CME warns TFW program changes could exacerbate Canada’s manufacturing labour shortage

Canadian Manufacturers & Exporters (CME) released a statement sharing its concerns about the changes to the Temporary Foreign Workers (TFW) Program announced by the federal government recently. CME notes that by restricting access to TFWs, the government risks exacerbating the labour shortages facing Canada’s industrial economy. As recently as May 2024, there were 37,600 unfilled positions in Canada’s manufacturing sector.

CME added in its statement that while it supports efforts to curb fraud or any other misuse within the program, it is critical that the TFW Program remains accessible to Canadian manufacturers struggling to meet their labour needs. Taking a restrictive and piecemeal approach to TFW and immigration reform may undermine the sector’s ability to sustain and grow its workforce, it explains.

Instead, CME calls on the federal government to undertake a full modernization of Canada’s immigration and TFW programs. A comprehensive overhaul is essential to ensure that manufacturers have access to a talent pool equipped with the knowledge, skills and abilities needed for long-term growth.

CME notes that labour and skills shortages will continue to pose significant challenges for manufacturers in the years ahead. With over 27 percent of the manufacturing workforce aged 55 or older and approximately 40,000 workers retiring annually through 2031, the sector faces an acute need to replace retiring employees and fill new roles created by growing demand. Failure to address these workforce challenges will severely constrain the growth potential of Canada’s manufacturing sector.