By Matthew Daldalian
The Canadian government’s tightening of temporary foreign worker (TFW) rules might soon reverberate across Laval’s economy.
Business leaders and economists warning of closures, lost contracts, and long-term reputational damage.
The Chamber of Commerce
Caroline de Guire, president and CEO of the Chamber of Commerce and Industry of Laval, said the restrictions touch nearly every sector of the city.
“Yes, we always hear about tourism, hotel, agriculture, caregiving. These are big ones. But because we’re in a large agglomeration in the Greater Montreal region, it really is all sectors.” she said. “Everybody is impacted.”
A survey released by the Fédération des chambres de commerce (FCCQ) found that 63% of Quebec businesses risk contract losses, production cuts or even shift closures if restrictions persist. De Guire said the risks for Laval companies, adding that another survey showed 18% of small and medium enterprises employing low-wage TFWs could close altogether.
“These people have been hired, they’ve had contracts, their contracts are up for renewal. And they’re at a standpoint where it’s a no man’s land, where they might actually not be able to keep their workforce,” she said.
The workforce
Recent examples from other regions in Quebec illustrate the potential impacts of the new restrictions. Marineau Hotels in Mauricie told Le Journal de Montréal last week it risks losing “perhaps 80% of our kitchen staff” under the new rules.
The Quebec Hotel Association said 74% of hoteliers expect major impacts within a year if restrictions remain.
Meanwhile, federal criteria now cap many employers at 10% of their workforce in TFWs, with wage thresholds cutting off access to lower-paid roles.
According to a report by Canadian immigration lawyer, Joshua Slayen, Canada’s temporary foreign worker program has expanded rapidly, with the number of workers growing from 356,000 in 2011 to 845,000 in 2021 and employer approvals reaching nearly 240,000 in 2023.
Economist perspective
Economist Moshe Lander of Concordia University said the political debate often frames TFWs as either displacing Canadians or filling roles no one else will take. In either case, he argued, restrictions carry costs.
“It’s almost irrelevant whether they’re substitutes or complements. It does damage local workers,” Lander said. “Any attempt to keep foreign workers out will ultimately hurt the local population.”
Lander explained that policymakers increasingly frame the issue beyond the labour market, emphasizing potential competition between temporary foreign workers and local residents for housing, medical services, and school spaces. He said this shift helps justify restrictions even when foreign workers are economically complementary to domestic labour.
Still, he warned that restricting entry could harm Canada’s global image. “Once that message goes out, that’s not just short-term damage that’s done, that’s medium to long-term damage,” Lander said. “Canada is now going to be seen for a generation as an unwelcoming place for foreign workers.”
De Guire rejected the notion that foreign workers take jobs away from Quebecers. “It’s not a tradeoff, it really is a compliment,” she said. She added that retail, restaurants, hospitality, logistics, and advanced manufacturing as the sectors most vulnerable to labour shortages in Laval.
“Temporary foreign workers are chosen. It’s a decision. They’re not a fallback. They are a strategic necessity,” De Guire said.
