Prime Minister Justin Trudeau announced Monday that the federal government will cut the number of temporary foreign workers in Canada following a historic surge that some experts say is driving up immigrant and youth unemployment rates.
The government relaxed regulations amid a severe post-COVID labor shortage, a decision that has led to a sharp increase in the number of low-wage temporary workers in particular.
Trudeau said employers in high-unemployment areas – those with unemployment rates of six per cent or more – cannot hire low-wage temporary foreign workers (TFWs) except in “food security sectors” such as agriculture, food and seafood processing, and in the construction and health care sectors, where severe labor shortages remain.
The government has reversed course again, announcing that employers will no longer be able to hire more than 10% of their workforce through the TFW program.
In addition, the contract period for low-wage TFWs will be limited to one year from the current two years.
Prime Minister Justin Trudeau said the Liberals are “continuing to” consult on immigration and the job market and that the government plans to present an “immigration levels plan” this fall that takes into account both permanent and temporary residents.
Asked by CBC News whether the government was considering broader changes to the immigration system, with the Bank of Canada estimating the unemployment rate for “new immigrants” at 11.6 per cent – significantly higher than the overall unemployment rate of about 6 per cent – Trudeau said the government plans to review overall immigration levels this fall.
Asked whether a reduction in the number of permanent residents was being considered, Trudeau hinted at the possibility and said the issue could be discussed at a cabinet meeting this week.
According to the government’s immigration plan, the country Approximately 485,000 The number of permanent residents is expected to reach 500,000 in 2024, and 500,000 each in 2025 and 2026.
“We are committed to ensuring that the full package of measures best serves the needs of Canadians and the needs of our economy,” Trudeau said.
“We will be looking at unemployment rates and opportunities for further adjustments as we develop a comprehensive level plan that addresses the realities Canada faces now and in the years and decades to come,” he said.
He said immigration needs to be “done right” and changes may be coming to ensure “Canada remains a country that actively supports immigration, but also takes responsibility for how integration takes place and ensures that everyone who comes to Canada has a path to success.”
