Canada slashes foreign worker intake, to reduce the number of permanent residents

According to The Globe and Mail, the federal government introduced three changes to the temporary foreign worker program during the second day of the cabinet retreat in Halifax. These changes, which will take effect on  September 26, follow previous adjustments made in March and over the summer.

During a press conference, Trudeau emphasized that employers in the construction, healthcare, and food security sectors would be exempt from these new rules. He stated that Canadian businesses need to invest in training and technology rather than increasing their reliance on low-cost foreign labour, highlighting concerns about fairness for Canadians seeking employment and the exploitation of temporary foreign workers.

Trudeau also mentioned that the cabinet is discussing potential changes to the number of permanent residents Canada accepts. He stressed the importance of ensuring that Canada remains supportive of immigration while being responsible in integrating newcomers and providing pathways to success.

The changes announced include reducing the share of temporary foreign workers that employers in the low-wage sector can hire to pre-pandemic levels of 10 per cent of their total workforce, down from 20 per cent. Additionally, the government will no longer process applications from employers in regions with an unemployment rate of 6 per cent or higher, a rule that was previously suspended due to the post-pandemic labour shortage. The maximum time workers can be employed in the low-wage stream will also be cut to one year, down from two.

The reliance on the low-wage stream has increased significantly since 2022, when Ottawa eased access to the program in response to labour shortages. Government records show that 83,643 temporary foreign worker positions in the low-wage stream were approved in 2023, compared to 28,121 in 2019.

Earlier in the year, the government announced plans to reduce the number of temporary residents and limit the number of foreign workers businesses can hire. Immigration Minister Marc Miller had indicated that the proportion of temporary residents in the population would be reduced from 6.2 per cent to 5 per cent over the next three years, with a finalized target expected by the fall.