Tech Desk
Aug 27, 2024
Canadian Prime Minister Justin Trudeau on Monday announced plans to reduce the number of low-wage temporary foreign workers and permanent residents coming to the country.
The statement was made during the second day of a cabinet recession aimed at forming the government’s autumn agenda. The decision came as Canada faced challenges regarding its speedily growing population, which economists said is straining housing and public services like healthcare.
According to federal statistics, immigration last year accounted for about 97% of Canada’s population growth. Trudeau and his government have faced criticism for increasing immigration without adequately extending services or boosting housing construction.
In addition, Canada’s unemployment rate has inflated to 6.4% over the past two months, with approximately 1.4 million people currently unemployed.
Trudeau in a press conference suggested plans to overtake the Temporary Foreign Worker Programme due to shifts in the labour market. "It's not fair to Canadians struggling to find a good job, and it's not fair to those temporary foreign workers, some of whom are being mistreated and exploited," Trudeau added.
The Temporary Foreign Worker Programme (TFWP) lets Canadian employers hire foreign nationals for temporary jobs when qualified Canadians are not available. The program has faced criticism from labour advocates. The United Nations in a report stated it was “a breeding ground for contemporary forms of slavery.”
UN special rapporteur Tomoya Obokata, a professor of human rights law at the University of York in the UK, reported abuse, underpayment, and other issues within the programme.
In recent times, the utilisation of the programme by employers has increased, specifically in industries such as agriculture and construction. This boost is partly due to the loosening of programme limitations to inform labour shortages following the COVID-19 pandemic.
Employment and Social Development Canada (ESDC) reported: “Nearly 183,820 temporary foreign worker permits were issued in 2023, marking an 88% increase from 2019. The ESDC criticised employers for using the programme to circumvent hiring talented workers in Canada."
The forthcoming changes involve the abolition of the processing of some work permits in regions where the unemployment rate is 6% or higher, with exceptions for seasonal food and agriculture jobs, construction, and healthcare. Moreover, the share of low-wage temporary foreign workers that employers can hire will be reduced from 20% to 10% of their total workforce.
These changes are set to be implemented on September 26. Previously this year, the Canadian government notified its intention to reduce the overall number of temporary residents for the first time in the country’s history. This cap will apply to foreign workers, international students, and asylum seekers.
