Canada is initiating a historic cap on temporary residents to tackle housing affordability

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By Moaz Nasir
TWA
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Immigration Minister Marc Miller announced a gradual reduction in temporary residents over three years, starting with a cap in September. This will affect international students, foreign workers, and asylum seekers. The move aims to address the affordability and housing crisis, with the target set to decrease from 6.2% to 5% of the population.

 

Minister Marc Miller emphasized the need for sustainable growth in Canada’s temporary resident numbers, noting a significant rise in recent years. With 2.5 million temporary residents in 2024, up from 1 million in 2021, he acknowledged the reliance on foreign workers for labor shortages but stressed the necessity for a more efficient system. Additionally, he recognized Canada’s international duty to admit individuals escaping conflict and persecution.

 

Minister Marc Miller highlighted Canada’s commitment to global responsibilities while advocating for a candid dialogue on the implications of rising international migration. Under the new policy, Canadian businesses must curtail their reliance on temporary foreign workers by May 1, demonstrating that such roles cannot be filled domestically. Construction and healthcare sectors, facing labor shortages, are exempt from this rule until August 31. In 2021, work permits constituted 40% of temporary residents, with students at 22%, and asylum seekers at 18%, as per Statistics Canada.

Advocates for temporary foreign workers have criticized the Canadian government’s recent announcement, arguing that migrants are being unjustly blamed for the country’s affordability and housing issues. This follows Canada’s reinstatement of visa requirements for Mexican nationals amid a rise in asylum claims. Additionally, Immigration Minister Marc Miller has imposed a 35% reduction in international student admissions for the next two years.

 

This decision, which affects the over 800,000 foreign students in Canada, has raised concerns among educational institutions about its potential to discourage international students from choosing Canada for their studies.
Universities in Canada have expressed concerns that the new cap on temporary residents could lead to a decrease in institutional revenue.

 

This policy change marks a departure from Canada’s traditional reliance on open immigration to fill employment gaps and support an aging population. The Trudeau administration is under mounting pressure to tackle the escalating housing affordability crisis, with average home prices reaching C$700,000 (\$517,400; £408,750) and a 22% increase in rent over the past two years.

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