Prime Minister Justin Trudeau’s decision to reduce the intake of low-wage foreign workers has raised concerns among Canadian dream for Indian Students Indian students in Canada.
According to IRCC Indian nationals represent the largest group among international students holding 37% of 579,075 study permits issued as of November 2023.
Many students with the dream of Canada’s Permanent Residency in hand one day after graduation applied for Canadian DLI-approved universities but with the current situation regarding reducing low-wage temporary worker policy, many student’s future in Canada seems unpredictable.
The Policy and Its Implications
On Monday, Canadian Prime Minister Justin Trudeau announced a significant policy shift aimed at reducing the number of low-wage temporary foreign workers and limiting the intake of permanent residents.
This decision marks a departure from the 2022 program expansions, as the government grapples with challenges posed by a growing population and a surge in temporary residents. Economists warn that rapid population growth, largely driven by immigration, is placing strain on housing and public services like healthcare.
Notably, around 97% of Canada’s population increase last year was attributed to immigration.
The Canadian government’s decision to curtail the number of low-wage foreign workers is part of a broader strategy to prioritize Canadian citizens and permanent residents in the labor market.
The rationale behind this move includes addressing the country’s growing concerns around affordable housing, access to public services, and economic stability.
With an increasing number of international students coming to Canada, especially from India, the strain on public resources has intensified. Reducing low-wage foreign workers is seen as one way to alleviate these pressures.
“We’re reducing the number of low-wage, temporary foreign workers in Canada. The labor market has changed. Now is the time for our businesses to invest in Canadian workers and youth,” Trudeau announced
The new regulations state that work permits will not be granted in areas where the unemployment rate is at or above 6%, with the exception of certain industries such as construction, healthcare, and seasonal agriculture.
Additionally, firms will only be allowed to hire 10% of their workforce—down from the current 20%—as temporary, low-wage foreign workers.
Why are Indians Stressing
This policy change could significantly affect Indian nationals, who made up around 40% of Canada’s international student population last year. The impact may be especially pronounced for those from Punjab, as over half of the Indian arrivals in Canada come from this state, including students, their spouses, and other low-wage workers.
According to estimates, India contributed 26,495 temporary foreign workers to Canada in 2023 under the Temporary Foreign Worker Program (TFWP), placing it among the top ten countries of origin for these workers.
New restrictions would limit opportunities for these individuals, affecting their income and future prospects. Until last year, there were no caps on the number of international students or on the issuance of open Spouse Work Permits (SOWPs).
The imposition of restrictions and Trudeau’s recent remarks reinforce this policy shift, which could negatively impact Indians considering Canada as a migration destination.
Canada’s Immigration Minister, Marc Miller, previously noted a “sharp increase” in the number of temporary residents in recent years, with many playing critical roles in industries like construction, early childhood education, and healthcare.
He also emphasized the need for a more efficient system that ensures pathways to permanent residency (PR). This statement offers a potential silver lining, suggesting that while the policy aims to limit the entry of temporary workers, it could also streamline the process for those seeking to become permanent residents.
Gurpreet Singh, an expert in Canadian immigration, highlights that the policy might move in two directions: Canada has already begun restricting new entries by closing SOWPs for most undergraduate courses and has stopped renewing or extending work visas for those already in the country, which could signify a broader tightening of immigration policies. Alternatively, Canada might provide more opportunities for temporary workers to become permanent residents, integrating them more fully into the Canadian economy
Canadian dream for Indian Students in Canada often faces high tuition fees, particularly in comparison to domestic students. They also have to manage the cost of living in Canadian cities, which has risen sharply in recent years due to inflation and a housing crisis.
Part-time work in low-wage sectors is an essential lifeline for many of these students. By reducing the availability of such jobs, the new policy could significantly increase financial stress, forcing students to seek alternative sources of income or potentially cut back on their education and living expenses.
Furthermore, the reduction in available low-wage jobs might make it more difficult for students to meet the financial thresholds required for various post-graduation work permits or PR programs.
Canadian work experience is a critical factor in several immigration streams, and without access to entry-level jobs, students may find themselves at a disadvantage when applying for permanent status.
Uncertain Future for Students
The changes bring a wave of uncertainty to the Canadian dream for Indian students in Canada. Many may have to reconsider their financial plans or even their long-term goals of settling in Canada. For some, the dream of gaining Canadian work experience and eventually obtaining PR status might become more difficult to achieve.
While the Canadian government’s decision to reduce low-wage foreign workers aims to address broader economic and social issues, it also creates new challenges for the Canadian dream for Indian Students who rely on such opportunities to support their education and future aspirations. The coming months will likely see more debate on this topic, as affected students and stakeholders advocate for solutions that balance economic concerns with the needs of Canada’s vibrant international student community. And according to that International students should make wise choices.
