Canadian Prime Minister Justin Trudeau on Monday announced that his government will limit the proportion of temporary foreign workers that employers can hire for low-wage positions.

“The labour market has changed,” Trudeau said. “Now is the time for our businesses to invest in Canadian workers and youth.”

Canada’s Temporary Foreign Worker programme allows foreigners to work in the country for a limited amount of time. As part of the changes introduced on Monday, the proportion of temporary foreign workers that employers in the low-wage sector can recruit has been reduced to 10% of the overall workforce, from 20% earlier, according to The Globe and Mail.

Further, authorities will no longer accept applications to hire such workers from employers in areas where the unemployment rate is 6% or more. This rule had earlier been suspended on account of labour shortages during the Covid-19 pandemic.

The Canadian government has also reduced the maximum amount of time for which temporary foreign workers can be employed in low-wage sectors from two years to one year.

Trudeau, however, said that these rules will not apply to employers in the construction, healthcare, and food security sectors.

Last year, 26,495 Indians were hired as temporary foreign workers in Canada, The Indian Express reported. India was among the top ten countries of origin for those holding permits as temporary foreign workers.

The total number of Indians immigrating to Canada increased from 32,828 in 2013 to 1,39,715 in 2023, which amounted to an increase of 326%, Forbes quoted data from the non-profit National Foundation for American Policy as stating.

The Temporary Foreign Worker programme is meant to address labour shortages in Canada. However, it has faced criticism from labour rights advocates, who have alleged that it suppresses wages and makes workers vulnerable to abuse.

A United Nations report from earlier this month called the programme a “a breeding ground for contemporary forms of slavery”, according to the BBC.