(Halifax) Prime Minister Justin Trudeau announced Monday a reduction in the number of temporary foreign workers, as his Quebec counterpart François Legault did last week. And he is not ruling out other cuts in immigration, including a reduction in the number of permanent residents.
What you need to know
- The federal government has announced measures to reduce the number of temporary foreign workers.
- They will come into force in a month, on September 26.
- Prime Minister Justin Trudeau has sent a message to businesses: “There is no better time to hire” Canadian workers.
“These are conversations that we are having and that we take extremely seriously,” he said when asked by a reporter.
“This fall, we will present for the first time an immigration plan that not only talks about permanent residents, but also about temporary residents, whether they are foreign workers or otherwise. And we are making sure that it makes as much sense as possible for the needs of Canadians and for the needs of our economy.”
For now, it is reducing access to the Temporary Foreign Worker Program. As of September 26, the government will refuse to process Labour Market Impact Assessments for low-wage positions in census metropolitan areas where the unemployment rate is 6 per cent or higher. There will be exceptions for seasonal or non-seasonal jobs in agriculture and food processing, health care and construction.
The hiring percentage for low-wage positions will drop from 20% to 10% of an employer’s total workforce and their maximum duration will be reduced from two to one year.
An accelerated review
The government is also considering changes to the high-wage jobs component. Prime Minister Trudeau has given Employment and Workforce Development Minister Randy Boissonnault 90 days to conduct an expedited review.
A low-wage position is one that pays below the median wage, which is $27.47 in Quebec. A position is considered high-wage if it exceeds this threshold. The median wage varies from one province to another depending on the cost of living.
So to those who complain about the labour shortage, here is my message: there is no better time to hire and invest in Canadian workers.
Justin Trudeau, Prime Minister of Canada
These changes, added to other measures already announced, should reduce the number of temporary foreign workers “by approximately 65,000 participants,” according to Minister Boissonnault.
PHOTO JUSTIN TANG, CANADIAN PRESS ARCHIVES
Randy Boissonnault, Minister of Employment
The number of temporary foreign workers has seen a sharp increase in the wake of the pandemic after the federal government adjusted the program to address labour shortages.
“And at that time, those changes helped,” Trudeau said. “They helped the economy and businesses get through a difficult period in our economic recovery. But the economy today is very different than it was two years ago. Inflation has started to come down. Employment is higher. We don’t need as many temporary foreign workers anymore.”
Unemployment rate rises
The government notes in a press release that the unemployment rate climbed to 6.4% in June. That’s 1.4 million Canadians looking for work. Bank of Canada Governor Tiff Macklem said in June that the unemployment rate for newcomers was well above that, at 11.7%.
“When we see employers who, despite the changing unemployment rate, are putting forward a significant number of applications to attract workers here for jobs that Canadians could do, we need to change course,” said Minister of Housing, Infrastructure and Communities Sean Fraser.
These changes to the Temporary Foreign Worker Program “could potentially reduce pressure on tens of thousands of homes across the country,” he said.
Minister Sean Fraser also said that the capacity to house permanent residents will be considered in deciding how many Canada can accommodate next year.
The Quebec Employers Council (CPQ) quickly disapproved of the new restrictions to the Temporary Foreign Worker Program since companies “will have little time to adapt” and will have to reapply for a permit for low-wage positions as soon as the one-year permit is granted.
“We understand the intention to prioritize local job seekers and that the severity of the labor shortage has diminished in recent months, but it is also a question of skills and diplomas,” acknowledged CPQ President and CEO Karl Blackburn.
Employers are using the program as a last resort, he added. “Their number one choice is clearly to avoid the paperwork and the procedures that come with it.”
Quebec Premier François Legault and his Immigration Minister Christine Fréchette announced last week that they would limit the number of temporary foreign workers in Montreal by imposing a six-month freeze on the issuance of permits. They also want to introduce a bill to reduce the number of foreign students across Quebec.