Canada Implements First-Ever Cap on Temporary Residents Amid Housing Crisis

Canada is set to implement limits on the number of temporary residents it admits for the first time in its history. The announcement was made by Immigration Minister Marc Miller on Thursday.

The decision comes amid concerns over affordability and housing issues and will see a reduction in the number of temporary residents over the next three years, with the first cap set to be established in September. This cap will encompass international students, foreign workers, and asylum claimants.

According to the Canadian Immigration Minister,

There should be an honest conversation about what the rise of international migration means for Canada as we plan ahead.

Minister Miller emphasized the need for “sustainable” growth in the influx of temporary residents, citing a recent “sharp increase” in their numbers. Statistics Canada reports a surge from nearly one million temporary residents in 2021 to 2.5 million in 2024.

While Canada relies heavily on temporary foreign workers to address labor shortages, the minister stressed the necessity of making the immigration system more efficient.

Under the new policy, Canadian businesses will be required to reduce their reliance on temporary foreign workers by May 1, with exceptions granted to the construction and healthcare sectors facing labor shortages. These sectors will maintain current levels until at least August 31.

The announcement has drawn criticism from advocates for temporary foreign workers, who argue that migrants often work under precarious conditions and have been unfairly blamed for the affordability and housing crisis.

This move follows Canada’s reinstatement of visa requirements for Mexican nationals due to a surge in asylum seekers from Mexico. Additionally, earlier this year, Minister Miller imposed limits on the number of international students admitted to Canada, resulting in a planned 35% decrease in approved study permits.

While these measures aim to address concerns over affordability and labor shortages, they represent a significant departure from Canada’s historically open immigration policy. As the Trudeau government faces mounting pressure to tackle the housing crisis, these changes signal a shift in approach to immigration and workforce management.



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