The overhaul reverses the expansions made to the temporary foreign worker (TFW) program in 2022 which saw an increase in economic principal applicants arriving in the country to fill one million vacant positions.
Owing to a low birth rate, Canada relies on economic immigrants to raise the revenue it needs to support social spending on services such as education, health care, and other important areas that provide high living standards in the country.
Last year, the country announced new immigration plans for skilled workers, caregivers, families, and other classes.
Canada said it was seeking to attract 485,000 new immigrants in 2024, and 500,000 in 2025 and 2026 respectively.
But in a tweet on Monday, Justin Trudeau, the Canadian prime minister, said the country would be cutting down on TFW intake.
“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,” he said.