Last updated on September 2nd, 2024 at 07:38 am
Canada is set to reduce the number of temporary foreign workers by tens of thousands, marking a significant reversal of the program’s recent expansion in 2022. This decision comes as the government grapples with concerns over the rising number of temporary residents and their impact on the Canadian labor market.
Key Changes to the Temporary Foreign Worker Program
The Temporary Foreign Worker Program, designed to address labor shortages by bringing non-Canadians into the country on a short-term basis, has been heavily criticized. Detractors argue that the program suppresses wages and exposes workers to potential abuse, particularly due to the permits that bind workers to specific employers. A UN special rapporteur has even described it as “a breeding ground for contemporary forms of slavery.”
Prime Minister Justin Trudeau’s government has announced a series of changes to reduce the program’s scale:
- Ending Low-Wage Worker Permits in High-Unemployment Areas: Low-wage temporary foreign workers will no longer be allowed in communities where unemployment exceeds 6%.
- Reducing Employer Reliance on Low-Wage Workers: The proportion of an employer’s workforce that can consist of low-wage temporary foreign workers will be cut to 10%.
- Shortening Work Permits: The duration of low-wage temporary foreign worker permits will be reduced from two years to one year.
Exemptions and Expected Impact
Certain sectors will be exempt from these changes, including agriculture, food processing, construction, and healthcare, where labor shortages are particularly acute. Despite these exemptions, the Employment Minister, Randy Boissonnault, has stated that the measures are expected to reduce the number of temporary foreign workers by approximately 65,000.
Political and Economic Reactions
Prime Minister Trudeau acknowledged the growing concerns among Canadians regarding the influx of immigrants. With an election on the horizon and lagging in polls, Trudeau emphasized the need for responsible immigration policies that balance the country’s needs with pathways to success for newcomers.
Economist Mike Moffatt, Senior Director at the Smart Prosperity Institute, described the changes as “a great first step,” but called for the complete abolition of the low-wage stream, indicating that further reforms might be necessary.
Looking Ahead
The Canadian government has committed to unveiling a broader immigration plan this fall, aiming to manage the number of temporary residents, which currently accounts for 6.8% of the country’s population. The government’s target is to reduce this share to 5% within three years.
Canada’s decision to scale back its Temporary Foreign Worker Program reflects growing concerns over immigration and its economic and social implications. As the government prepares to introduce a comprehensive immigration strategy, the changes announced are a significant step toward addressing these challenges.
