Canada's temporary foreign worker demand significantly declines

Demand for temporary foreign workers (TFWs) in Canada is falling. This trend comes as new rules and uncertainty about U.S. tariffs create challenges for businesses. Recent government data shows that in the last quarter of 2024, Canada approved 61,392 TFW positions. This is a significant drop from the 81,233 approvals in the same quarter of 2023. Ontario experienced the largest decrease in TFW approvals, dropping from 28,642 to 19,444. The TFW program has been popular with employers, especially in low-wage sectors like agriculture, construction, and hospitality. However, this surge has led to concerns about worker exploitation as unemployment rates rise in Canada. New restrictions introduced in September aim to encourage businesses to hire more Canadian workers. Under these rules, applications for low-wage workers in areas with high unemployment are often denied. Employers can only hire a maximum of 10% of their workforce through this program, though exemptions exist for certain sectors, including agriculture and health care. Economist Jim Stanford noted that the stricter application process is affecting the number of new TFW approvals. Statistics Canada reported that Canada's population growth slowed to a three-year low last year. Although the number of temporary residents increased, it was much lower than in previous years. Experts suggest that the combination of government restrictions and uncertainties about U.S. tariffs will likely keep TFW applications low. Catherine Connelly from McMaster University emphasized that employers might hesitate to hire, as contracts for TFWs require careful planning of hours and needs.