Despite all the concerns, Ottawa’s decision is ultimately the right one – albeit belated
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In response to growing immigration challenges and high youth unemployment, the federal government has finally decided to tighten its Temporary Foreign Worker Program (TFWP).
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Starting September 26, the government will suspend the processing of labour market impact assessments for the low-wage sector of the TFWP in certain census metropolitan areas. This suspension will apply to cities where the unemployment rate is 6% or more, but the exact locations have yet to be announced. While exceptions will be made for sectors critical to food security – such as primary agriculture, food processing and fish processing – the food industry will not be spared from these changes.
Launched in 1973 under the Liberal government of Pierre Trudeau, the TFWP was originally designed to address labour shortages by allowing employers to hire foreign nationals when qualified Canadians or permanent residents were not available.
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Over time, the program expanded to include the “low-skilled worker” category, introduced in 2002 under the Liberal government of Jean Chrétien. This category has since become the backbone of Canada’s temporary foreign workforce. However, many sectors have become overly dependent on this program to fill low-wage jobs, creating systemic problems that should have been addressed long ago.
The decision to reform the TFWP is long overdue. Businesses are now encouraged to invest in productivity improvements, but it is crucial to monitor how these changes impact the entire food supply chain, including the food services sector. The road ahead will not be without challenges.
Restaurants Canada, a key industry group, has already voiced its concerns. The organization points out that while only 3% of food service workers are hired through the TFWP, the program is critical for restaurant operators who struggle to find Canadian workers for certain positions. The new restrictions, which cap the use of temporary foreign workers at 10% across industries and reduce the maximum employment period from two years to one, could significantly impact the food service sector.
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Despite these concerns, Ottawa’s decision is ultimately the right one – albeit belated. It is notable that this move comes from a government that has previously been criticized for its open immigration policy. Not so long ago, any attempt to restrict immigration was often labeled as xenophobic and un-Canadian.
Yet Canada’s current approach to immigration has not delivered the economic benefits many had hoped for.
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While our population continues to grow, GDP per capita has stagnated, leading to what some economists call a “per capita recession.” This discrepancy underscores the need for a more strategic approach to immigration that balances the influx of new citizens with the ability to provide adequate housing and a robust labor market.
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The inconsistency and political rhetoric surrounding these issues is frustrating. The same administration that once expanded immigration without adequate planning is now rolling back the TFWP. At the same time, figures like Mike Moffatt of the Smart Prosperity Institute – a think tank heavily funded by the government – vacillate between advocating for more immigration and advocating for restrictions. Such back and forth only increases the uncertainty facing both businesses and workers.
Temporary expatriate workers are people too, and the companies that hire them need predictability and stability – something that has been lacking in recent years. While the use of cheap labor may keep costs down, it also encourages economic complacency and inefficiency.
The government’s recent changes to the TFWP address a problem of its own making, and it deserves credit for that. But the bigger challenge remains: ensuring that Canada’s immigration and labour market policies work hand in hand to support sustainable economic growth. The food supply chain appears to have been spared the worst for now, but the full impact of these changes will only become clear over time.
— Dr. Sylvain Charlebois is director of the Agri-Food Analytics Lab at Dalhousie University and co-host of the Food Professor Podcast.
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