Government Reviewing Immigration Streams Amid Spike in Immigrant Unemployment
On Monday, August 26, 2024, Prime Minister Justin Trudeau announced a significant reduction in the number of temporary foreign workers (TFWs) in Canada following what experts describe as a historic surge that has potentially increased unemployment among immigrants and youth.
During the severe post-COVID labour shortage, the government had previously relaxed restrictions, leading to a notable increase in low-wage temporary workers. Moving forward, employers in regions with an unemployment rate of six percent or higher will face restrictions on hiring low-wage TFWs. Exceptions will be made for sectors crucial to food security such as agriculture, food and fish processing, as well as construction and healthcare where acute staffing shortages persist.
In another policy shift, the government declared that employers can no longer hire more than 10 percent of their workforce through the TFW program. Additionally, contracts for low-wage TFWs will be reduced to one year from the current two-year standard.
Future Immigration Levels Plan Will Address Permanent and Temporary Residency
Prime Minister Justin Trudeau revealed that ongoing discussions are taking place regarding immigration and the job market, with plans to introduce an “immigration levels plan” this fall focusing on both permanent and temporary residents.
When asked by CBC News if broader changes to the immigration system might be forthcoming amidst a newcomer unemployment rate of 11.6 percent—substantially higher than the overall national rate of around six percent—Trudeau confirmed that the government would review its overall immigration levels this fall.
Trudeau hinted that a reduction in permanent resident numbers is a possibility and indicated that it could be discussed during this week’s cabinet retreat. According to current immigration projections, Canada is set to admit approximately 485,000 permanent residents in 2024 and 500,000 annually in both 2025 and 2026.
“We’re ensuring that our entire package aligns effectively with the needs of Canadians and our economy,” Trudeau stated. “We’ll continue evaluating unemployment rates and explore opportunities for further adjustments throughout this fall as we develop comprehensive level plans aimed at addressing Canada’s present circumstances and future needs.”
