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Canadian Government to Reduce Temporary Residents

Posted on 19/09/2024

The Canadian government is reducing the flow of temporary workers and of international students in response to weaker labour markets and concerns about the availability of housing and healthcare. Let’s see what the numbers are and what further actions they might take.

The goal is to reduce the number of temporary residents in Canada (temporary workers and international students) from 6.5% of the population to 5% of the population by 2026. Given that Canada’s population reached 41 million in early 2024, this means reducing temporary residents in Canada from over 2.5 million down to just over 2 million over the following 2 years. Keep in mind, however, that this is a very broad goal which may or may not be achieved.

Here’s how the government plans to reduce the number of temporary residents.

Temporary Foreign Workers

  • Employers who hire foreign temporary workers will be subject to greater scrutiny with inspections to ensure that foreign workers are not being exploited or used to avoid hiring qualified Canadian citizens or permanent residents.
  • Labour Market Impact Assessments will be subject to greater oversight and fees for LMIAs may be raised.
  • The government is considering raising the requirements for a business to be eligible for the Temporary Foreign Worker Program – for example increasing the number of years of business operation required as well as looking at the company’s history of lay-offs.
  • Canada has ended the temporary policy of allowing visitors to apply for a work permit from inside Canada. The policy was put in place in August of 2020 in response to travel restrictions due to COVID and was ended on August 28, 2024. Applications submitted before that date will continue to be processed.

International Students

  • Study permits will be reduced by about 500,000 from current levels down to around 437,000 for 2025 and maintained at that level for 2026.
  • As we mentioned in a previous blog, Designated Learning Institutions (DLIs) since December 2023 have had to verify directly with IRCC each acceptance letter an international student receives and submits as part of their application for a study permit.
  • A label of “recognized institution” will be applied by IRCC to DLIs that meet high standards of services and support for international students.
  • The financial requirements for international students have been increased.
  • Only spouses of international students in masters, doctorate, or professional programs will be eligible for open work permits.
  • The Post-Graduate Work Program has been tightened up with colleges that offer public-private programs through curriculum licensing arrangements no longer eligible to be part of the PGWP.
  • Any international student wishing to change schools will have to now apply for a new study permit.
  • The weekly allowed hours for international students to work off-campus have been cut back.
  • An agreement with the United States has resulted in a sharp drop in irregular asylum claims.
  • Mexican visitors now require a partial visa to visit Canada, as they accounted for a proportionately large percentage of asylum claims in Canada in 2023.

Clearly, these are broad policy goals and we’ll have to wait for the government and the various agencies and departments (IRCC, ESDC, & CBSA) to provide more details on how these new policies will be implemented. What is clear is that immigration officials have been given the go ahead to be more stringent when reviewing applications and to be on the lookout for possible fraud, especially with asylum seekers and with employers using the TFW program. Stay tuned for more updates as this story develops.

Posted in News Tips and tagged Study Permit, Work Permit

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