The government aims to lower the proportion of temporary residents to 5% of the population, down from the current 6.2%, as part of its strategy to stabilize the housing market and ensure sustainable economic growth
Canadian Prime Minister Justin Trudeau has announced a significant policy shift aimed at reducing the number of low-wage and temporary foreign workers in Canada. This decision, revealed on August 26, 2024, is expected to have a substantial impact on the Indian community, which forms a large portion of the foreign workforce in the country.
Trudeau emphasized that the current labor market conditions necessitate this change, urging businesses to prioritize hiring Canadian workers and youth. “We’re reducing the number of low-wage, temporary foreign workers in Canada. The labor market has changed. Now is the time for our businesses to invest in Canadian workers and youth,” Trudeau stated in a social media post.
This move is part of the Canadian government’s broader strategy to address the surge in temporary immigration that has significantly increased since the COVID-19 pandemic. The number of temporary residents in Canada has grown from nearly 1 million in 2021 to 2.5 million in 2024. In light of this, the government is also contemplating reducing the number of permanent residents admitted into the country.
Immigration Minister Marc Miller announced plans to reduce the number of temporary residents over the next three years, starting with a cap in September 2024
According to the Ministry of External Affairs, approximately 2.9 million Indians, including over 1.8 million Persons of Indian Origin, currently reside in Canada. This population may feel the impact of the new immigration policy, especially those working in low-wage and temporary jobs.
The decision to limit foreign workers is also driven by Canada’s ongoing housing crisis. The rising cost of housing and limited availability have overshadowed other issues such as employment and environmental concerns. In an effort to address this, the government has been focusing on reducing the influx of international workers and students.
Earlier in 2024, Canada imposed a two-year cap on new international student visas to tackle the housing shortage and target institutions engaging in exploitative practices. Furthermore, Immigration Minister Marc Miller announced plans to reduce the number of temporary residents over the next three years, starting with a cap in September 2024.
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