Canada will reduce the number of low-wage, temporary foreign workers, Prime Minister Justin Trudeau said on Monday.

What Happened: Trudeau announced the development in a post on micro-blogging site X, encouraging local businesses to invest in Canadian workers and youth.

“We're reducing the number of low-wage, temporary foreign workers in Canada. The labour market has changed. Now is the time for our businesses to invest in Canadian workers and youth,” the prime minister’s tweet read.

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Trudeau’s announcement came as Canada unemployment rate stood at a 30-month high of 6.4% in July. The economy shed nearly 3,000 jobs in the month. The country’s unemployment rate currently stands at its highest since January 2022.

The announcement has served a major blow to Indians settled in the country. Indian students and workers with permit form a major chunk of temporary workers in the country.

In 2023, India reportedly contributed to 26,495 temporary foreign workers to Canada, placing it among the top 10 countries of origin for temporary foreign worker permit holders.

The number of Indians immigrating to Canada has more than quadrupled since 2013, according to a report by non-profit organisation National Foundation for American Policy. Many Indian students are now choosing Canadian universities over U.S. universities due to Canada's more favourable immigration policies for attracting and retaining talent, the report found.

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