
The Decibel
Why Canada is cutting back on temporary foreign workers
Aug 29, 2024
Matt Lundy, an economics reporter for The Globe, delves into Canada's recent decision to cut back on temporary foreign workers. He highlights a dramatic increase in foreign worker permits and the government's aim to reverse these pandemic-era changes. Lundy discusses the implications for businesses, especially those that rely on low-wage labor, and raises concerns about workers' rights amidst stricter regulations. Additionally, he examines how this decision intertwines with broader immigration policy shifts and the ongoing debates about economic growth in Canada.
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Quick takeaways
- Canada is reducing the number of low-wage temporary foreign workers to prioritize local job seekers amid rising unemployment rates.
- The government faces scrutiny over previous expansion of the program, which critics argue failed to address essential labor shortages.
Deep dives
Changes to the Temporary Foreign Worker Program
Recent changes to Canada's Temporary Foreign Worker (TFW) program include stricter hiring guidelines for employers relying on the low wage stream. Employers will now be limited to hiring only 10% of their staff through this stream, down from 20%, which reverts to pre-2022 rules. Additionally, the government will prevent hiring from the low wage stream when local unemployment rates are at 6% or higher, affecting many workers in sectors like fast food and hospitality. These adjustments aim to prioritize local job seekers and reduce overreliance on foreign labor in a changing job market.
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