The Canadian government unveiled a suite of measures it says are designed to cut the number of temporary workers in the country, as recent data show the jobless rate is rising.

In cities where the unemployment rate is above 6 per cent, the government as of next month won’t process applications from employers to hire temporary workers for certain low-wage jobs, Canadian Employment Minister Randy Boissonnault said Monday in a statement.

Also, employers won’t be able to hire more than 10 per cent of their workforce through the TFW program, and the duration of employment for low-wage workers hired through the program will be cut to one year from two.

Boissonnault made the announcement from Halifax, N.S., where his party – the governing Liberals – is meeting for a cabinet retreat to reset policy ahead of next year’s election.

Statistics Canada said this month the unemployment rate was 6.4 per cent in June, matching a reading from May which outside of the COVID-19 pandemic is the highest since 2017. The new measures will come into effect Sept. 26, Boissonnault said.

The TFW program “was designed to address labour market shortages when qualified Canadians were not able to fill those roles,” Boissonnault said in the statement, acknowledging that the program had been used to circumvent hiring qualified workers in Canada. “Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadians workers and ensures Canadians can trust the program is meeting the needs of our economy.”

Demand for workers has skyrocketed over the past five years, with ESDC data showing employers were approved to hire 239,646 temporary foreign workers in 2023 — more than double the 108,988 TFW positions in 2018, the Toronto Star reported this month.

The TFW program has been criticized for giving employers an opportunity to exploit and abuse workers.