(Bloomberg) -- Canada is removing a key incentive that gave foreign workers an easier pathway to gain permanent residency, part of a broader crackdown to drastically reduce immigration.
The Canadian government will stop awarding additional scores on residency applications to people who receive job offers through the temporary foreign worker program, Immigration Minister Marc Miller announced Tuesday.
It’s a step aimed at tamping out a recent spike in fraud involving unscrupulous immigration consultants and business owners selling temporary work permits to foreigners looking for extra points in their permanent-resident applications. A government-commissioned investigation viewed by Bloomberg News found some migrants were being charged between C$10,000 ($6,982) and C$180,000 for jobs.
After the pandemic lockdown ended and labor demand surged, the government loosened restrictions to allow firms to hire foreign workers more easily, especially for low-wage roles. But many newcomers used the program as a pathway to immigrate to Canada permanently, and rising numbers of bad actors took advantage of their desperation.
The temporary work permits — supported by documents known as labor market impact assessments meant to prove a need for a foreign hire — were worth 50 to 200 points on an application for the main permanent-residency pathway called express entry. Express entry is a points-based system where applicants are given scores based on their education, experience, age and other factors, and only the highest ranking candidates are invited to apply for residency.
The points attached to a temporary foreign worker job offer made it more valuable than working a full year in Canada in some cases. Those points will no longer be offered, Miller said as part of a broader announcement on border security on Tuesday.
Prime Minister Justin Trudeau’s government has been rolling out measures to curb inflows of newcomers since the beginning of this year, from cutting back intake numbers for international students to reducing annual targets for permanent residents.
Trudeau’s immigration curb — meant to alleviate pressures on housing and the job market and boost his sagging popularity — has already appeared to slow down the country’s population growth, which had been setting fresh records over the past two years.
In the third quarter, Canada’s population grew 0.4%, the slowest quarterly pace since early 2022. A key driver behind the deceleration was the net outflow of temporary residents, including foreign students and workers.
The government wants to halt Canada’s population gains over two years, with a goal to shrink the share of temporary-immigrant population to 5%, from 7.4% currently. That hinges on millions of people leaving.
©2024 Bloomberg L.P.