Canada: Justin Trudeau government to reduce low-wage temporary foreign workers

Canadian Prime Minister Justin Trudeau on Monday announced that his government will reduce the number of temporary foreign workers doing low-wage jobs.

In a tweet, the Canadian Prime Minister said, “We’re reducing the number of low-wage, temporary foreign workers in Canada. The labour market has changed. Now is the time for our businesses to invest in Canadian workers and youth.”

Canada witnessed a historic surge in foreign workers after the government loosened restrictions during a severe post-Covid labour shortage. Some Canadian experts believe that this move has fuelled unemployment among immigrants and young people.

According to a report by CBC, employers in high unemployment areas — places where the unemployment rate is six per cent or higher — will not be able to hire low-wage temporary foreign workers (TFW), with limited exceptions for “food security sectors” like agriculture and food and fish processing as well as construction and health care where acute staffing shortages still exist.

Employers will also no longer be allowed to hire more than 10 per cent of their total workforce through the TFW program, the report said.

The two-year contracts of temporary foreign workers will also be reduced to one.

Accordint to a government statement, the TFW Program has been used to “circumvent hiring talented workers in Canada”.

“The Temporary Foreign Worker program was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy,” said Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages.