The federal government is looking to cure what Immigration Minister Marc Miller has referred to as an addiction to foreign workers.
What happened: Ottawa is reducing the share of low-wage temporary foreign workers (TFW) that Canadian employers can hire — to 10% of their workforce from 20% — reversing a 2022 policy that has contributed to record-high inflows of cheap foreign labour.
- The maximum employment time for workers will be halved to one year, and most industries in regions with an unemployment rate at or above 6% can no longer use the program.
Catch-up: Before turning to the TFW program, employers are supposed to provide proof that they can’t find a Canadian worker for the job. But even as Canadian unemployment rises, employers have been recruiting low-wage foreign workers at a record-high rate.
- Critics have long argued that letting employers fill 20% to 30% of their workforce with cheaper foreign labour would hurt workers and drive down wages.
Why it matters: The policy shift marks the biggest step Ottawa has taken to rein in a system that experts say has put major pressure on infrastructure like housing and healthcare, and contributed to the skyrocketing unemployment rate of young folks and newcomers.—LA