Ontario rejects Ottawa's temporary foreign worker expansion

Ontario has rejected Ottawa's offer to let rural employers hire more temporary foreign workers, citing youth unemployment and a commitment to developing the domestic workforce.

In a letter dated Thursday and seen by CBC News, Ontario Labour Minister David Piccini told Patty Hadju, Canada's minister of jobs and families, that the province's businesses are "well positioned to recruit, train and retain the many young people who are available and eager to work."

In March, the federal government announced it would temporarily increase the proportion of low-wage temporary foreign workers that rural employers can employ, citing persistent labour shortages. The increase is only permitted for "eligible" rural regions and is dependent on provinces opting in. The measures will remain in effect through the end of March 2027.

Dan Kelly, president of the Canadian Federation of Independent Business, said the decision reads as "good politics" but not good for the economy. "There is almost no evidence to suggest that youth employment is being negatively affected by the number of temporary foreign workers that live in Ontario," he said. "For the most part, temporary foreign workers are filling jobs for which there are no Canadians available."

Kelly noted that many of the federation's members in rural and remote locations don't see young people "willing to take the job." "Canadian young kids...they're not signing up for jobs on farms. They're not signing up for jobs at the meat plant," he said.

Syed Hussan, executive director for the Migrant Workers Alliance for Change, warned the province's decision could worsen a care crisis in rural Ontario, as many temporary foreign workers employed in health care "can't simply be replaced." Both Kelly and Hussan said the federal and provincial governments should consider creating a pathway to permanent residency or citizenship for temporary workers.