Foreign Policy Watch: India-Canada

How Canada’s policy of ‘reducing low-wage, temporary workers’ may impact Indians?       

Note4Students

From UPSC perspective, the following things are important :

Prelims level: “Temporary Workers” in Canada;

Mains level: Canada’s Policy of “Reducing” Such Workers' Impact on Indians;

Why in the News?

On Monday, August 26, Canadian PM Justin Trudeau announced that Canada would be “reducing the number of temporary foreign workers in low-wage jobs.”

Who are these “Temporary Workers” in Canada?

Temporary workers in Canada encompass various categories of individuals, including:

  • Temporary Work Visa Holders: These individuals come to Canada for a fixed duration, typically two years, to work in low-wage jobs that pay between CAD 13-19 per hour (approximately Rs 800-1,200 per hour).
  • International Students: After completing their studies, many international students remain in Canada on work visas for one to three years while applying for Permanent Residency (PR).
  • Spouse Open Work Permit Holders: Many international students bring their spouses to Canada, who can work in low-wage jobs under this permit.
  • Labour Market Impact Assessment (LMIA) Workers: These workers are hired under LMIA contracts, which allow employers to recruit foreign workers when they cannot find Canadians to fill job openings.
  • Humanitarian Arrivals and Youth Program Participants: This category includes individuals arriving through special humanitarian pathways, such as the Canada-Ukraine Authorization for Emergency Travel (CUAET), asylum seekers, and participants in reciprocal youth programs that allow Canadians to work abroad.

How will Canada’s Policy of “Reducing” Such Workers Impact Indians?

  • Reduced Opportunities: The restrictions on temporary workers will limit job opportunities for many Indians, particularly students and their spouses, who make up a significant portion of the temporary workforce.
  • Impact on International Students: Indians constitute around 40% of Canada’s international student population, with a majority coming from Punjab. The new policy may restrict their ability to transition from temporary work to permanent residency.
  • Shift in Immigration Dynamics:  The introduction of restrictions emphasizes a policy shift that could deter potential migrants from considering Canada as a destination.

Indians in Canada: 

  • The Indian community in Canada has grown significantly in recent years. Between 2000 and 2020, the registered Indian population increased from 670,000 to over 1 million.
  • As of 2021, there were approximately 1.8 million people of Indian origin in Canada, representing over 5% of the total population.
  • Indian students are the largest international student group in Canada, accounting for 20% of all international students in 2021. There were over 319,000 Indian students enrolled in Canadian institutions, contributing approximately US$ 4.9 billion to the Canadian economy in 2021
  • Many highly skilled Indian professionals contribute to various sectors, including technology, healthcare, and engineering. In 2022, over 15,000 Indian tech workers moved to Canada, enhancing the labor market with their expertise.

Way forward: 

  • Strengthen Domestic Opportunities: India should focus on creating more job opportunities and enhancing skill development programs within the country to reduce dependency on foreign employment, ensuring that young professionals and students have viable career options at home.
  • Bilateral Engagement and Negotiation: Engage in diplomatic discussions with Canada to advocate for the interests of Indian workers and students, seeking to ensure continued access to work and study opportunities under fair and equitable conditions.

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