Trudeau’s temporary resident cap risks economic harm, business groups say

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Canada’s independent business advocate says Prime Minister Justin Trudeau’s plan to reduce temporary immigration risks dire economic consequences, underscoring the pressures the government is facing as it tries to slow population growth.

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A surge in temporary residents — including international students, foreign workers and asylum seekers — pushed Canada’s population growth rate to 3.2 per cent, one of the world’s fastest. The influx of new arrivals exacerbated a housing shortage and helped sink Trudeau’s popularity. The number of temporary foreign workers in Canada has continued to grow even as the unemployment rate rises — it reached 6.4 per cent in June, 13.5 per cent for the youngest workers. Temporary foreign workers have increasingly been recruited for low-wage, unskilled jobs, including in retail stores and restaurants.

Business groups have long raised alarm about Canada’s aging population and low birth rates, a phenomenon experienced by many advanced economies. Healey pointed to a Royal Bank of Canada report that said 46 per cent of projected structural labor shortages are in occupations that don’t need a university or college education, but instead require “occupation-specific” or on-the-job training.

 

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