While he had acknowledged the role of temporary foreign workers, especially those who are filling job vacancies in critical industries like construction workers, early childhood educators and health care professionals, in the same breath he had pointed at the need “to make the system more efficient and sustainable.”
It was announced that starting fall (Sept), Canada will place limits on the number of ‘temporary residents’ that it will admit.Till date, annual targets were set only for permanent residents who have a pathway to Canadian citizenship.
Restrictions on use of Temporary Foreign Workers:
On Aug 26, Randy Boissonnault, Canada’s Minister of Employment, Workforce Development and Official Languages announced that given current labour market conditions, and to further reduce the reliance of Canadian employers on the Temporary Foreign Worker Program (TFWP), the following changes will be implemented. These come into effect from Sept 26.
1.
Refusal to process Labour Market Impact Assessments (LMIA) in certain cases:
Canada will not process LMIA applications in the low-wage stream, applicable in metro areas with an unemployment rate of 6% or higher.
Canada must obtain an LMIA before taking steps to hire foreign workers. The LMIA establishes that they have taken steps to recruit Canadians and that employing the foreign national in Canada would be beneficial to the labour market.
According to immigration experts that TOI spoke to, this restriction (which incidentally was in place pre-pandemic and was lifted in April 2022) could mean that business entities in some popular destinations for Indian TFWs such as Toronto, Ottawa, Calgary and Edmonton could be impacted.
However, the announcement states that exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare.
2.
Employers will be allowed to hire no more than 10% of their total workforce through the TFW Program
:
This maximum employment percentage will be applied to the low-wage stream. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as healthcare and construction.
3.
The maximum duration of employment for workers hired through the low-wage stream will be reduced to one year (from two years):
In other words, the policy allowing employers to hire workers for low-wage positions for up to two years will end on Sept 25, 2024, and the maximum duration of employment will be reduced to one-year effective Sept 26, 2024. The announcement states that employers in Canada have a responsibility to invest in the full range of workers available in this country, such as young people, newcomers, and persons with disabilities, who are too often an untapped economic resource in Canada. They must also invest in retraining or upskilling to ensure that those they currently employ can adapt to the economy of the future.
The announcements come in the wake of rising unemployment trends. Minister Boissonnault stated, ““The TFWP was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy.”
It should be noted that Quebec has its own immigration laws and procedures. On Aug 20, Canada approved a proposal by Quebec for a temporary freeze on the approval of new TFWs in the low-wage stream in Montreal. These announcements made soon thereafter apply to the rest of Canada.
A statement outlining the announcement states that Canadian government will continue to work with business and organizations to help them find the workers they need and ensure that Canadian workers have the opportunities they deserve, by providing supports for training and education.
The government will continue to monitor labour market conditions and introduce further adjustments to the TFWP as needed in the coming months to ensure that only employers with demonstrable labour market needs have access to the Program.
There is more to come. Within the next 90 days, further review will be undertaken of the Program, which could result in changes to the high-wage stream, to existing LMIA applications for which positions have not been filled, to sectoral exceptions, or refusing to process other LMIA applications, including for rural areas.
According to a newsletter issued by Fragomen, a global immigration law firm, Canadian employers in sectors with low-wage positions will need to better manage their labour needs, may have reduced flexibility to hire foreign nationals for certain positions and may need to fill more vacancies with Canadian citizens, permanent residents or those already in Canada holding open work permits (those that allow foreign nationals to work independently or for most employers in Canada). The exception for food, construction and healthcare sectors will address current job vacancies across these areas, which are still experiencing labour shortages.
Between 2018-2023, the demand for TFWs in certain sectors had shot up. The top three sectors (as per occupation codes) were: Nurse aides, orderlies and patient service associates; Food counter attendants, kitchen helpers and related support occupations; and Construction trades helpers and labourers.
In 2023, Mexico was the largest country of origin of TFWP permit holders with 45,500 permits for Mexican people becoming effective in that year. India with 26,495 and Philippines with 20,635 were the second and third largest countries of origin.
Immigration experts point out that Indian TFWs are largely engaged in truck-driving, restaurant industry, agriculture and as caregivers. Only a few of these sectors remain exempt from the new restrictions.
Migrant Workers Alliance for Change, which is a significant migrant-led organization, uniting migrant farmworkers, care workers, fishery workers, current and former international students, and undocumented individuals to advocate for employment and immigration justice has issued a statement in response to these announcements.
It points out that:
- Restricting low-wage temporary foreign worker work permits to one year will mean workers will have to leave the country and pay vast sums of money to return.
- Higher unemployment is caused by a shrinking economy. High immigrant unemployment is a result of racism and discrimination – immigrants are always the last hired, first fired. Most immigrants are in low-wage jobs that are no longer entry-level positions because of lack of opportunities for re-training, accreditation and skills matching.
- Most migrants live in employer-controlled housing, in cramped sub-standard conditions, and in student residences. The low wages they are paid, and skyrocketing rents mean migrants are barely able to afford housing, not competing to buy single-family homes.
- Rent is set by speculators and landlords, not by demand, and has been allowed to skyrocket because provinces have waived rent controls.
- Wages are low because provinces have kept minimum wages low and won’t rein in employers who have refused to raise wages despite making record profits.
- At least 50% of Canada’s GDP growth is a result of temporary and permanent immigration – slashing immigration will result in greater unemployment.
- The United Nations Special Rapporteur on Contemporary Forms of Slavery was right when he said “the recent policy shift to reduce the number of temporary residents will not address the challenges faced by those who continue to enter through the same program.”
- Linking immigration and unemployment and affordability will increase xenophobia and racism.
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