Canada looks to reduce number of temporary foreign workers

The federal government is making changes to reduce the number of temporary foreign workers in Canada.

Prime Minister Justin Trudeau said they are tightening rules and restricting eligibility to the Temporary Foreign Worker Program, with exceptions in certain industries.

“We need Canadian businesses to invest in training and technology and not increasing their reliance on low-cost foreign labour,” Trudeau said on Monday.

The following changes will be implemented by Sept. 26:

• The federal government will refuse to process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream, applicable in census metropolitan areas with an unemployment rate of 6 per cent or higher. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and health care.
• Employers will be allowed to hire no more than 10 per cent of their total workforce through the TFW Program. This maximum employment percentage will be applied to the Low-Wage stream and is a further reduction from the March 2024 reduction to 20 per cent. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as health care/caregiving and construction.
• The maximum duration of employment for workers hired through the Low-Wage stream will be reduced to one year from two years.

Ottawa initially adjusted the program in light of labour challenges caused by the pandemic, but Trudeau said we no longer need as many temporary foreign workers.

“At that moment in time, those changes helped. They helped the economy and they helped businesses make it through a challenging moment in our economic recovery,” he said.

“But today’s economy is very different from what it was two years ago. Inflation has started to come down, employment is higher. We no longer need as many temporary foreign workers.”

Trudeau said further review will be undertaken over the next three months which could also lead to changes to the High-Wage stream.