Prime Minister Justin Trudeau announced plans to decrease the number of low-wage temporary foreign workers and permanent residents admitted to Canada. The statement was made during a cabinet retreat focused on setting the government’s autumn agenda.
This decision comes as Canada faces a rapidly growing population, which economists say is straining housing and public services like healthcare. Recent data shows that 97% of the country’s population growth last year was due to immigration.
Critics have pointed out that the government has not adequately expanded services or housing to keep pace with this growth. The country’s unemployment rate has also increased to 6.4%, with around 1.4 million people currently unemployed.
Trudeau cited changes in the labour market as a reason for overhauling the Temporary Foreign Worker programme, which allows employers to hire foreign nationals for temporary positions. “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,” he said.
The programme has faced criticism for enabling employer abuse and for being described by a UN report as a “breeding ground for contemporary forms of slavery.” The use of temporary foreign workers has surged in recent years, especially in industries like agriculture and construction, partly due to relaxed restrictions post-pandemic.
The new measures will limit work permits in areas with unemployment rates above 6%, excluding sectors such as seasonal agriculture, construction, and healthcare. The share of low-wage temporary foreign workers that businesses can hire will also be reduced from 20% to 10% of their workforce. These changes are set to take effect on September 26.