How Canada's new policy for temporary workers may impact Indians
Canadian Prime Minister Justin Trudeau has announced a significant shift in the country's immigration policy, aimed at reducing the number of low-wage, temporary foreign workers and permanent residents. This move marks a departure from the program expansions initiated in 2022 that allowed foreign students to work full-time. The new policy is set to take effect on September 26 and is expected to impact Indians significantly.
Policy change in response to rapid population growth
The policy change comes as Canada grapples with rapid population growth, which economists suggest is straining housing and public services like healthcare. Federal statistics show that approximately 97% of last year's population increase was driven by immigration. The temporary foreign worker program, which allows non-Canadians to work for limited periods to address labor shortages, has faced criticism for low wages and worker exploitation. A United Nations report this month labeled the program a "breeding ground for contemporary forms of slavery."
Temporary foreign worker program faces criticism
Underpayment and wage theft, as well as physical, mental, and verbal abuse, were among the problems cited. According to the report, workers also struggle to access healthcare. In 2023, approximately 183,820 temporary foreign worker permits were issued, marking an 88% rise compared to 2019. The program, originally intended to fill labor shortages, has grown dramatically—from 15,817 in 2016 to 83,654 in 2023, largely as a result of policy expansions in 2022.
New changes to work permits and hiring practices
Now, under the new policy, work permits will be denied in areas where the unemployment rate is at or above 6%, with exceptions for sectors like seasonal agriculture, construction, and healthcare. The maximum employment duration for low-wage workers will be reduced from two to one year. In a press release, the Government of Canada said it will introduce further adjustments to the program as needed to ensure that only employers with demonstrable labour market needs have access to the program.
Impact on Indians in Canada
Employers will also be limited to hiring low-wage temporary foreign workers as 10% of their workforce, reduced from the current 20%. India contributed 26,495 temporary foreign workers to Canada in 2023 under the Temporary Foreign Worker Program (TFWP), making it one of the top 10 countries of origin for these workers. Between July and October 2022, the Canadian government processed 146,000 new study permit applications but during the same period in 2023, this number fell to just 87,000.
