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Canada to Slash Low-Wage Temporary Foreign Workers

Prime Minister Trudeau announces significant cuts to the program, citing changes in the labor market and rising unemployment.

Justin Trudeau, Canada's prime minister, during a news conference at a cabinet retreat in Halifax, Nova Scotia, Canada, on Monday, Aug. 26, 2024. Canada will impose new tariffs on Chinese-made electric vehicles, aluminum and steel, lining up behind western allies and taking steps to protect domestic manufacturers. Photographer: Dean Casavechia/Bloomberg via Getty Images
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Overview

  • The government will reduce the cap on low-wage temporary foreign workers from 20% to 10% of a company's workforce.
  • Employers in regions with unemployment rates above 6% will be restricted from hiring low-wage temporary foreign workers.
  • The maximum employment term for low-wage temporary foreign workers will be reduced from two years to one.
  • Exemptions will be made for sectors like agriculture, food processing, construction, and healthcare.
  • The changes aim to alleviate unemployment among Canadian youth and immigrants.