Prime Minister Justin Trudeau announced a cut in temporary foreign workers to address rising unemployment among immigrants and youth, aiming to balance the labor market in Canada.

Trudeau also mentioned that the government is considering a reduction in the number of permanent residents accepted each year, a major policy change after years of increasing immigration levels. The decision to loosen temporary foreign worker restrictions during a post-COVID labor shortage led to a spike in the number of low-wage workers, particularly in high unemployment areas.

As a result, the government announced that employers in these areas will not be able to hire low-wage temporary foreign workers, with some limited exceptions. The government also stated that employers will no longer be allowed to hire more than 10% of their total workforce through the TFW program. Additionally, low-wage TFWs will be limited to one-year contracts, down from the current two years.

Employment Minister Randy Boissonnault acknowledged that there is more slack in the job market now than when the country emerged from the pandemic, with high unemployment rates among immigrants and young people. The low-wage TFW sector has rapidly increased over the years, admitting workers in various sectors. The government's changes are expected to reduce the number of low-wage TFWs by about 65,000, bringing the number to pre-pandemic levels.

The decision to reduce the number of low-wage TFWs has been met with mixed reactions. While some experts believe it is a good first step, others argue that more needs to be done. Additionally, a migrant rights group criticized the move, stating that high unemployment, low wages, and unaffordable housing are not caused by immigrants and migrants but by employer exploitation and policy failures. In response to concerns about the unemployment rates and the impact of immigration on the economy, Trudeau stated that the government will review its immigration levels and consider making further adjustments.

Immigration Minister Marc Miller also mentioned that "all options are on the table" when it comes to addressing immigration levels. While some experts believe that reducing the number of permanent residents could alleviate some pressure on the housing market, others believe that reducing other forms of non-permanent residents could have a more meaningful impact on the number of people coming to Canada and the resulting side effects.

Source: Canada.ca