By Anna Mehler Paperny
TORONTO (Multibagger) - In a significant move, Canada is cutting back on the number of temporary foreign workers it brings in, reversing expansions made in 2022. This decision comes as the government grapples with reducing the overall number of temporary residents in the country.
The temporary foreign worker program, which brings non-Canadians to work in Canada on a short-term basis, has faced criticism for its impact on wages and worker vulnerability. The program has been described as "a breeding ground for contemporary forms of slavery" by a UN special rapporteur.
Prime Minister Justin Trudeau has indicated that his government is also considering reductions to permanent resident streams. This move follows public concerns about the increasing number of immigrants in Canada and Trudeau's declining popularity in polls.
Trudeau stated, "We're looking at the various streams to make sure that as we move forward, Canada remains a place that is positive in its support for immigration, but also responsible in the way we integrate and make sure there's pathways to success for everyone who comes to Canada."
Canada aims to present a comprehensive plan on immigration levels in the coming fall, with a focus on reducing the number of temporary residents. The government has set a target to reduce the temporary resident population to 5% of Canada's total population within three years.
The recent changes announced include ending low-wage temporary foreign workers in communities with high unemployment rates, limiting the share of low-wage foreign workers in employers' workforces, and reducing the length of permits for low-wage workers. Certain sectors like agriculture, food processing, construction, and healthcare are exempt from these changes.
Combined with earlier measures, the new regulations are expected to decrease the number of temporary foreign workers by approximately 65,000, according to Employment Minister Randy Boissonnault.
Economist and Smart Prosperity Institute senior director Mike Moffatt welcomed the changes as a positive step but called for the abolition of the low-wage stream in the program.
Analysis:
Canada's decision to reduce the number of temporary foreign workers can have significant implications for the country's immigration policies and economy. By tightening regulations and cutting back on low-wage foreign workers, the government aims to address concerns about the impact of these programs on wages, worker vulnerability, and overall integration of immigrants. The changes are expected to not only affect the labor market but also shape the country's approach to immigration in the coming years. It is crucial for individuals to stay informed about these developments as they can impact job opportunities, wages, and the overall economic landscape of Canada.