Ontario refuses to increase foreign worker program even amid worker shortage

Ontario has said no to an offer from Ottawa and will be refusing to allow rural companies to increase their hiring of foreign temporary workers during the summer. Ontario immigration minister David Piccini confirmed that the province is not interested in increasing the number of foreign workers being employed in rural areas. Piccini cited youth unemployment rates as the reason. Ontario's youth unemployment rate has risen over the last three years. Nearly 15 per cent of Ontarians aged 15-24 are jobless.

Ottawa recommends increase

The federal proposal was announced earlier this year by Employment and Social Development Canada. Initially, the program was designed as a temporary measure for provinces and territories experiencing acute labour shortages in rural regions. Under the initiative, provinces could request permission for eligible employers to retain their existing number of low-wage temporary foreign workers and increase the allowable workforce cap to 15 per cent until March 2027. Currently, the cap is at 10 per cent. Federal officials said the policy is trying to address the unique challenges many rural communities face in recruiting and retaining workers while maintaining safeguards. Employers are required to demonstrate that they first attempted to hire Canadians and permanent residents.

Ontario refuses proposal

Surprisingly, Ontario immediately refused the proposal. Immigration Minister David Piccini made it clear that Ontario is trying to move away from its reliance on temporary foreign workers, not increase it. During a press conference in Kitchener, Piccini made it clear that Ontario is not interested in expanding its foreign worker program, citing the province's chronic problem in drawing workers to mass labour sectors. Piccini sent a letter to federal Jobs Minister Patty Hajdu, officially opting out of the program. While the proposal may make things easier and more affordable for companies, according to Piccini, it does nothing to help Ontarians.

Piccini offered alternative strategies, claiming the province would rather invest in long-term solutions instead of Band-Aids. Ontario is planning to address the issue through regional and provincial permanent immigration pathways that help employers fill in-demand jobs and attract skilled workers to rural communities while protecting local workers. Piccini stressed the need to create Ontarians with the skills necessary to undertake the work normally done by foreign temporary workers. While Piccini is certainly correct in addressing the need to ‘skill-up' Ontario's young workforce, the province is also dealing with thousands of jobs sitting empty.

According to Restaurants Canada, the foodservice sector currently has 58,000 job vacancies, a number projected to grow to 105,000 by 2030. Shortages were felt more prominently in rural areas. While temporary foreign workers only make up about 1,5 per cent of the industry, according to Restaurants Canada, they have been a lifeline for the food service industry in the last three years. David Pierce, the vice-president of government relations at the Canadian Chamber of Commerce, commented on the issue. Pierce claimed that while supporting youth employment is important, a range of factors influence employment gaps.

What are temporary foreign workers?

The Temporary Foreign Worker Program (TFWP) is a Federal Canadian program that allows employers in certain sectors to hire low-wage temporary foreign workers when they cannot find qualified Canadians to do the work. The program is managed jointly by Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC). Before an employer can hire a foreign national through the TFWP, they must generally obtain a Labour Market Impact Assessment (LMIA). This document proves that there is a need for a TFW. The employer must prove they have made reasonable efforts to recruit locally and that they are offering fair wages and working conditions. The employer must also prove that they have tried to hire a Canadian citizen beforehand.

For Ontario employers, their foreign temporary worker cap will remain at 10 per cent. While the provincial government has the opportunity to alter its position, it seems unlikely that Doug Ford will back down from this mountain. Rural businesses that had hoped to benefit from the higher workforce cap will continue operating under the current 10 per cent limit, while sector-specific exemptions already in place for industries such as health care, construction and food processing remain unaffected. As labour shortages continue to affect much of rural Ontario, the province's decision ensures the debate over balancing workforce needs with domestic employment priorities isn't over; it's just begun.