Canada's Temporary Resident Reduction Plan: The 2024 Announcement

📌 Historical record: news from March 2024. This article covers the federal announcement that Canada would reduce the share of temporary residents over the following years. Immigration targets and population estimates have changed since then, so use the article as historical context and confirm current figures in the latest federal immigration levels plan.

Temporary residents in Canada begin to see doors closing

Until now, temporary resident levels have not been considered in Canada’s Immigration Levels Plan, but the Canadian immigration minister has emphasized that the targets should not be interpreted as thresholds. However, he noted that there may be restrictions in certain areas managed by IRCC.

To date, there have been no targets or limits established for permits issued through programs such as the Temporary Foreign Worker Program (TFWP), the International Mobility Program (IMP), Intra-Company Transfers (ICT) or trade agreements such as the Canada-United States-Mexico Agreement (CUSMA).

However, a cap was announced earlier this year on the number of study permits for international students that IRCC will consider.

Read also: “What changes for you with permanent residence in Canada”

Marc Miller said including temporary residents in the Immigration Levels Plan will help the country control population growth. He also recognized that Canada was overly reliant on temporary foreign workers.

“Recently, the number of temporary residents in Canada has increased significantly, reaching up to 2.5 million, or 6.2% of our population by 2023,” said Miller. “Therefore, in our tier plan, we will include a goal to reduce our temporary resident population to 5% over the next 3 years.”

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In his speech, Marc Miller outlined the distribution of temporary residents in Canada as follows:

• 42% are international students;
• 9% are spouses of students;
• 26% hold postgraduate work permits;
• 9% are foreign workers under the Foreign Temporary Worker Program whose employers obtained a first-time Labor Market Impact Assessment (LMIA) to employ them;
• 10% participate in reciprocal youth exchange programs, such as the Working Holiday Program;
• 26% are admitted through special humanitarian programs for Ukrainians, Iranians, Turks and others;
• 17% are involved in intercompany transfers, commercial agreements and other niche work permit programs;
• 12% are spouses of qualified workers; and 5% are asylum seekers.

Which doors are being closed to temporary residents in Canada

Both Mr. Miller and Mr. Boissonnault did not specify in their speeches which programs would be targeted for reduction.

However, on January 22, 2024, Minister Miller announced that Canada would reduce the number of approved study permits starting this year by 35%.

Additionally, it stated that only spouses or legal partners of international students enrolled in master’s or postgraduate programs would be eligible for the open spousal work permit. This change is now in effect. Such adjustments are expected to significantly decrease the number of temporary residents in Canada, as well as the future number of postgraduate work permit holders, spouses of students and, eventually, the spouses of workers.

Precisely how this will affect the number of temporary residents in Canada and which categories will be affected depends, in part, on the provinces responsible for allocating places for international students at their post-secondary education institutions.

Additionally, Minister Boissonnault announced that starting May 1, 2024, the following changes will be implemented in the LMIA program:

• The new LMIAs will be valid for six months, reduced from 12 months;
• Most employers under the low-wage stream, except the construction and healthcare sectors, will see a reduction from 30% to 20% of their total workforce that can be employed through LMIAs;
• Employers will need to explore all options before applying for an LMIA, including recruiting asylum seekers with valid work permits in Canada.

Another significant factor in reducing numbers will likely be the end of the Canada-Ukraine Emergency Authorization program. As of February 27, 2024, this initiative has allowed 248,726 Ukrainian citizens to enter Canada, many of whom have received work permits. The completion of this program is expected to notably reduce the influx of new temporary residents into Canada.

Read also: “Report reveals impact of Temporary Immigrants in Quebec”

In the following video, you can understand how the entry of asylum seekers is impacting the province of Quebec.

It’s unclear which programs additional cuts will come from. Part of the difficulty in predicting this is due to a dramatic shift in the government’s narrative, moving from one of “structural labor shortages” and “economic growth through population growth” to a “too many people” narrative.

For example, IRCC recently reduced eligibility requirements for the Francophone program. Now, will they reverse these changes whose benefits have just been touted?

Foreign Workers in Construction and Health Excluded from New Policy

As Canada plans to reduce the number of temporary residents, Miller recognizes the country’s need for temporary international workers to address labor shortages. However, he highlights that changes are necessary to optimize the system.

Miller also highlighted Canada’s international obligations to welcome individuals fleeing war and political persecution.

However, this rule will not apply to foreign workers in the construction and healthcare industries due to the shortage of labor in these sectors in the country. These categories will continue to be admitted to Canada at existing levels until at least August 31.

On the other hand, some Canadian companies will need to reduce their reliance on temporary foreign workers by May 1. Additionally, they will have a shorter period of time to demonstrate that these positions could not be filled by permanent residents or Canadian citizens.

Those who have already arrived are fine, but what about those who are still considering coming?

As part of efforts to support the transition from temporary to permanent residence, the federal government indicated that more immigration draws would focus on candidates already in Canada. Provinces and territories participating in provincial nominee programs were encouraged to align their selections with that objective. In practice, this can create more opportunities for qualified temporary residents who are already contributing to the Canadian economy, but it is never a guarantee of permanent residence.

Read also: “What changes for you with permanent residence in Canada”

In other words, the Provincial Nominee Program (PNP) draws, and possibly the Express Entry draws, may favor candidates who are already in Canada as temporary residents.

Miller emphasized that temporary residents play a crucial role in Canada’s economy, and the changes reflect a necessary review of immigration programs and measures in the wake of the COVID-19 pandemic.

According to the minister, the job market is tightening, but Canada managed to recover 138% of the jobs lost during the pandemic.

Read also: “New rules for international students in Canada: Summary”

Still about Immigration in Canada

Canada plans to welcome 485,000 new permanent residents in 2024, increasing to 500,000 in 2025 and 2026. IRCC says maintaining this target will help stabilize Canada’s population increase due to immigration, allowing the federal government and provincial governments to support newcomers while balancing the needs of Canada’s existing population.

“We want to ensure that every new family and resident is successful and has access to the services they need. Our ultimate goal is to establish a well-managed and sustainable, needs-based immigration system”, Miller said.

IRCC has faced criticism in recent months over record levels of immigration as Canada faces affordable housing shortages and pressures on the health-care system.

Read also: “Population of Canada has just surpassed 40 million and sets a new record”

Final considerations

In summary, the measures announced by Immigration Minister Marc Miller indicate an urgent need for attention to the current crisis facing the country due to poor decisions made by the government in recent years.

The inclusion of targets for temporary residents in the Immigration Leveling Plan, along with the increase in domestic draws for permanent residency, underscores the critical importance of this moment and the need to balance Canada’s economic demands with population stability and support for newcomers.

I have warned that opportunities could start to become scarcer at some point, but I do not intend to discourage those who aspire to a life in Canada.

The world has undergone major transformations since the COVID-19 pandemic, and nowadays it is more challenging than ever to get here. However, this does not mean that this difficulty is permanent. Countries like Canada have faced similar cycles over time, and it is possible that these circumstances will soon change.

You can follow all the information released regarding the new immigration policy in this post through the official Canadian government page in this link here.

I hope this information helped once again. If you want more tips like this, sign up for our newsletter to receive updates about life in Canada and your first steps as a newcomer.

See you in the next post! 😉