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.

Trudeau also said the government is considering a reduction to the number of permanent residents Canada accepts each year — a potentially major policy change after years of increasing immigration levels on the Liberal government's watch.

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

«We need Canadian businesses to invest in training and technology, not increasing their reliance on low-cost foreign labour,» Trudeau said.

«It's not fair to Canadians struggling to find a good job, and it's not fair to those temporary foreign workers, some of whom are being mistreated and exploited.»

Employment Minister Randy Boissonnault acknowledged there's more slack in the job market now than there was when the country emerged from the pandemic with huge gaps in the labour market.

According