Canada to Limit Number of Temporary Foreign Workers and Permanent Residents

Prime Minister Justin Trudeau announced plans to reduce the intake of low-wage temporary foreign workers and permanent residents in Canada. The announcement was made on Monday during the second day of a cabinet retreat focused on setting the government’s autumn agenda.

This decision comes as Canada faces challenges from its rapidly growing population, which economists say has strained housing and public services like healthcare. According to federal statistics, 97% of Canada’s population growth last year was driven by immigration. Trudeau and his government have faced criticism for increasing immigration without adequately expanding services or housing.

Canada’s unemployment rate has risen to 6.4% over the past two months, leaving around 1.4 million people unemployed nationwide. In response, Trudeau said he plans to revamp the Temporary Foreign Worker program, which allows Canadian employers to hire foreign nationals for temporary jobs when qualified Canadians are unavailable.

Trudeau highlighted concerns about fairness to Canadian job seekers and the exploitation of temporary foreign workers. The program has been criticized by labor advocates and recently by the UN, which described it as “a breeding ground for contemporary forms of slavery” in a report.

The use of the program has surged in recent years, especially in industries like agriculture and construction, partly due to relaxed restrictions to address labor shortages after the COVID-19 pandemic. In 2023, nearly 183,820 temporary foreign worker permits were issued, an 88% increase from 2019.

The Employment and Social Development Canada (ESDC) criticized employers for using the program to bypass hiring skilled Canadian workers. The upcoming changes will include refusing to process work permits in areas with an unemployment rate of 6% or higher, except for seasonal food, agriculture, construction, and healthcare jobs.

Overall, the plan will reduce the proportion of low-wage temporary foreign workers that employers can hire from 20% to 10% of their workforce. These changes will take effect on September 26. Earlier this year, the Canadian government signaled its intention to cap the number of temporary residents, including foreign workers, international students, and asylum seekers, for the first time in the country’s history.