Canada has decided to put stricter regulations on its Temporary Foreign Worker (TFW) Programme starting September 26, 2024. The changes will mainly focus on low-wage positions; the businesses will now be limited to filling only 10% of their workforce with foreign workers, down from the previous 20%. This significant shift has come from 2022, when this cap was increased to tackle labour shortages during the pandemic.
The TFW Programme works as a temporary solution for businesses that are not able to find qualified Canadian workers. This has allowed companies to employ foreign workers on short-term contracts, which typically last for up to two years. Employers must prove their efforts to hire Canadians before turning to foreign labour.
This decision to lower the cap on hiring low-wage foreign workers originated from the increasing unemployment rate in Canada, reaching 6.4%. The rate that is most concerning is for the younger workers, reaching 14.2%. This programme helped issue 240,000 permits in 2023 alone, which is nearly double from 2021. This leads to raising concerns around the availability of jobs for Canadian citizens.
The new rules will introduce the following restrictions:
Randy Boissonnault, Minister of Employment, asserted that these restrictions are to prioritize Canadian workers and make the TFW Programme meet the needs of the Canadian economy.
Wages for a low-wage foreign workforce in Canada differ according to the province and industry. As of 2024, the typical range falls between CAD 13 and CAD 19 hourly. For instance:
Ontario: CAD 16.55 per hour, which will increase to CAD 17.20 per hour on October 1, 2024.
British Columbia: CAD 17.40 per hour from June 1, 2024.
Nunavut: CAD 19.00 per hour as of January 1, 2024
In comparison to the U.S., these wages are slightly higher but lower in countries like the UK, New Zealand, and Australia.
The TFW Programme has come under critical light for fostering worker exploitation. A UN report by Tomoya Obokata has described it as a “”breeding ground for contemporary forms of slavery,” naming underpayment, wage theft, exceeding work hours and other abuses.
The exact number of Indian workers currently in Canada under this programme is unclear but India is most definitely a prominent contributor to this programme. 26,495 Indian nationals participated in 2023.
These restrictions are in place to balance the needs of the Canadian workforce while handling the concerns regarding the exploitation of foreign workers.
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