While outlining plans to reduce the intake of low-wage, temporary foreign workers and permanent residents, the Canadian Prime Minister Justin Trudeau announced a significant policy decision on Monday.
Temporary Work Programme Launch in Canada
This appears to mark a shift from the program expansions which were introduced in 2022.
Interestingly this news comes when the Canadian government faces challenges in reducing the number of temporary residents.
Moving ahead, this policy change comes as Canada deals with rapid population growth.
In the meantime, this hike is straining housing and public services, such as healthcare, according to the economists.
As per the Federal statistics, approximately 97 percent of last year’s population increase was driven by immigration.
In a post on X (formerly Twitter), Trudeau announced that “We’re reducing the number of low-wage, temporary foreign workers in Canada. The labor market has changed. Now is the time for our businesses to invest in Canadian workers and youth.”
For the unawares, these latest adjustments are set to take effect from September 26.
The non-Canadians are allowed to work in the country for limited periods to address labor shortages, as per this temporary foreign worker program.
Concerns Over The Program
When it comes to this program, it has expanded significantly but has faced criticism for depressing wages and exposing workers to exploitation.
This is partly due to the restrictions of permits that bind workers to specific employers.
Reportedly, the labor advocates and the UN have recently voiced concerns over the program.
A recent media report published that a UN report this month, labeled the program a “breeding ground for contemporary forms of slavery.”
Not only that, this program’s growth has also been linked to loosened restrictions meant to address labor shortages following the Covid pandemic.
Approximately 183,820 temporary foreign worker permits were issued during 2023.
This was a sharp 88 percent rise in comparison to 2019, as per the information given by Employment and Social Development Canada (ESDC).
Further, the British broadcaster noted that the ESDC criticized some employers for leveraging the program to avoid hiring skilled Canadian workers.
Now, work permits will be denied in regions where the unemployment rate is at or above 6 per cent, with exceptions for sectors like seasonal agriculture, construction, and healthcare, under these new changes.
Besides this the employers will be limited to hiring low-wage temporary foreign workers as 10 percent of their workforce, reduced from the current 20 percent.
In addition with the earlier reforms, these measures are expected to decrease the number of temporary foreign workers by 65,000, said the Employment Minister Randy Boissonnault.
