Trudeau announces reduction in temporary foreign workers, suggests more immigration changes to come

Prime Minister Justin Trudeau announced Monday the federal government will reduce the number of temporary foreign workers in Canada after a historic surge that some experts say has fuelled unemployment among immigrants and young people.

The government loosened restrictions during a severe post-COVID labour shortage — a decision that led, in particular, to a spike in the number of low-wage temporary workers.

Trudeau said employers in high unemployment areas — places where the unemployment rate is six per cent or higher — will not be able to hire low-wage temporary foreign workers (TFWs), with limited exceptions for "food security sectors" like agriculture and food and fish processing as well as construction and health care where acute staffing shortages still exist.

In another reversal, the government said employers will no longer be allowed to hire more than 10 per cent of their total workforce through the TFW program.

As well, low-wage TFWs will also be limited to one-year contracts, down from the current two.

Asked by CBC News if the government is considering broader changes to the immigration system at a time when the Bank of Canada has pegged the "newcomer" unemployment rate at 11.6 per cent — substantially higher than the overall unemployment rate of roughly six per cent — Trudeau said the government is going to review its overall immigration levels this fall.

Asked if a reduction in the number of permanent residents is on the table, Trudeau suggested it's a possibility and said that topic could be discussed at the cabinet retreat this week.

According to the government's immigration plan, the country is expected to admit about 485,000 permanent residents in 2024 and 500,000 in both 2025 and 2026.

"We're making sure that the entire package makes as much sense as possible for the needs of Canadians and for the needs of our economy," Trudeau said.

"We'll be looking at unemployment rates and opportunities to make further adjustments over the course of this fall as we come forward with comprehensive level plans that will respond to the reality that Canada's facing now and in years and decades to come," he said.

He said immigration needs to be "done right," and that changes may be forthcoming so that "Canada remains a place that is positive in its support for immigration but also responsible in the way we integrate and make sure there's pathways to success for everyone who comes to Canada."