worker Program in the coming months.
Over the next 90 days, the government will reassess various aspects of the program, including potential modifications to the High-Wage Stream and existing Labour Market Impact Assessments (LMIAs). Adjustments may also affect sectoral exceptions and lead to the refusal of specific LMIA applications, including those from rural areas, for unfilled positions.
Recently, Canadian Immigration Minister Marc Miller also emphasized the need for reforms in the country’s temporary foreign worker program. His remarks follow a UN report labeling the scheme a “breeding ground for modern slavery”.