On August 26, 2024, Canadian Prime Minister Justin Trudeau announced a policy to “reduce the number of low-wage, temporary foreign workers” in the country. This policy aims to decrease the proportion of such workers from 6.2% of the population in 2023 to 5% over the next 3 years.

WHO ARE THE TEMPORARY WORKERS?

  • Temporary Work Visa Holders: Individuals employed in Canada for a fixed term, typically earning between CAD 13-19 per hour (approx Rs 800-1,200 per hour).
  • International Students: Students who stay in Canada post-graduation on work visas ranging from one to three years while applying for Permanent Residency (PR). They are also permitted to work within restrictions during their studies.
  • Spouse Open Work Permit Holders: Spouses of international students who are allowed to work in Canada under this permit, often in low-wage jobs.
  • Labour Market Impact Assessment (LMIA) Workers: Foreign workers hired when Canadian employers cannot find local candidates to fill positions.
  • Special Humanitarian Pathways Arrivals: Includes those under CUAET (Canada-Ukraine Authorization for Emergency Travel), asylum-seekers, and participants in reciprocal youth programs.
HOW WILL THIS POLICY IMPACT INDIANS? Canada’s decision to reduce low-wage, temporary foreign workers is likely to have significant implications for Indians, who have been a major part of this workforce. Key impacts include:
  • International Students: Indians make up around 40% of Canada’s international student population. Restrictions on temporary workers could limit opportunities for Indian students and their spouses, affecting their income and prospects of transitioning to Permanent Residency.
  • Punjab Impact: More than 50% of Indian arrivals, including students and low-wage workers, come from Punjab. The policy change is likely to disproportionately affect individuals from this state, who rely heavily on temporary work opportunities.
  • Policy Changes: Until recently, Canada had no caps on international students or Spouse Open Work Permits. New restrictions, including recent caps and a shift in policy focus, are expected to limit these opportunities.

BROADER IMPLICATIONS

  • Economic Contribution: Temporary workers play crucial roles in sectors such as construction, early childhood education, and healthcare. The reduction in their numbers could impact these industries, potentially creating labor shortages.
  • Pathway to Permanent Residency: Canada’s Minister of Immigration, Refugees, and Citizenship, Mark Miller, emphasized the need to make the system more efficient. This could involve providing clearer pathways to Permanent Residency for temporary workers, which might mitigate some negative impacts.
  • Policy Directions: The policy could evolve in 2 directions:
    • Restrictions: Limiting the entry of new temporary workers and not extending work visas for those already in Canada.
    • Opportunities for PR: Offering more opportunities for temporary workers to transition to Permanent Residency, thus integrating them into the Canadian economy more fully.