Admitting the Temporary Foreign Worker program has been used to circumvent the hiring of Canadian employees, Ottawa is bringing in new rules to reign in the number of foreign workers entering Canada.
Minister of Employment, Workforce Development and Official Languages Randy Boissoneault said the rules will also weed out misuse and fraud in the program.
Statistics Canada reported in August that unemployment for young Canadians and immigrants has increased in recent months.
The changes take effect on September 26.
The new rules will allow the federal government to refuse applications in census metropolitan areas with an unemployment rate of 6 per cent or higher.
That would include the Windsor region, which had a jobless rate of 9.1 per cent in July.
There are exceptions for seasonal and non-seasonal jobs in agriculture, food processing, fish processing, construction and healthcare.
Companies won't be allowed to hire more than ten per cent of their total workforce through the Low-Wage stream of the Temporary Foreign Worker program, exempting agri-food, healthcare, and construction.
The longest duration of employment for those workers will now be one year instead of two.
The federal government adjusted the program during the pandemic to address the labour shortage. Now that conditions have changed, the federal government said it's changing its policies.
"Employers in Canada have a responsibility to invest in the full range of workers available in this country, such as young people, newcomers, and people with disabilities, who are too often an untapped economic resource," said a release from the federal government. "The Government of Canada will continue to work with businesses and organizations to help them find the workers they need and ensure that Canadian workers have the opportunities they deserve."
Ottawa intends to monitor labour market conditions and make more adjustments as needed in the coming months to ensure only those companies with demonstrable needs access the program. It also said it will review the High-Wage Stream within the next 90 days.