26 AUGUST: On Monday, the Canadian government announced plans to tighten regulations on temporary foreign workers (TFWs) in response to a significant increase that some experts believe has contributed to higher unemployment rates among immigrants and young people.
The federal government had previously relaxed these restrictions during a post-COVID-19 labour shortage, leading to a marked rise in the number of low-wage temporary workers. The new rules will prevent employers in regions with unemployment rates of six percent or higher from hiring low-wage TFWs, with certain exceptions for sectors experiencing acute staffing shortages, such as agriculture, food processing, construction, and healthcare.
Additionally, the government is now capping the number of low-wage TFWs to 10 percent of an employer’s workforce, down from the previous allowance, and limiting their contracts to one year instead of two. These changes are expected to reduce the number of low-wage TFWs by approximately 65,000, bringing figures back to pre-pandemic levels.
Officials noted that the decision to implement stricter rules is also aimed at easing housing market pressures, especially for more affordable homes, which have become highly competitive. With the number of TFWs increasing from 15,817 in 2016 to 83,654 in 2023, the adjustments are seen as necessary to balance economic and social needs.
Looking ahead, the government is also considering broader changes to the immigration system. Given the high unemployment rate among newcomers, currently at 11.6 percent, nearly double the national average of 6.4 percent, there is a possibility of revisiting the number of permanent residents allowed each year. The government is expected to review these levels this fall.
The planned review comes amidst growing concern about the pace of population growth and its impact on both the economy and social services. The government aims to ensure that immigration policies are sustainable and support Canada’s economic and social fabric.
There is an acknowledgment from government officials that adjustments may be required in immigration numbers to align with economic needs and societal expectations. The government is committed to making informed changes that reflect the best interests of Canadians while maintaining a balanced approach to immigration.
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