In a bold move to reduce its reliance on low-wage, temporary foreign workers (TFWs), Canada is taking steps to slow down the growth of this program. The Government of Canada recently announced a freeze on processing TFW applications in regions with high unemployment rates. Despite rising unemployment levels, the program has experienced a staggering 300% increase in annual volumes over the past five years, with the first quarter of 2024 alone surpassing the total for all of 2018.
Changes to Canada’s Low-Wage TFW Program
- Temporary Freeze in Major Cities:
Starting September 26, 2024, Canada will halt the processing of TFW applications in census metropolitan areas (CMAs) with unemployment rates of 6% or higher. Additionally, sponsoring companies will be limited to having 10% or fewer employees from the TFW program, and the approved term will be shortened from two years to one. - Extension of Policy:
Following a similar policy implemented in Quebec, the Government of Canada has extended the restrictions on low-wage TFWs to all CMAs across the country. It’s important to note that not all cities are classified as CMAs, which could potentially create new issues in the future.
Understanding Census Agglomerations (CAs):
– A CMA is a multi-city region with at least 100,000 residents and a shared economic zone, encompassing 41 regions in Canada, including Toronto and Vancouver.
– Census Agglomerations (CAs) consist of regions with over 10,000 people but fewer than 100,000, such as Prince George (BC), Cape Breton (NS), Kawartha (ON), and Grand Prairie (AB). These areas, along with rural regions, are not currently affected by the TFW restrictions.
The Surge of Low-Wage Foreign Workers in Canada
- The use of Canada’s TFW low-wage stream has seen a significant increase in recent years, with a 7% rise to 83,654 workers in 2023.
- Quebec emerged as the primary destination for low-wage TFWs, receiving 25,499 workers in 2023, followed by Ontario, Alberta, and BC.
- In the first quarter of 2024, there was a notable shift in TFW distribution, with BC and Alberta attracting more workers than Ontario, possibly indicating a migration trend in search of better opportunities.
Addressing Criticisms and Concerns
Canada’s TFW program, originally intended to fill vacant job roles in hard-to-access areas, has faced criticism for its rapid expansion and impact on domestic workers and immigrants.
Recent concerns have labeled the program as “modern slavery,” highlighting the lack of rights for TFWs and their dependence on employers for residency.
While Canada is not abolishing the low-wage TFW program entirely, the temporary freeze in major metropolitan regions aims to address the program’s negative effects on the labor market.
As Canada takes steps to curb its reliance on low-wage TFWs, it’s crucial to consider the implications of these changes and work towards a more sustainable and equitable workforce. By implementing these measures, Canada can strive to create a more balanced and inclusive labor market for all workers.
