US Citizen Temporary Workers in Canada Drop 30 Percent as Non-Citizen Numbers Surge

New Report Shows Downtrend of U.S. Temporary Foreign Workers in Canada

A recent Statistics Canada report reveals a significant shift in the flow of temporary foreign workers between the U.S. and Canada. From 2010 to 2023, the number of U.S. citizens coming to Canada under temporary work permits has declined sharply, while non-citizen residents of the U.S. are increasingly filling these roles.

Trends in U.S. Citizens Working Temporarily in Canada

In 2010, 61,698 U.S. citizens held Canadian work permits. This number peaked at 70,420 in 2013 but has since dropped steadily. By 2021, it fell to 36,586 and only slightly rebounded to 38,867 in 2023. This represents a decline of over 22,800 individuals in just 13 years.

Growth in Non-Citizen Residents from the U.S.

Meanwhile, the number of non-citizen residents from the U.S., such as international students or other visa holders, has grown significantly. In 2010, only 3,728 such individuals held Canadian work permits. By 2023, this number surged to 17,353, making up over 30% of all U.S.-based temporary workers in Canada.

Underlying Causes

Policy changes in Canada’s Temporary Foreign Worker Program (TFWP) in 2013 and 2014 introduced stricter requirements, contributing to the decline in U.S. citizen workers. Non-citizen residents, on the other hand, are drawn to Canada’s more open immigration pathways, as they often lack the benefits of free trade agreements like CUSMA (formerly NAFTA) that facilitate easier entry for U.S. citizens.

Employment Patterns and Sectors

U.S. citizens and non-citizen residents tend to use different work permit pathways. Citizens often leverage free trade agreements for professional roles or intra-company transfers, while non-citizens face more stringent requirements and rely on alternative immigration streams.

Economic Impact and Context

Despite the decline in U.S. citizen workers, Canada’s demand for temporary foreign workers has risen. In 2024, over 3 million non-permanent residents were in Canada, with half earning income in the country. Non-citizen residents are increasingly filling labor gaps, particularly in sectors facing shortages.

These trends highlight the evolving migration dynamics between the U.S. and Canada, driven by policy changes, trade agreements, and shifting labor market needs.

Source: Statistics Canada Report

Summary of Key Findings

The report outlines several key trends that define the current state of temporary foreign workers from the U.S. in Canada. Firstly, the number of U.S. citizens entering Canada as temporary workers has dropped by over 30% since 2010, marking a significant downturn in this migration pathway. Conversely, non-citizen residents of the U.S. have become a growing demographic, now representing more than 30% of all U.S.-based temporary foreign workers in Canada by 2023.

Broader Migration Patterns and Policy Influences

The shift in migration patterns is further influenced by broader policy changes in the U.S. As the U.S. has implemented more restrictive immigration policies, skilled foreign workers with uncertain immigration status in the U.S. are increasingly turning to Canada as a more stable alternative. This trend is particularly evident among international students and other visa holders who face challenges in securing permanent residency in the U.S. As a result, Canada’s more open immigration system has become an attractive option for these individuals seeking better opportunities.

Policy Changes and Their Impact

The introduction of stricter requirements under Canada’s Temporary Foreign Worker Program (TFWP) in 2013 and 2014 played a significant role in reducing the number of U.S. citizen workers. These changes included more rigorous oversight, higher fees, and stricter caps on the number of temporary foreign workers employers could hire. While these measures were intended to protect the Canadian labor market, they also created barriers for U.S. citizens seeking temporary work in Canada.

Non-Citizen Residents and Alternative Pathways

For non-citizen residents in the U.S., such as international students or work visa holders, Canada offers alternative immigration pathways that are not as readily available to U.S. citizens. These individuals often navigate Canada’s immigration system through streams like the International Mobility Program (IMP) or other specialized work permits. While these pathways may involve more requirements than those available to U.S. citizens under free trade agreements, they provide opportunities for non-citizen residents to gain work experience in Canada, which can be a stepping stone to permanent residency.

Implications for the Labor Market

The growing reliance on non-citizen residents from the U.S. reflects Canada’s efforts to address labor shortages in key sectors. As certain industries continue to face workforce gaps, temporary foreign workers play a critical role in filling these vacancies. The increase in non-citizen residents from the U.S. suggests that Canada is leveraging its immigration system to attract skilled workers who might otherwise be limited by restrictive policies in the U.S.

Conclusion

The Statistics Canada report underscores the complex and evolving nature of labor mobility between the U.S. and Canada. While the number of U.S. citizens working temporarily in Canada continues to decline, the rise of non-citizen residents from the U.S. highlights Canada’s ability to adapt to changing migration patterns. These trends are shaped by a combination of policy changes, economic needs, and the interconnected nature of the two countries’ labor markets.

Conclusion

The Statistics Canada report highlights a significant shift in the migration patterns of temporary foreign workers between the U.S. and Canada. The decline in U.S. citizens working in Canada, coupled with the rise of non-citizen residents from the U.S., underscores the complex interplay of policy changes, economic needs, and labor market dynamics. These trends reflect Canada’s adaptability in addressing labor shortages while navigating the challenges of international migration.

FAQ

Why has there been a decline in U.S. citizens working temporarily in Canada?

The decline is primarily due to stricter requirements introduced in Canada’s Temporary Foreign Worker Program (TFWP) in 2013 and 2014, which included more rigorous oversight, higher fees, and stricter caps on temporary foreign workers.

Who are non-citizen residents of the U.S. working in Canada?

Non-citizen residents of the U.S. include international students, work visa holders, and other visa holders who are not U.S. citizens but reside in the U.S. temporarily.

How have policy changes impacted U.S. citizens and non-citizen residents differently?

U.S. citizens have faced stricter requirements under the TFWP, while non-citizen residents have utilized alternative immigration pathways like the International Mobility Program (IMP) to work in Canada.

What economic implications do these trends have for Canada?

Canada is addressing labor shortages in key sectors by relying on non-citizen residents from the U.S., who fill critical workforce gaps and contribute to economic growth.

What does the future hold for temporary foreign workers in Canada?

The future is likely to see continued reliance on non-citizen residents from the U.S. as Canada adapts its immigration policies to attract skilled workers and address ongoing labor market needs.