Canada Housing Market

In a significant policy shift, Prime Minister Justin Trudeau’s administration is set to introduce caps on temporary residents entering Canada for the first time this fall, aiming to address the country’s housing crisis and mitigate inflation. Presently, temporary residents, including students, asylum seekers, and temporary workers, comprise approximately 2.5 million individuals or about 6.2% of Canada’s overall population. Immigration Minister Marc Miller has expressed intentions to reduce this percentage to about five over the forthcoming three years.

This decision to impose caps emerges amid consultations with provincial and territorial leaders to establish an annual target for temporary residents, mirroring the federal government’s approach to permanent residency planning through Canada’s annual levels. Miller emphasized the necessity of adapting immigration policies to reflect changes in global conditions, the labor market’s demands, and the evolving skill sets needed for Canada’s future workforce. Notably, temporary residents currently consist of 42% students, 9% temporary workers under the temporary foreign workers program, and 44% under the international mobility program, which includes various work permits and humanitarian pathways.

The move to limit temporary residents, especially amid Canada’s record population growth driven primarily by this group in the face of a housing shortage, signals the government’s efforts to create a more sustainable immigration system. The policy adjustments, including a two-year cap introduced last year for new international students and tightened work permit eligibility, aim to build an immigration system prioritizing needs over profitability, ensuring integrity and sustainability.

Furthermore, Canada plans to decrease its dependence on foreign labor by winding down temporary measures introduced in 2022, focusing instead on employing Canadian and permanent resident workers, as highlighted by Employment Minister Randy Boissonnault. This recalibration of immigration policy seeks not only to address immediate housing and labor market challenges but also to enhance Canada’s long-term productivity and economic health, urging a strategic shift towards prioritizing economic migrants and investing in newcomer integration and productivity enhancement.

Source: Canada to put a cap on temporary residents for the first time | Financial Post