Canada is potentially heading for a labour supply decline as immigration policy abruptly changes

Hard rather than soft landing, albeit necessary correction:

A series of rapid policy changes aimed at reducing the temporary resident population in Canada could lead to an overall shrinking of the labour force and a potential economic slowdown, economists predict.

A new report from Bank of Nova Scotia says that Ottawa could be “over-correcting” in its attempt to rein in the number of temporary residents in the country, which topped three million people for the first time this July, or 7.3 per cent of the total population.

The bank’s economists predict that the cumulative effect of Ottawa’s shift in immigration policy could lead to a 1-per-cent contraction in Canada’s labour force over the next two years and weakening economic growth if businesses do not boost productivity accordingly.

The federal government announced new restrictions to the Temporary Foreign Worker Program on Monday, raising the minimum wage requirements for the high-wage stream of the program – a move that Ottawa says is designed to incentivize the hiring of domestic workers….

Source: Canada is potentially heading for a labour supply decline as immigration policy abruptly changes