Canada tightens rules on temporary foreign workers, Response to unemployment trends

The Canadian government is set to implement stricter regulations for bringing in temporary foreign workers as part of its plan to phase out the pandemic-era measures that were initially introduced to address labor shortages. Announced on Monday, these new measures emphasize the importance of prioritizing the hiring of Canadian workers.

In addition to these changes, the government has indicated that further steps will be taken to ensure businesses fully utilize the domestic labor force. This includes encouraging the employment of young people, fresh graduates, and individuals with disabilities.

A United Nations special rapporteur has previously described the temporary foreign worker program as "a breeding ground for contemporary forms of slavery," highlighting the need for reform.

Prime Minister Justin Trudeau mentioned that his cabinet is also reviewing the permanent resident streams, considering potential reductions. Trudeau, who has been trailing in the polls ahead of an expected election next year, acknowledged that a growing number of Canadians feel that the country is accepting too many immigrants.

"We’re looking at the various streams to ensure that as we move forward, Canada remains a welcoming place for immigrants, while also being responsible in how we integrate newcomers and create pathways to success for everyone," Trudeau stated during a press conference on Monday. He added that the government will present a comprehensive plan on immigration levels later this fall.

Canada has long been known for its openness to immigrants, but the government is now facing pressure to reduce the number of temporary residents, which has seen a significant increase in recent years. The government has committed to reducing the temporary resident population to 5% of Canada’s total population within three years, down from 6.8% as of April. The Bank of Canada has projected that this number will continue to rise without intervention.

Among the changes announced on Monday is the termination of low-wage temporary foreign worker permits in communities with unemployment rates of 6% or higher. Additionally, the proportion of an employer’s workforce that can consist of low-wage temporary foreign workers will be reduced to 10%, and the duration of a low-wage temporary foreign worker permit will be shortened from two years to one.

Certain sectors, including agriculture, food processing, construction, and healthcare, will be exempt from these changes.

Employment Minister Randy Boissonnault stated that these measures, combined with changes made earlier this year, are expected to reduce the number of temporary foreign workers by approximately 65,000.

Mike Moffatt, an economist and senior director at the Smart Prosperity Institute, described the changes as "a great first step, but only a first step," advocating for the eventual abolition of the low-wage stream altogether.