In a move that could ripple across the lives of many international students and temporary workers, the Canadian government has announced significant changes to the Temporary Foreign Worker (TFW) Program. The changes, aimed at reducing Canada's reliance on low-wage foreign labor, are expected to impact both current and future international workers in the country.
For many international students, the ability to work while studying in Canada has been a crucial factor in deciding to pursue education in the country. However, with the new restrictions, their ability to secure employment, especially in low-wage sectors, could be severely hampered. This comes at a time when many students are already grappling with high tuition fees, living expenses, and the challenges of adjusting to life in a new country.
On Monday, Prime Minister Justin Trudeau announced a series of stringent measures designed to curb the number of low-wage temporary foreign workers in Canada. This move follows a sharp increase in the reliance on such workers, a trend that has raised concerns about the exploitation of foreign labor and the displacement of Canadian workers.
"Canadian businesses need to invest in training and technology, not just rely on low-cost foreign labor," Trudeau said at a press conference in Halifax. He emphasized that the changes were necessary to ensure fairness for both Canadian job seekers and temporary foreign workers, many of whom have been subjected to poor working conditions.
The new rules, set to take effect on September 26, 2024, will reduce the share of low-wage temporary foreign workers that employers can hire to just 10% of their workforce, down from the current 20%. Moreover, the government will no longer process applications for these workers in regions with an unemployment rate of 6% or higher, except in certain sectors like construction, healthcare, and food security.
The federal government justified these changes by pointing to the rising unemployment rate in Canada, which has climbed to 6.4% as of June 2024. With more Canadians available to work, the government argues that the TFW Program should be a last resort, not a go-to solution for filling low-wage positions.
Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, echoed this sentiment. "The TFW program was designed to address labor market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions," Boissonnault said.
The changes have not been without criticism. Economist Mike Moffatt, who was invited to present at the cabinet retreat, has been a vocal critic of the TFW Program, particularly the low-wage stream. He has called for the program to be dramatically reduced, arguing that it has become a "breeding ground for contemporary forms of slavery."
His concerns were echoed earlier this month by a UN official, who criticized Canada’s TFW Program for fostering conditions akin to modern slavery. The official's report highlighted the increasing allegations of abuse and fraud within the program, prompting Canadian Employment Minister Randy Boissonnault to declare that the "abuse and misuse of the TFW program must end."
Government records show a staggering rise in the approval of temporary foreign worker positions. In 2023, Ottawa approved nearly 240,000 temporary foreign worker positions, more than double the number in 2018. This surge in numbers has been driven by post-pandemic labor shortages, particularly in sectors like accommodation, food services, and agriculture. But as the labor market has started to loosen, the government has begun rolling back the pandemic-era measures that made it easier for employers to hire foreign workers. Starting in October 2023, the validity period of Labour Market Impact Assessments (LMIAs) was reduced from 18 months to 6 months, and the cap on the percentage of temporary foreign workers an employer can hire was slashed from 30% to 20%.
The Canadian government has signaled that further changes to the TFW Program could be on the horizon. Within the next 90 days, a review of the program will take place, potentially leading to more restrictions on the High-Wage Stream and additional measures to crack down on abuse and fraud.
As Canada tightens its immigration policies, the message is clear: the country is prioritizing its citizens and permanent residents for job opportunities. For international students and temporary foreign workers, the road ahead might be tougher than ever before.
These sweeping changes mark a significant shift in Canada's approach to temporary foreign labor, and the effects will likely be felt across various sectors. As the government continues to monitor labor market conditions, it remains to be seen how these policies will evolve and what further impact they will have on those seeking to make a life in Canada.