Canada has introduced a new policy aimed at reducing the number of temporary foreign workers allowed into the country by tens of thousands. This move is part of the government’s strategy to limit the number of temporary residents permitted entry.
The Canadian government is reversing some of its 2022 immigration policies as it seeks to manage the influx of temporary residents entering the country. The Temporary Foreign Worker Program (TFWP) allows non-Canadians to enter Canada and work for short periods to address labour shortages, and it has expanded significantly in recent years.
However, the program has faced significant criticism. Many accuse it of suppressing wages and making workers vulnerable to exploitation, especially since work permits tie workers to specific employers. A UN Special Rapporteur has even described it as a “breeding ground for modern-day forms of slavery.”
Potential Reduction in Permanent Resident Streams
The reduction in temporary foreign workers may not be the only change on the horizon. Prime Minister Justin Trudeau indicated that the government is also considering reducing the number of permanent resident streams. Trudeau has faced mounting pressure from Canadians who argue that the country is accepting too many immigrants.
“We are looking at the different streams to ensure that as we move forward, Canada remains a positive place for immigration,” Trudeau said to reporters on Monday. “But we must also be responsible in how we integrate immigrants and ensure there are pathways to success for everyone coming to Canada.”
Trudeau added that the government will present a broader plan on immigration levels this fall.
Key Changes to the Temporary Foreign Worker Program
The new changes announced by the government on Monday will end the hiring of low-wage temporary foreign workers in communities where the unemployment rate is 6% or higher. The policy will also limit the proportion of an employer’s workforce that can be made up of low-wage temporary foreign workers to 10%. Furthermore, it will reduce the duration of low-wage temporary foreign worker permits from two years to one year. However, these changes will not affect certain sectors such as agriculture, food processing, construction, and healthcare.
Mike Moffatt, an economist and Senior Director at the Smart Prosperity Institute, called the changes a “great first step, but only the first step,” and has advocated for the complete abolition of the low-wage stream.
When combined with other recent policy changes, Canadian Employment Minister Randy Boissonnault stated that the expectation is to reduce the number of temporary foreign workers by about 65,000.
In April 2024, the Canadian government announced that starting in September 2024, international students in Canada will only be allowed to work 24 hours off-campus per week. That same month, the government ended the temporary policy that permitted international students to work more than 20 hours off-campus. This policy had been put in place during the COVID-19 pandemic to allow students to work more hours.
The recent changes introduced by Canada will impact both temporary foreign workers and international students. As the government seeks to balance labour demands with social integration and immigration, Canadians and policymakers will closely watch how these new policies shape the future of immigration in the country.
