Prime Minister Justin Trudeau announced plans to reduce the number of low-wage temporary foreign workers and permanent residents allowed into Canada, as part of a broader effort to address challenges stemming from rapid population growth. This decision was revealed during a press conference at a cabinet retreat in Halifax on Monday, where Trudeau emphasized the need for newcomers to integrate successfully while ensuring the protection of Canadian jobs.
Canada’s population growth, largely driven by immigration—accounting for 97% of the increase last year—has put significant pressure on housing and public services like healthcare. Critics have argued that the government’s approach to increasing immigration has not been matched with adequate expansion of these essential services.
The country’s unemployment rate has also risen to 6.4% over the past two months, with 1.4 million people currently unemployed. In response, Trudeau highlighted the need to reform the Temporary Foreign Worker program, which has been criticized for both its impact on the labor market and the treatment of workers.
“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 stated.
The Temporary Foreign Worker program, which allows Canadian employers to hire foreign nationals for temporary positions when qualified local workers are unavailable, has seen a surge in use, particularly in sectors like agriculture and construction. This rise followed the loosening of program restrictions to address labor shortages after the COVID-19 pandemic. In 2023, nearly 183,820 temporary foreign worker permits were issued—an 88% increase from 2019.
However, the program has come under fire from labor advocates and the United Nations, with reports of worker abuse and exploitation. A recent UN report described the program as a “breeding ground for contemporary forms of slavery.”
To address these concerns, the Canadian government will implement changes effective September 26. These include refusing to process some work permits in regions with an unemployment rate of 6% or higher, with exceptions for critical sectors like seasonal agriculture, construction, and healthcare. Additionally, the proportion of low-wage temporary foreign workers that employers can hire will be reduced from 20% to 10% of their workforce.
Earlier this year, the government also signaled plans to limit the overall number of temporary residents, including foreign workers, international students, and asylum seekers, for the first time in Canadian history. These measures aim to balance the needs of the labor market with the well-being of both Canadians and temporary foreign workers.