Canada’s plan to reduce the number of temporary foreign workers coming into the country — and being used overall — will not have the desired effect, warns a new report from the Canada West Foundation. The new program, intended to open up more jobs for Canadians, will disproportionately hurt provinces in the West, where workers are needed the most.
This across-the-board limit hurts western businesses because those areas have much lower unemployment rates — thus, fewer Canadians to step into those roles. The unemployment rates in each western province, Alberta (4.6%), British Columbia (6.6%) and Saskatchewan (4.1%), are lower than the national average of 7.1%, according to the report. Meanwhile, temporary foreign worker usage is much higher.
By July 2015, temporary foreign workers can comprise no more than 20% of a Canadian company’s’ Workforce. The allowed portion becomes 10% by July 2016. These limits do not apply to other types of foreign workers, such as higher skilled.
The new policy is “less effective in eastern Canada where there are higher rates of unemployment and overly effective in the West,” the report states. The first wave of temporary workers affected by the new program is set to leave Canada April 1.
For more information, read this article from The Province.