- Canadian government seeks to reduce use of temporary foreign workers (TFWs).
- Measures include preventing misuse and fraud in the TFW program.
- High levels of immigration have led to a shelter affordability crisis.
The Canadian government is aiming to reduce the reliance on temporary foreign workers (TFWs) as part of a broader strategy to control temporary immigration, which includes those on study permits.
High immigration levels have exacerbated the housing affordability crisis in Canada, putting pressure on Prime Minister Justin Trudeau‘s government.
Canada’s Strategy to Combat TFW Program Misuse and Immigration Challenges
In response to rising immigration levels and their impact on housing affordability, the Canadian government is taking steps to reduce the use of temporary foreign workers (TFWs). The Employment and Social Development Canada (ESDC) has announced intentions to curb the misuse and fraud within the Temporary Foreign Worker Program (TFWP). Minister Randy Boissonnault indicated that new reforms would prevent employers in certain industries from using the program to bypass hiring domestic talent.
The TFWP was initially expanded to address urgent labor market needs following the COVID-19 pandemic. However, with the labor market now stabilizing, the program is being recalibrated to ensure it serves only those employers with legitimate labor shortages. This shift aims to balance the labor market while addressing public concerns about the high number of temporary workers in the country.
Statistics show a significant increase in the number of TFW permits issued. Nearly 190,000 permits were valid by the end of 2023, representing a 157% increase from 2019. This surge has prompted the government to consider stricter measures to control the influx of temporary workers and ensure the program is not exploited by bad actors.
Despite these efforts, the Bank of Canada’s Monetary Policy Report suggests that reducing the share of non-permanent residents (NPRs) to the targeted 5% of the population will take longer than anticipated. NPRs, including international students, temporary workers, and refugees, currently represent a higher percentage of the population, indicating the need for more robust policy measures to achieve the desired reduction.
The Canadian government’s efforts to tighten the Temporary Foreign Worker Program aim to balance the labor market and address immigration-related challenges. By implementing stricter controls and focusing on genuine labor needs, the government hopes to mitigate the impact of high immigration levels on housing affordability and other social issues.
“Bad actors are taking advantage of people and compromising the programme for legitimate businesses. Program.”
