Canada's temporary foreign worker demand significantly declines

The demand for temporary foreign workers in Canada is falling, according to recent government data. Changes to the federal program and concerns about U.S. tariffs are believed to be the main reasons for this decline. In the last quarter of 2024, Canada approved 61,392 temporary foreign worker positions. This is down from 81,233 in the same period in 2023. Ontario saw the largest drop, falling from 28,642 to 19,444 approved positions. The use of temporary foreign workers has increased in recent years, especially in low-wage sectors like agriculture, construction, and hospitality. However, there have been complaints about the treatment of these workers as unemployment rises in Canada. New rules were introduced in September to help reduce fraud and protect migrant workers. These rules limit how many foreign workers companies can hire, especially in regions with high unemployment. However, sectors like agriculture and healthcare will still be allowed to hire more foreign workers. Experts say these restrictions are affecting the number of new approvals for temporary foreign workers. Jim Stanford, an economist, noted that this trend matches data showing a slowdown in Canada's population growth. Catherine Connelly, a professor at McMaster University, warned that uncertainty about U.S. tariffs may continue to make businesses hesitant to hire temporary foreign workers. Employers need to carefully plan how many workers to bring in, which may lead to further declines in applications.