Ottawa considers changes to reduce number of temporary foreign workers in Canada

The federal government is considering new regulations that could make fewer employers eligible to hire temporary foreign workers, employment minister Randy Boissonnault said Tuesday.

Following a meeting with a group of business associations, the minister announced a suite of changes he plans to pursue to reduce the number of such workers in Canada.

Boissonnault told the group that the temporary foreign worker program cannot be used to circumvent hiring Canadian workers, a news release said.

The minister outlined ways in which the government may restrict eligibility for the program, including looking at how long a business has operated and whether it has a history of layoffs.

Boissonnault warned there will also be more rigorous oversight in areas with a high risk for fraud, and said he is considering increasing fees associated with the program.

“I’ve been clear over the last year; abuse and misuse of the temporary foreign worker program must end,” he said in a statement.

The temporary foreign worker program came under renewed scrutiny as businesses ramped up their participation in the aftermath of the COVID-19 pandemic.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

Economists have raised concerns that making it too easy to bring in temporary foreign workers can hinder wage growth domestically and discourage businesses from investing in productivity-enhancing technology.

The massive increase in the number of temporary residents in recent years has also been blamed for a Canada-wide crunch on available housing.

The proposed changes also come months after Boissonnault and immigration minister Marc Miller announced plans to reduce the number of temporary residents in Canada to five per cent over the next three years.

The latest population estimate from Statistics Canada suggested that, as of April 1, temporary residents made up 6.8 per cent of the population.