Feds contemplate reform for temporary foreign worker program amid pushback on immigration

At the end of 2023, nearly 190,000 temporary foreign workers held valid work permits—up 157% from 2019. The feds are now committing to strict enforcement of current rules, and pondering reforms.

Feds contemplate reform for temporary foreign worker program amid pushback on immigration
The Canadian Press / Justin Tang
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The Trudeau government is taking further action to rollback loose immigration targets and limit misuse of the temporary foreign worker program.

Employment Minister Randy Boissonnault met with several business associations Tuesday, detailing they could not hire temporary workers in place of qualified Canadians.

“I’ve been clear over the last year; abuse and misuse of the TFW program must end,” said Boissonnault in a statement. “Bad actors are taking advantage of people and compromising the program for legitimate businesses.”

Employment and Social Development Canada (ESDC) notes the pandemic labour shortages were no longer a concern, alluding to a return to equilibrium. They declined to clarify who attended the meeting.

As part of the announcement, federal officials pledged to enforce the 20% cap on foreign workers for low-wage positions, and mandate employers demonstrate their labour needs cannot be filled locally. That cap increases to 30% for healthcare and construction.

At the end of 2023, nearly 190,000 people held valid work permits through the program—up 157% from 2019.

Cooks, food counter attendants and construction workers are among the low-wage employees in high demand, reported the Globe and Mail. Minister Boissonnault may refuse applications for low-wage streams outright.

The ESDC performed more than 2,122 assessments concerning the Temporary Foreign Worker (TFW) program. Only 6% of employers were not compliant, resulting in $2.1 million in penalties.

Other measures under consideration include raising fees to fund the growing assessments, and regulatory reform to reduce employer eligibility, which currently includes foreign students.

That represents a stark departure on the immigration file for the Trudeau government, who expanded TFW access in recent years. However, housing and lengthening queues for critical services have changed the conversation.

Meanwhile, unemployment has risen to 6.4%, with the job market softening for Canadian youth in particular.

Immigration Minister Marc Miller told reporters last week new measures to limit population growth are in the works.

“The era of uncapped programs to come into this country is quickly coming to an end,” Miller told Reuters. He earlier said Canada’s immigration system, under the Trudeau government, is “out of control” and “a bit of a mess.”

The latest data from Statistics Canada puts Canada’s population at more than 41 million people.

Ottawa is still on track to accept 485,000 permanent residents in 2024, followed by another 500,000 in 2025 and 2026 each. 

In March, the feds announced it would cap temporary immigration in 2026. Temporary residents amount to more than 2.4 million in the second quarter of 2024, up 700,000 people year over year.

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