Canada Cuts Temporary Foreign Worker Permits

Canada announced new rules on Monday that will limit the number of temporary foreign workers allowed into the country, marking a shift in its previously generous immigration policy that has led to a surge of newcomers.

Under the new regulations, a ban on temporary foreign worker permits for low-wage jobs in cities with an unemployment rate of six percent or higher will be reinstated.

Canada has recently experienced its highest population growth in over 50 years, largely driven by immigration.

As the country’s population exceeded 40 million, there was also a noticeable increase in unemployment.

Immigration Minister Marc Miller emphasized the need for migration rules that “make sense in the current economy for Canadians, but also for the job market as it continues to constrict,” during a news conference. He added, “We won’t hesitate to take additional measures if necessary.”

In addition to a cap on temporary migrants introduced in March, the new rules will result in 65,000 fewer temporary foreign workers being admitted annually.

The cap has already reduced the proportion of temporary migrants in the population from 6.2 percent to five percent.

Previously, in response to business demands for more workers, the government had significantly increased the number of temporary foreign workers allowed into the country and expanded the program to include sectors such as fast food. Before this, most temporary foreign workers were employed in agriculture.

However, Canada’s unemployment rate has risen to 6.4 percent over the past year, and the population boom has put a significant strain on housing and social services.

Jobs Minister Randy Boissonnault stressed the importance of ensuring that “Canadians have access to those jobs” and eliminating abuses within the temporary foreign worker program.

The new rules announced Monday include a reduction in permits for low-wage jobs, from two years to one year. Sectors such as agriculture, health care, and construction will be exempt from these changes.

Additionally, the share of temporary foreign workers that an employer can hire will be reduced to the pre-pandemic level of 10 percent, down from 20 percent.

In January, Ottawa also introduced a cap on international students, citing concerns that the program was being used as a backdoor entry into Canada.

The new temporary foreign worker rules will come into effect on September 26.