Canada permits temporary foreign workers amid economic concerns

Canada is set to reduce the number of temporary foreign workers allowed into the country under new rules announced on Monday.

This shift marks a significant change in Canada’s traditionally open immigration policy, which has led to a recent surge in newcomers.

The new regulations include reinstating a ban on temporary foreign worker permits for low-wage positions in cities with an unemployment rate of six percent or higher.

The changes come in response to Canada’s highest population growth in over 50 years, driven largely by immigration.

As the population surpasses 40 million, the country has also experienced a rise in unemployment, reaching 6.4 percent over the past year.

This increase, coupled with the population boom, has strained housing and social services, prompting the government to adjust its immigration approach.

Immigration Minister Marc Miller emphasized that the updated migration rules are designed to align with the current economic climate and job market in Canada.

The government has introduced a cap on temporary migrants, resulting in 65,000 fewer temporary foreign workers being allowed into the country each year.

This cap reduces the share of temporary migrants in the population from 6.2 percent to five percent.

The temporary foreign worker program had been expanded post-COVID-19 to help businesses struggling with labor shortages, especially in sectors like fast food and agriculture.

However, with rising unemployment and economic pressures, the government is now scaling back.

Among the new measures, permits for low-wage jobs will be limited to one year instead of two, and the share of temporary foreign workers an employer can hire will revert to the pre-pandemic level of 10 percent.

Exemptions to these rules will be made for the agriculture, health care, and construction sectors, which remain critical to the Canadian economy. The new rules will take effect on September 26.