TORONTO – The government of Canada is all set to discourage the entry of temporary foreign workers as accusations of fraud and worker exploitation increase.
The country, now facing a housing crisis, is starting to implement new restrictions on the program that allows businesses to hire temporary foreign workers; the program helped businesses to plug the labor shortage.
In this regard, Employment Minister Randy Boissonnault met with business representatives on Tuesday and promised tougher oversight, particularly in “high-risk” industries.
The minister also hinted at the possibility of banning certain sectors from using the program for low-wage positions altogether.
Prime Minister Justin Trudeau’s government had significantly expanded the program in 2022 and the proportion of workers companies could hire under this scheme was increased to 20%.
Though the program favored aspiring immigrants, it came under fire due to multiple reasons including unemployment which has climbed to 6.4%, surpassing pre-pandemic levels.
As the labor market conditions have shifted after the arrival of immigrants, the government looks forward to tightening the conditions, Bloomberg reported.
Immigration Minister Marc Miller has already started tightening the rules for the foreign-worker program earlier this year, committing to setting an overall cap on the number of temporary residents, including students.
Media reports imply that the 20% hiring cap will not be reduced, but the government plans to enforce it more consistently.
Meanwhile, the government is considering increasing the $1,000 fee for employers applying to hire foreign workers and may impose eligibility criteria, such as requiring businesses to have been operating for a minimum number of years.
It is to be highlighted that like Australia and the UK, the Canadian government has already started implementing measures to address the situation of immigrants and discourage newcomers including students from coming to the country.
In January, the government announced a two-year cap on international students. In March, the immigration minister introduced Canada’s first-ever cap on temporary immigration, aiming to reduce temporary residents’ entry.
Canada has long been known for its welcoming stance towards newcomers and immigrants, with the incumbent Liberal government significantly increasing the influx of new residents, particularly temporary ones, to address labor shortages following the pandemic.
On the flip side, over the past year, sentiment has shifted, with immigrants being blamed for worsening the housing crisis and affordability issues in the country. Critics argue that the federal government has permitted an excessive number of new arrivals.
