Canada plans to reduce the number of temporary foreign workers it admits by tens of thousands, reversing some of the program’s expansions from 2022, as part of intensified efforts to manage the temporary resident population.
Originally intended to address labour shortages, the temporary foreign worker program has significantly expanded. It faces criticism for depressing wages and making workers prone to exploitation, largely because permits bind workers to specific employers.
A UN special rapporteur described the program as “a breeding ground for contemporary forms of slavery.”
Prime Minister Justin Trudeau has indicated that his cabinet may also consider stream reductions for permanent residents. Amid declining poll numbers and growing public concern over immigration levels, Trudeau emphasized the need to ensure Canada supports immigration positively and responsibly, facilitating successful integration for all newcomers.
According to Trudeau, a broader immigration strategy will be unveiled this fall.
As the number of temporary residents has surged in recent years, Canada is under increasing pressure to reduce these numbers. The government has committed to lowering the temporary resident population to 5% of the total Canadian population within three years, down from 6.8% in April, with projections previously anticipating an increase.
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New policy changes will eliminate low-wage temporary foreign workers in areas with unemployment rates above 6%, restrict the proportion of such workers in employers’ total workforce to 10%, and shorten the duration of low-wage temporary foreign worker permits from two years to one year. However, these restrictions will not apply to certain sectors such as agriculture, food processing, construction, and healthcare.
Employment Minister Randy Boissonnault stated that these adjustments, combined with earlier modifications, will likely reduce the number of temporary foreign workers by approximately 65,000.
Economist Mike Moffatt, Senior Director at the Smart Prosperity Institute, hailed the revisions as a significant initial step but emphasized the need for further action, including the potential abolition of the low-wage stream.
