Canada’s new foreign workers policy poses challenges for India, Indians

But Carney's new policy on foreign workers has posed a fresh challenge for Delhi as it puts the status of several Indians in Canada in jeopardy.

The temporary foreign worker programme that has been in force for several years needs a “focused approach” that targets the needs of specific sectors and regions, said Carney.

Impact on Indians

Speaking at the Liberal Party’s caucus at their annual retreat in Edmonton earlier this week, the Canadian Prime Minister sought to outline his government’s plans for the fall season.

He assured the caucus members that the government was “setting those goals, adjusting and working to ease the strain on housing, public infrastructure and our social services while we build that strong economy.”

He further said his plan was to reduce the number of non-permanent residents to “less than 5 per cent” of Canada’s total population.

Sizeable population

Temporary workers and international students made up 7.1 per cent of Canada’s population as of April 1, according to Statistics Canada. The North American nation has a population of 41.5 million people.

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In recent months, many Indian migrants in Canada have found themselves in a troubling situation due to delays in the renewal of their work permits. It left them unable to work or access essential services, said an Economic Times report.

Varun Singh, MD, XIPHIAS Immigration, wrote in an article for the paper, “This silent crackdown is causing significant distress among the Indian community across Canada, creating uncertainty for thousands of individuals and families who once thought they had found stability.”

Processing delays

Thousands of Indian nationals working in Canada, particularly under the Temporary Foreign Worker Program, are losing their legal work status due to significant delays in processing Labour Market Impact Assessments (LMIAs), which is crucial to get the work permit renewed.

According to Singh, the processing times have almost tripled over the past year, going from about 58 business days to nearly 165 business days by early 2025.

Due to these massive delays, many migrants are stuck in a state of limbo. “They are unable to work legally, unable to access healthcare, and in some cases, unable to continue paying their bills or supporting their families,” says Singh.

Shift in public opinion

Canada's large immigrant population has long been regarded as a virtue. But new data suggests there has been a drastic change in popular opinion.

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For about 25 years, no Canadian politician risked discussing the merit of inviting immigrants to the country. But now there has been a major about-face, say observers.

Conservative Leader Pierre Poilievre demanded that the temporary foreign workers programme be scrapped altogether as "too many, too quickly" were brought in by the Liberals. His demand came in the wake of high youth unemployment figures that hit 14.6 per cent in July.

The change in politicians’ approach to foreign workers came as many surveys found a fast-waning mood among the Canadian public for immigrants. According to Nanos Research, three-quarters of Canadians now support reducing the number of new immigrants.

No support for immigrants

Polling firm Abacus Data also found crumbling support for immigrants. Nearly a third of voters surveyed earlier this month said immigration is one of their top-three issues.

Environics Institute’s data showed six in 10 Canadians say too many immigrants are coming in.

"It's almost like whiplash in terms of how fast public opinion changed on that question,” said David Coletto, CEO of Abacus Data. He pointed out that 10 years ago, Canada welcomed Syrian refugees with open arms and today its stand on immigrants is “very closed off".

Young people, who are facing higher unemployment rates and housing troubles, are most vocal in abolishing the temporary worker programme.

Spurt in population growth

The population grew by one million a year for three years in a row, according to Statistics Canada data,

Mikal Skuterud, an economics professor at the University of Waterloo and an expert on Canada's immigration system, said, "The vast majority of Canadians are clearly turning against immigration. It doesn't mean they are nativistic or anti-immigrant or xenophobic. They're just opposed to what they've seen."

The Temporary Foreign Worker Programme was introduced in 1973 to deal with an acute labour shortage and allowed Canadian employers to hire foreign workers to fill temporary jobs when qualified Canadians are not available.

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Employment and Social Development Canada (ESDC) assesses applications from employers to hire temporary foreign workers and conducts assessments on their impact on the labour market.

It assesses the labour market information for the region, the occupation of the recruits, the wages and working conditions being offered and how they will impact Canadians.

Karen Cocq, the co-executive director of the Migrant Workers Alliance for Change, questioned claims that TFWs are taking jobs away from students. “The majority of them work in agriculture, trucking, and construction. These are not the kinds of jobs that students would like to do," she said.

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Cocq warned that anti-migrant racism can turn people’s anger and frustration against newcomers.

India-Canada relations

India’s relations with Canada had nosedived under Trudeau’s policy to pander to Khalistani extremists for the survival of his government.

The bilateral relations improved after Carney came to power and invited Indian Prime Minister Narendra Modi to the G7 summit that Canada hosted in June.

After the meeting of the two leaders, India and Canada decided to restore normal diplomatic relations by reappointing their respective high commissioners who were earlier withdrawn and filled up other diplomats’ posts in the two high commissions.

Carney, who won the election on an anti-Donald Trump plank, saw India as a potential trade and investment partner in the wake of the US President's threat of imposing high tariffs on Canadian goods entering the US market.

His latest announcement on the Temporary Foreign Worker programme, however, can adversely affect a number of Indians in Canada and cast its shadows on the bilateral ties.