Canada is scaling back its intake of temporary foreign workers, reversing expansions made in 2022. This shift comes as Prime Minister Justin Trudeau faces mounting pressure to curb the number of temporary residents, a topic that has sparked widespread debate.
The temporary foreign worker program, designed to address labour shortages by bringing in non-Canadians for short-term jobs, has ballooned in size. Critics argue that the program has not only suppressed wages but also exposed workers to exploitation, especially due to permits that tie them to specific employers. The situation has drawn the attention of the United Nations, with a special rapporteur branding the program “a breeding ground for contemporary forms of slavery.”
Trudeau, already trailing in polls with an election on the horizon, acknowledged the growing concerns among Canadians. “We are evaluating various streams to ensure Canada remains supportive of immigration while being responsible in integrating newcomers and creating pathways to success,” Trudeau stated on Monday. A comprehensive plan on immigration levels is expected this autumn.
The government’s pledge to reduce the temporary resident population to 5% of Canada’s total population within three years is ambitious. As of April, temporary residents made up 6.8%, a figure the Bank of Canada predicts will climb further.
Among the changes announced are measures to end low-wage temporary foreign worker permits in areas with unemployment rates of 6% or higher, reduce the proportion of low-wage temporary foreign workers in employers’ workforces to 10%, and shorten the duration of low-wage permits from two years to one. Sectors like agriculture, food processing, construction, and healthcare will be exempt from these changes.
Canadian Employment Minister Randy Boissonnault said the adjustments are expected to decrease the number of temporary foreign workers by about 65,000. While some see this as a positive step, others, like economist Mike Moffatt, argue it’s just the beginning, calling for the complete abolition of the low-wage stream.
Trudeau’s announcement was part of a broader strategy session during a cabinet retreat, where his team is crafting their agenda for the coming months. The Canadian government has been under fire for expanding immigration without sufficiently enhancing services or housing. This criticism is compounded by the country’s rising unemployment rate, now at 6.4%, with 1.4 million Canadians unemployed.
The government’s temporary foreign worker program has surged in use, with 183,820 permits granted in 2023—an 88% increase since 2019. The program, which was initially intended to fill gaps where Canadian workers were unavailable, has been accused of allowing employers to bypass hiring locally. The Employment and Social Development Canada (ESDC) echoed this sentiment, criticising the misuse of the program.
Starting on 26 September, the changes will take effect, marking a significant shift in Canada’s approach to managing its labour market and immigration. The move to cap the intake of temporary foreign workers, as well as international students and asylum seekers, signals the government’s intent to recalibrate its immigration policies amidst a complex and evolving landscape.
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