Canada is adjusting its approach to managing foreign workers, beginning September 26. The country is shifting focus from the previous expansions in the Temporary Foreign Worker (TFW) program, which in 2022 saw an increase in economic immigrants to fill about one million vacant jobs.
With a low birth rate, Canada depends heavily on immigrants to support its economy and fund essential services like education and healthcare. Last year, Canada set ambitious immigration targets, aiming to welcome 485,000 new immigrants in 2024 and 500,000 in 2025 and 2026.
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However, Canadian Prime Minister Justin Trudeau announced a change on Monday. He stated that Canada would be reducing the intake of low-wage, temporary foreign workers. “The labour market has changed. Now is the time for our businesses to invest in Canadian workers and youth,” he said in a tweet.
According to the Employment and Social Development Canada (ESDC), the TFW program was initially meant to address gaps where Canadian and permanent residents could not fill job vacancies. The ESDC noted that the program had sometimes been used to bypass hiring qualified Canadians.
The new guidelines will limit employers to hiring no more than 10 percent of their workforce through the TFW program. Exceptions will be made for seasonal and non-seasonal jobs in sectors like agriculture, food processing, healthcare, and construction. Additionally, the maximum duration for workers under the low-wage stream will be reduced from two years to one year.
ESDC emphasized that employers need to invest in training and upskilling Canadian workers, including youth, newcomers, and people with disabilities, who are often underutilized. Employment Minister Randy Boissonnault highlighted that the TFW program was meant to address labour shortages when no qualified Canadians were available, but the current situation shows that there are more Canadians ready to fill these roles.
The changes will take effect on September 26.
FAQs:
1. Why is Canada reducing its intake of foreign workers?
Canada is shifting its focus to invest more in Canadian workers and youth, as the labour market has evolved and more Canadians are available to fill job openings.
2. What are the new limits for the TFW program?
Employers will be limited to hiring no more than 10 percent of their workforce through the TFW program. Exceptions apply to certain sectors like agriculture and healthcare, and the duration for low-wage workers will be cut from two years to one year.
3. When will these changes take effect?
The new regulations will come into effect on September 26.
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