Canada saw a historic increase in foreign workers after the government relaxed restrictions during a severe post-Covid labor shortage. Some Canadian experts believe this surge has contributed to unemployment among immigrants and young people.
In Short
- Canada to cut low-wage foreign workers
- Labour market shift prompts policy change
- High unemployment areas face stricter hiring rules
Canadian Prime Minister Justin Trudeau announced on Monday that his government will reduce the number of temporary foreign workers employed in low-wage jobs. In a tweet, Prime Minister Trudeau stated, “We’re reducing the number of low-wage, temporary foreign workers in Canada. The labour market has changed. Now is the time for our businesses to invest in Canadian workers and youth.”
After the government loosened restrictions during a severe post-Covid labor shortage, Canada experienced a significant increase in foreign workers. However, some experts believe this has led to higher unemployment rates among immigrants and young people.
According to a report by CBC, employers in areas with high unemployment—where the unemployment rate is six percent or higher—will not be permitted to hire low-wage temporary foreign workers (TFWs), except in specific “food security sectors” such as agriculture, food and fish processing, as well as construction and healthcare, where there are still severe staffing shortages.
Additionally, employers will be restricted to hiring no more than 10 percent of their total workforce through the TFW program. The two-year contracts of temporary foreign workers will also be reduced to one year.
A government statement noted that the TFW Program has been used to “circumvent hiring talented workers in Canada.” Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, stated, “The Temporary Foreign Worker program was designed to address labor market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy.”
