Canada to restrict low-wage foreign workers, consider lower immigration targets
Prime Minister Justin Trudeau is urging businesses to hire Canadians as his government announces new restrictions to limit the number of low-wage temporary foreign workers in the country.
Ottawa is also considering whether to reduce its annual targets for permanent residency — a potentially major shift in immigration policy for the Liberals.
In response to mounting criticism of the recent influx in temporary foreign workers, the federal government is bringing back pre-pandemic rules that made it harder for businesses to hire low-wage workers from abroad.
Speaking to reporters at the Liberal cabinet retreat in Halifax on Monday, Trudeau said his government loosened the rules to help businesses that were facing labour shortages recover from the pandemic.
But the economic situation is different now, he said, and Canada "no longer needs as many temporary foreign workers."
"We need Canadian businesses to invest in training and technology and 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."
Trudeau said Employment Minister Randy Boissonnault is also looking at making changes to the high-wage stream of the program.
When asked whether the federal government is also considering restricting the number of permanent residents, the prime minister said those were "ongoing conversations."
Immigration Minister Marc Miller, left to right, Employment Minister Randy Boissonnault and Housing Minister Sean Fraser speak to the media at the federal Liberal cabinet retreat in Halifax on Monday, Aug. 26, 2024. (Kelly Clark/The Canadian Press)
Monday's announcement is the latest effort by the Liberals to limit the number of people coming into the country in response to criticism of its immigration policies.
Effective Sept. 26, the government will refuse applications for low-wage temporary foreign workers in regions with an unemployment rate of six per cent or higher.
Employers will be allowed to hire a maximum of 10 per cent of their workforce from the temporary foreign worker program, down from 20 per cent.
Workers hired through the low-wage stream will be able to work a maximum of one year, down from two years.
There will be some exceptions to the rules for specific sectors such as health care and construction.
"To those who would complain about worker shortages, here's my message: there is no better time to hire and invest in Canadian workers," Trudeau said.
Strong population growth over the last couple of years, driven by high immigration, has increased demand for housing and economists say that has worsened affordability.
The temporary foreign worker program has also been criticized for allowing cheap labour into the country at a time when the economy is slowing down.
When the federal government eased restrictions for the program in 2022, Canada had about one million job vacancies across the country and the unemployment rate dipped to a record-low of 4.9 per cent.
Job vacancies have decreased significantly since then and the unemployment rate is climbing as high interest rates restrict economic growth.
In July, the unemployment rate was 6.4 per cent.
Economists have criticized the federal government for maintaining the relaxed rules, arguing that they discourage businesses from investing in innovation and suppress workers' wages.
Mike Moffatt, an economist with the Smart Prosperity Institute who is set to speak to cabinet Tuesday morning about the state of Canada’s middle class, called the move a great first step — "But only a first step."
"Today's changes basically roll us back to where we were in April 2022. I think there's a lot more to do," he said.
Moffatt said there are more streams of foreign workers that could be restricted, adding there’s been a massive increase in high-wage administrative assistants hired from abroad.
"We're moving in the right direction. We're just not doing so far enough or fast enough to address this crisis."
While the Liberal government has defended its decision to loosen the rules, it is now acknowledging that it's time to tighten them again.
According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.
Immigration Minister Marc Miller later echoed Trudeau's comments about potentially lowering the country's targets for permanent residents.
"All options are on the table," Miller said.
"I've heard directly from Canadians about where they see the direction of immigration going, and I think they're asking us to adjust."
Miller said cabinet has not yet discussed lowering immigration targets, but that over the next few weeks it will consider a wide range of options.
Canada is currently set to welcome 500,000 permanent residents in both 2025 and 2026, up from 485,000 this year.
Speaking to reporters on Monday, Conservative deputy leader Melissa Lantsman said the Liberal government's announcement amounted to a reversal of its own policies.
She also attacked Housing Minister Sean Fraser, who was previously responsible for the immigration file.
"Today, they’ve walked back the disastrous policies of Sean Fraser, who at the time was immigration minister, who broke our immigration system and is now responsible for fixing housing. Canadians don’t buy it anymore," Lantsman said.
As immigration minister, Fraser increased permanent resident targets and argued that Canada needed more people to grow the economy and help build more homes.
Historically, there have been no targets for temporary residents and the temporary foreign worker program is overseen by the employment minister.
However, Miller announced in March the federal government will begin including targets for both temporary and permanent residents in its immigration levels plan this fall.
Miller also pledged to decrease the share of temporary residents in the country to five per cent of the population over the next three years.
According to Statistics Canada data, temporary residents represented 6.8 per cent of the population as of April 1.
This report by The Canadian Press was first published Aug. 26, 2024
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Biden delivers remarks following Trump's win
U.S. President Joe Biden delivered remarks to the nation Thursday in what was his first appearance on camera following Donald Trump’s decisive victory over Kamala Harris.
New DNA evidence rewrites long-told stories of people in ancient Pompeii
When a volcanic eruption buried the ancient city of Pompeii, the last desperate moments of its citizens were preserved in stone for centuries.
PM Trudeau revives Canada-U.S. relations cabinet committee after Trump win
Prime Minister Justin Trudeau is reviving a special cabinet committee dedicated to Canada-U.S. relations, following Republican Donald Trump's re-election.
The world's 10 richest people got a record US$64 billion richer from Trump's re-election
Wednesday wasn't just a good day for Donald Trump. The wealth of the world’s 10 richest people also soared by a record amount, according to Bloomberg’s Billionaire Index.
Police in southern Mexico find 11 bodies, including two of minors, dumped by a highway
Police in a southern Mexico region rife with drug cartel violence have found 11 bodies, including two of minors, dumped by a highway, prosecutors in the state of Guerrero said Thursday.
Video shows suspect shooting man inside Markham, Ont. garage
Police have released video footage showing a suspect shooting a man inside a Markham garage in broad daylight on Wednesday afternoon.
Wayne Gretzky, Elon Musk and a few pro golfers: Here's who attended Trump's victory party
U.S. president-elect Donald Trump welcomed a variety of attendees at his victory celebrations in Florida this week, from his family, supporters and political allies to a selection of high-profile figures.
Who ruined Hobo Hot Springs? Ministry investigates as mystery roils Harrison, B.C.
The steaming waters in the Village of Harrison Hot Springs, 130 kilometres east of Vancouver, could once be enjoyed in pools known as the Hobo Hot Springs for free — unlike the neighbouring Harrison Hot Springs Resort where users of its pools must be resort guests.
43 monkeys escape from a South Carolina medical lab. Police say there is no serious danger
Forty-three monkeys escaped from a compound used for medical research in South Carolina but the nearby police chief said there is "almost no danger" to the public.
Local Spotlight
B.C. man discovers 115 stuffed animals hidden behind wall, begins donating them to people around world
As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.
'We put love into it': Group of N.S. women gather to make quilts for those in need
A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.
Vancouver musician lands 'meaningful interaction' with Ed Sheeran after busking outside his show
A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.
10K hand-knit poppies displayed at the Dartmouth Cenotaph
Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.
'I put my whole life on hold': B.C. man embarks on Arctic to Antarctica trek
A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.
Windsor teen's shredded pepperoni pizza post goes viral
A Windsor teen’s social media post showing off a distinctive Windsor pizza topping has gone viral, drawing millions of views worldwide and sparking new curiosity about Windsor-style pizza.
'You look like me': 7-year-old who went viral for his Auston Matthews Halloween costume meets Leafs star
Auston Matthews has come face to face with his look-alike. On Thursday, the Maple Leafs star met seven-year-old Grayson Joseph, who went viral for dressing up as an Auston Matthews hockey card.
'You never know what you're going to find': Halifax junk remover shares some of his company's strangest discoveries
A Halifax junk remover shares some of his company’s strangest discoveries.
'Smiles per gallon': B.C. man creates Canadian-themed art car with stuffed moose on roof
When Leah arrived at work directing traffic around a construction site, she never expected to see a van painted in all sorts of bright colours, and covered in eclectic decorations, including a stuffed moose attached to its roof.