The latest Prime Minister, Mr. Justin Trudeau’s government, is set to open Canada to enhance the temporary foreign workers in a controversial experiment. The experiment aims at easing strains on the overheating economy of the country. On Saturday, the previous week, the federal government decided to ease the limits on hiring low-wage employees from foreign countries. These changes will likely bring in thousands of migrant workers from other countries.
The move also adds an intensive effort to increase immigration, and sets stage for record high levels of job vacancies. The action is mainly happening because the country faces one of the tightest labor markets in years.
Critics warn that such moves will suppress wages and would hurt economy in medium run as well
However, critics warn that these changes will suppress wages and undermine the companies’ incentives to make productivity-enhancing investments. Broadening program is also accused of leaving foreign employees vulnerable to exploitation. The significant challenges are striking a balance between filling the labor market requirements in ensuring that the workers have protection within the program.
Cap to hire temporary workforce in Canada to increase to 20% from present 10%
Currently, the government will also allow employers to enhance the share of their workforce that comes from the temporary foreign worker program if they can show that no employees in Canada want the jobs. In sectors like manufacturing, retail food services, and hotels suffering from significant labor shortages, the cap will increase 230 PC of the workforce, especially for the low wage positions. For other sectors, the cap will increase to 20 PC. Both the limits are genuinely rising from 10 PC as of now.
Also Read – Self Employed Canada Immigration Streams
The new terms and conditions generally add to the changes implemented earlier this month that permanently remove the foreign worker caps on the seasonal industries like seafood processing while allowing the workers to stay longer in Canada.
Falling unemployment rate in Canada major reason for easing rules for Temporary Foreign Workers
With the unemployment rate falling since the previous month to the lowest since at least the mid-1970s, the balance of the foreign worker program comes as employers nationwide challenge to find the staff. The lack of available employees stocking the inflation is one of the significant reasons the Bank of Canada is running behind in getting rid of inflation with aggressive interest rate hikes. Since September, the overall employment in Canada rose by 2.4 PC outpacing the 0.8 PC. There is also an increase in the work population that highlights the potential imbalance between the demand and supply of labor as per Statistics Canada.
Overall, the employment gains in the nation come from the workers not born in the country over the past decade. The Canadian meat council vice president said that there is nobody to higher now. Various factors are facing the same dilemma currently. However, Canada’s regular immigration system is already reeling under the ambitious objectives that force the government to allocate a lot of money to process and settle permanent residents. Prime Minister has also pledged to bring at least 1.3 million newcomers over the next few years.
Easing of hiring of non immigrant work force in Canada to help International Students and non-immigrant work force
Currently, the temporary worker program represents a minimum share of the country’s non-immigrant labor force. It totals around 6,00,000 people working as international students and other international worker programs.