Some P.E.I. employers worried Ottawa's temporary worker cap will leave them short-staffed

Some P.E.I. employers worry they'll be scrambling to filllabour gaps if the federal government caps the number of temporary foreign workers in the country.

Immigration Minister Marc Miller said Thursday that the federal government is planning to reduce the proportion of temporary residents in Canada's population overthe next three years.

Temporary residents made up 6.2 per cent of Canada's population in 2023, and the government is working to reduce that share to five per cent by 2027.

From seafood processing plants to restaurants, it's no secret that many Island employers have become reliant on temporary foreign workers.

David Groom, owner of the Quality Inn and Brothers 2 restaurant in Summerside, said there just aren't enough local applicants for roles like housekeeping and cooking.

He said a couple of his employees are temporary foreign workers. He suspects he may need to recruit more for the busy season ahead, as he tries to fill openings.

"This is a process we've been [using] since 2018 because we can't find the local individuals that want to do these particular jobs, so it forced us to go this direction," said Groom."If that's going to dry up, it's going to be a real difficulty in the industry as a whole."

WATCH | Filling the labour force without temporary foreign workers:

How will fewer foreign workers affect P.E.I. businesses?

7 months ago

Duration 2:29

Some Island employers who rely on foreign workers say theyre concerned about a federal government plan to reduce the number of temporary foreign workers in Canada, starting this spring. CBCs Steve Bruce spoke with Island business owners to hear what it means for them.

On Thursday, federal Employment Minister Randy Boissonnault said that as of May 1, the government will start reducing the number of temporary foreign workers that employers in certain sectors are allowed to hire.

Ottawa rolled out temporary measures in April 2022 allowing employers in the accommodation and food service sectors, among others facing labour shortages, to hire up to 30 per cent of their workforce through the Temporary Foreign Worker program for low-wage positions.

Boissonnault said the cap will be cut to 20 per cent for most sectors.

There will also be more stringent requirements for employers to prove they can't find local help.

'This is a very important sector'

Foreign workers make up 35 to 40 per centof staffing at P.E.I. seafood processing plants, according to the province's Seafood Processors Association.

Executive director Bob Creed said it's not clear if or how the new rules will affect those plants.

"Quite frankly, without the temporary foreign worker program it would be very difficult for seafood processing in P.E.I. to continue," he said.

"We will be concerned if we can't access the required labour to support our fish harvesters, our aquaculture sectors, our mussel farms. This is a very important sector to rural P.E.I. [and] to the entire economy."

We've got a lot of food industry jobs, we've got a lot of frontline workers in retail, and those people are very, very impacted by these changes provincially. Kelly Hamilton, Confederation Capital

This week's announcement follows other recent federal changes aimed at slowing population growth across the country.

There are new federal restrictions aimed at limiting the number of international students who come into the country.

The P.E.I. government plans to whittle down its nominees for permanent residency and focus on recruiting foreign workers to a few key sectors, including health care and construction.

Kelly Hamilton, a recruiter and immigration consultant with Confederation Capital, said all of those changes will make it tough for industries like food service and retail to find enough staff.

"Employers are panicking because, with P.E.I. specifically, we know they're focusing on certain sectors that are in demand, and they are genuinely in demand construction, manufacturing, production, health care, education. But we are a labour force that is built very much on sales and service," she said.

"We've got a lot of food industry jobs, we've got a lot of frontline workers in retail, and those people are very, very impacted by these changes provincially. If that avenue to secure a permanent placement in Canada as a resident disappears, they're going to disappear from our workforce."