Canada curbs its temporary foreign worker program – what is the fall out on India’s diaspora?

The writing was on the wall. In March, Canada’s immigration minister, Marc Miller, had pointed out that the country’s temporary resident population had grown rapidly, reaching up to 2.5 million (6.2% of the total population).
While he had acknowledged the role of temporary foreign workers, especially those who are filling job vacancies in critical industries like construction workers, early childhood educators and health care professionals, in the same breath he had pointed at the need “to make the system more efficient and sustainable.”
It was announced that starting fall (Sept), Canada will place limits on the number of ‘temporary residents’ that it will admit.Till date, annual targets were set only for permanent residents who have a pathway to Canadian citizenship.

On Aug 26, Randy Boissonnault, Canada’s Minister of Employment, Workforce Development and Official Languages announced that given current labour market conditions, and to further reduce the reliance of Canadian employers on the Temporary Foreign Worker Program (TFWP), the following changes will be implemented. These come into effect from Sept 26.
1.
Canada will not process LMIA applications in the low-wage stream, applicable in metro areas with an unemployment rate of 6% or higher.
Canada must obtain an LMIA before taking steps to hire foreign workers. The LMIA establishes that they have taken steps to recruit Canadians and that employing the foreign national in Canada would be beneficial to the labour market.
According to immigration experts that TOI spoke to, this restriction (which incidentally was in place pre-pandemic and was lifted in April 2022) could mean that business entities in some popular destinations for Indian TFWs such as Toronto, Ottawa, Calgary and Edmonton could be impacted.
However, the announcement states that exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as construction and healthcare.
2.:
This maximum employment percentage will be applied to the low-wage stream. Exceptions will be granted for seasonal and non-seasonal jobs in food security sectors (primary agriculture, food processing and fish processing), as well as healthcare and construction.
3.
In other words, the policy allowing employers to hire workers for low-wage positions for up to two years will end on Sept 25, 2024, and the maximum duration of employment will be reduced to one-year effective Sept 26, 2024. The announcement states that employers in Canada have a responsibility to invest in the full range of workers available in this country, such as young people, newcomers, and persons with disabilities, who are too often an untapped economic resource in Canada. They must also invest in retraining or upskilling to ensure that those they currently employ can adapt to the economy of the future.
The announcements come in the wake of rising unemployment trends. Minister Boissonnault stated, ““The TFWP was designed to address labour market shortages when qualified Canadians were not able to fill those roles. Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy.”
It should be noted that Quebec has its own immigration laws and procedures. On Aug 20, Canada approved a proposal by Quebec for a temporary freeze on the approval of new TFWs in the low-wage stream in Montreal. These announcements made soon thereafter apply to the rest of Canada.
A statement outlining the announcement states that Canadian government will continue to work with business and organizations to help them find the workers they need and ensure that Canadian workers have the opportunities they deserve, by providing supports for training and education.
The government will continue to monitor labour market conditions and introduce further adjustments to the TFWP as needed in the coming months to ensure that only employers with demonstrable labour market needs have access to the Program.
There is more to come. Within the next 90 days, further review will be undertaken of the Program, which could result in changes to the high-wage stream, to existing LMIA applications for which positions have not been filled, to sectoral exceptions, or refusing to process other LMIA applications, including for rural areas.
According to a newsletter issued by Fragomen, a global immigration law firm, Canadian employers in sectors with low-wage positions will need to better manage their labour needs, may have reduced flexibility to hire foreign nationals for certain positions and may need to fill more vacancies with Canadian citizens, permanent residents or those already in Canada holding open work permits (those that allow foreign nationals to work independently or for most employers in Canada). The exception for food, construction and healthcare sectors will address current job vacancies across these areas, which are still experiencing labour shortages.
Between 2018-2023, the demand for TFWs in certain sectors had shot up. The top three sectors (as per occupation codes) were: Nurse aides, orderlies and patient service associates; Food counter attendants, kitchen helpers and related support occupations; and Construction trades helpers and labourers.
In 2023, Mexico was the largest country of origin of TFWP permit holders with 45,500 permits for Mexican people becoming effective in that year. India with 26,495 and Philippines with 20,635 were the second and third largest countries of origin.
Immigration experts point out that Indian TFWs are largely engaged in truck-driving, restaurant industry, agriculture and as caregivers. Only a few of these sectors remain exempt from the new restrictions.
Migrant Workers Alliance for Change, which is a significant migrant-led organization, uniting migrant farmworkers, care workers, fishery workers, current and former international students, and undocumented individuals to advocate for employment and immigration justice has issued a statement in response to these announcements.
It points out that: