Prime Minister Justin Trudeau has announced significant policy changes aimed at reducing the number of low-wage temporary foreign workers and potentially scaling back permanent resident admissions. The announcement comes amid growing concerns about unemployment rates, housing shortages, and the capacity of public services to meet the needs of Canada’s rapidly expanding population.
Cabinet Retreat Sparks New Immigration Approach
Trudeau’s decision was made public on Monday during a cabinet retreat dedicated to planning the government’s autumn agenda. The policy shift seeks to address the strain on housing and public services, such as healthcare, brought on by rapid population growth. Last year, immigration accounted for about 97% of Canada’s population increase, a trend that has exacerbated challenges in key areas.
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Economists and critics have highlighted the government’s failure to expand services and housing in tandem with increased immigration levels. As a result, Canada’s unemployment rate has risen to 6.4%, with 1.4 million people currently without work. Trudeau underscored the importance of balancing immigration with job market realities, noting that the existing situation is unfair both to Canadians seeking employment and to temporary foreign workers who are often subjected to exploitation.
Overhaul of the Temporary Foreign Worker Programme
Central to the policy changes is an overhaul of the Temporary Foreign Worker Programme (TFWP). The program allows Canadian employers to hire foreign nationals for temporary positions when qualified Canadians are unavailable. However, it has faced criticism from labor advocates and the United Nations, which recently condemned the program as a “breeding ground for contemporary forms of slavery.” This criticism has been fueled by reports of abuse, underpayment, and exploitation of foreign workers.
Trudeau announced that the government would halt the processing of some work permits in regions where the unemployment rate exceeds 6%, except in sectors with acute shortages such as agriculture, construction, and healthcare. The cap on the proportion of low-wage temporary foreign workers that employers can hire will also be reduced from 20% to 10% of their total workforce. These changes, which take effect on September 26, aim to encourage employers to invest more in training and hiring Canadian workers.
Broader Implications and Future Policy Adjustments
The announcement marks a significant shift in the Liberal government’s immigration stance. In addition to reducing temporary foreign workers, Trudeau hinted at a possible reduction in the number of permanent residents admitted to Canada, a major policy reversal after years of steadily increasing immigration targets. Employment Minister Randy Boissonnault suggested that these changes could bring the number of low-wage foreign workers back to pre-pandemic levels, reducing strain on Canada’s job market.
However, the move has faced criticism from both migrant rights groups and political opponents. Conservative MP Melissa Lantsman accused the government of reversing its “disastrous” immigration policies, while migrant rights advocates argue that the focus on reducing foreign workers is a scapegoat tactic. They claim that the real issues are employer exploitation and systemic racism that fuel high unemployment rates among newcomers.
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Immigration Minister Marc Miller confirmed that “all options are on the table” for reevaluating Canada’s immigration levels. While some analysts argue that scaling back permanent residents could ease pressure on the housing market, others suggest that the impact may be minimal if reductions are modest. The Trudeau administration’s approach signals a potential recalibration of immigration policies to better align with economic and social realities. As Trudeau noted, Canada must remain supportive of immigration but also responsible in ensuring pathways to success for all newcomers.