Nancy Healey urges the government to reconsider plans to reduce temporary immigration, citing economic risks
Canada’s independent business advocate Nancy Healey has raised concerns over Prime Minister Justin Trudeau’s plan to reduce temporary immigration, warning of significant economic repercussions, according to BNN Bloomberg.
As the commissioner for employers, Healey sent a letter to three of Trudeau’s cabinet ministers on August 1, cautioning that the proposed 20 percent reduction in temporary residents over the next three years could hinder business growth.
Healey emphasized the importance of maintaining the labour pool, especially given Canada’s current and future labour shortages. She stated that a reduction in temporary immigration could have “catastrophic economic consequences” for businesses and limit their potential for growth.
Her letter, supported by the Canadian Chamber of Commerce and the Canadian Federation of Independent Business, reflects the concerns of the broader business community.
Canada’s population growth rate recently surged to 3.2 percent, one of the highest in the world, driven by an influx of temporary residents, including international students, foreign workers, and asylum seekers.
This rapid growth has worsened the housing shortage and contributed to a decline in Trudeau’s popularity. The government has already imposed a cap on student visas, leading businesses to worry that further restrictions on temporary workers may follow.
Employment Minister Randy Boissonnault informed business groups that he plans to limit their use of temporary foreign workers, a program that has faced increasing criticism for allowing fraud and abuse.
Despite these concerns, the number of temporary foreign workers in Canada continues to rise, even as the unemployment rate reached 6.4 percent in June, with a particularly high rate of 13.5 percent among young workers.
Many temporary workers are employed in low-wage, unskilled positions in sectors such as retail and hospitality.
Healey defended the temporary foreign worker program, describing it as “much maligned despite the rigour that has characterized it for many years.”
She argued that criticism of the program is often based on “unsubstantiated anecdotes.” The program requires employers to advertise jobs to Canadians before hiring foreign workers, pay market wages, and comply with regulations designed to prevent abuse.
In her letter, Healey urged the government to maintain the current number of workers admitted under the program, expedite approval processes, and avoid increasing the $1,000 fee for permit applications, which she noted is already burdensome for small businesses.
She also pointed to Canada’s aging population and low birth rates, which have long been concerns for business groups.
Healey cited a Royal Bank of Canada report that found 46 percent of projected labour shortages are in occupations that require “occupation-specific” or on-the-job training, rather than a university or college education.
Healey called for better immigration pathways that allow newcomers to stay in Canada, emphasizing that immigration streams linked to job offers tend to result in better outcomes for both employers and workers.
On the other hand, Mikal Skuterud, a labour economist at the University of Waterloo, offered a different perspective. He acknowledged that labour shortages pose challenges for businesses but argued that they can also lead to higher wages and increased investment in productivity-enhancing technology.
Skuterud suggested that framing the issue as an economic crisis is “really economic nonsense,” noting that what benefits businesses may not necessarily be in the best interest of the broader economy.
