Canada is significantly reducing the number of temporary foreign workers allowed into the country, reversing some of the expansions made to the program in 2022. The government’s decision aims to address growing concerns about the impacts of temporary residents on labor markets and worker rights.
The temporary foreign worker program, designed to address labor shortages by bringing non-Canadians to work short-term, has faced criticism for its potential to suppress wages and expose workers to exploitation, with some permits tying workers to specific employers. A UN special rapporteur has labeled it as “a breeding ground for contemporary forms of slavery.”
Prime Minister Justin Trudeau indicated that his cabinet is also evaluating possible reductions to permanent resident streams. Facing lagging poll numbers ahead of next year’s election, Trudeau acknowledged increasing public concern about high immigration levels.
“We’re assessing various streams to ensure Canada remains welcoming to newcomers while also managing integration and success pathways responsibly,” Trudeau said. The government plans to unveil a comprehensive immigration strategy this fall.
Historically, Canada has been known for its open immigration policies, but recent pressures have prompted a shift. The government aims to reduce the proportion of temporary residents to 5% of the total population within three years, down from 6.8% in April.
The newly announced changes will end low-wage temporary foreign worker permits in communities with an unemployment rate of 6% or higher, cut the allowed share of low-wage temporary foreign workers in employers’ workforces to 10%, and limit permit durations to one year instead of two. Certain sectors, such as agriculture, food processing, construction, and healthcare, will be exempt from these restrictions.
Employment Minister Randy Boissonnault stated that these adjustments are expected to reduce the number of temporary foreign workers by approximately 65,000. Economist Mike Moffatt, however, called for further action, suggesting the low-wage stream should be abolished entirely.
