Business groups across Canada are expressing growing concern over recent policy changes that aim to reduce the number of migrant workers entering the country. These changes come at a politically sensitive time, as Prime Minister Justin Trudeau’s government faces declining poll numbers ahead of a federal election expected next year.
While the government says the reforms are necessary to manage population growth and integration challenges, business leaders warn that the new rules could hurt the economy by worsening labor shortages especially in critical sectors.
Why Is Canada Changing Its Foreign Worker Program?
This week, Prime Minister Justin Trudeau announced changes to Canada’s Temporary Foreign Worker Program (TFWP) in response to mounting public criticism of immigration levels.
Speaking to reporters, Trudeau said the government is reviewing “different migration streams” to ensure that Canada remains welcoming to immigrants while being “responsible in how we integrate and create pathways for success.”
Trudeau, long known for championing open immigration including welcoming Syrian refugees at Toronto airport in 2015 has recently shifted tone amid growing concerns about housing affordability, healthcare strain, and job competition for young Canadians.
Public Pressure and Political Opposition
Immigration has become a central political issue in Canada:
Rising living costs and housing shortages have intensified public scrutiny.
Healthcare systems are under pressure due to rapid population growth.
Youth unemployment concerns have added to the debate.
Conservative Party leader Pierre Poilievre has made immigration reform a key campaign issue, blaming the Liberal government for what he calls a “devastated immigration system.”
“We need to limit population growth,” Poilievre said, linking immigration levels to economic slowdown and affordability issues.
Polling data supports this shift in public sentiment:
Two-thirds of Canadians surveyed in November said immigration levels are “too high.”
31% described them as “way too high.”
A March 2024 poll found that one in two Canadians believes there are too many immigrants.
According to Abacus Data CEO David Coletto, dissatisfaction with immigration policy is one factor behind the Conservatives’ 17-point lead over the Liberals.
Canada’s Rapid Population Growth
Canada’s population surpassed 40 million last year after growing by more than 1 million people, with 96% of that growth driven by temporary and permanent migration.
Key statistics include:
Since January 2018, Canada has welcomed 1.63 million new citizens
Nearly one-third came from India, the Philippines, and China
Over 8.3 million expatriates lived in Canada in 2021—about 25% of the population
This rapid growth has intensified debates over sustainability, infrastructure, and labor markets.
What Are the New Policy Changes?
The most significant reform reduces the share of low-wage temporary foreign workers that businesses can hire:
Cut from 20% to 10%
Reverses a 2022 policy that expanded access to foreign labor
Targets a temporary foreign worker population nearing 3 million
Additional measures include:
A cap of 360,000 international students per year
Stricter oversight of educational institutions accused of exploiting foreign students
Potential broader immigration reforms expected later this year
However, the government has introduced exemptions for farmers, especially in rural and remote areas where local labor shortages are severe.
Business Groups Push Back
Business leaders warn that reducing access to foreign workers could have serious economic consequences.
Simranzeet Singh of the Ontario Chamber of Commerce stressed the need for careful consultation to avoid “unintended harm to our economy or vital services.”
Dan Kelly, President of the Canadian Federation of Independent Business (CFIB), echoed similar concerns:
Labor shortages are already critical in agriculture, caregiving, skilled trades, and rural communities
94% of employers using the program follow worker protection rules
Foreign worker criticism, he says, is based on “unfounded political attacks”
Former Conservative government adviser Michael Bonner added that while businesses rely on foreign workers to keep costs low, overuse may discourage Canadian workforce participation.
International Pressure and Border Concerns
Canada is also facing pressure from the United States over border security. Some U.S. lawmakers have raised concerns about illegal migration across the northern border.
Security expert Glenn Cowan noted that tightening visa programs could help ease diplomatic tensions and strengthen cross-border cooperation.
Conclusion: A System Under Strain
Canada’s immigration system is at a crossroads. While the government aims to balance fairness, sustainability, and public confidence, businesses fear that reducing access to foreign workers will worsen labor shortages and slow economic growth.
With elections approaching and public opinion shifting, immigration policy is likely to remain a defining issue in Canada’s political and economic future.
