Temporary foreign worker program to be scaled back

They do everything from picking our fruit to pouring our coffee and cleaning hotel rooms but now, the prime minister is cutting back on their services.

Ottawa is looking to reduce the number of temporary foreign workers in Canada.

"Inflation has started to come down, employment is higher and we no longer need as many temporary foreign workers," Justin Trudeau said.

During the pandemic, the federal government invested in the program, which saw more than 183,000 permits effective last year – an 88 per cent jump from 2019.

"These folks have got record-high unemployment and there's record-high unemployment for youths, there's record-high unemployment for, basically, very young workers," said Chetan Dave, professor of economics at the University of Alberta.

"So having this surge or temporary foreign workers cut against Canadian workers who were looking for positions as well."

Some sectors that will be spared include health care, construction and food security.

"I think that it is a direct reaction to the United Nations calling us, basically, slave traders," said Anila Umar, Centre for Newcomers president and CEO.

The centre believes this will have a major impact on business, with many criticizing the program in the past, saying foreign workers have been taken advantage of with low pay and poor working conditions.

"We are now going to disadvantage a number of our larger businesses that have always been in compliance," she said.

"So there's a number of different, nuanced kinds of pieces that we're dealing with that kind of create this powder keg."

Effective Sept. 26, the government will refuse applications for low-wage temporary foreign workers in communities with an unemployment rate of six per cent or higher.

Calgary's unemployment is currently 6.6 per cent.

Employers can hire only 10 per cent of their workforce from the program instead of 20, and workers can only work for one year, instead of two.

"To those who would complain about worker shortages, here's my message: there is no better time to hire and invest in Canadian workers," Trudeau said.