TORONTO — The restaurant industry in Canada is grappling with unprecedented labour challenges exacerbated by shifts in immigration policies, public sentiment, and evolving workforce needs. A webinar hosted by Restaurants Canada last week titled Immigration Cuts & What It Means for Canada’s Foodservice Industry, brought together key experts — Richard Alexander, EVP of Government Relations at Restaurants Canada; Daniel Hirschkorn, regulated Canadian immigration consultant-IRB director; and Diana Palmerin-Velaso, senior director of Future of Work at the Canadian Chamber of Commerce — to discuss the current state of immigration and its implications for the hospitality sector.
While immigration has historically provided a crucial workforce pipeline, changes in public and political narratives over the past three years have cast a shadow over its role. Palmerin-Velaso highlighted that Canada once embraced ambitious immigration targets, with the 2022 federal government initiatives addressing critical labour shortages. These measures included expanding the Temporary Foreign Worker (TFW) program and facilitating easier access for international workers. However, subsequent years have seen a sharp shift toward limiting both temporary and permanent immigration.
She said public trust in the immigration system is eroding — nearly six in 10 Canadians now believe immigration levels are too high, driven by concerns over housing, employment, and social services. Temporary residents, including international students and foreign workers, have faced growing scrutiny and blame for various economic challenges, such as wage stagnation and rising living costs.
For the restaurant sector, the stakes are high. Alexander emphasized that temporary foreign workers constitute only three per cent of the industry’s workforce, primarily filling critical roles such as cooks and supervisors. Yet, restaurants have become a focal point in anti-immigration rhetoric. Policies such as reduced LMIA (Labour Market Impact Assessment) durations, stricter eligibility requirements, and a 10 per cent cap on low-wage positions threaten the industry’s ability to retain its existing workforce.
“Restaurants Canada has lobbied extensively at federal and provincial levels, advocating for exemptions for rural and remote areas that rely heavily on temporary workers,” said Alexander, adding that despite 14 meetings with key cabinet members and even the Prime Minister’s Office, the government’s stance remains firm due to declining public support for immigration.
To address these challenges, Restaurants Canada has outlined a comprehensive strategy:
- Alternative workforce streams: Employers are encouraged to explore less restrictive immigration pathways, such as Francophone mobility programs and free-trade agreements with countries such as Colombia and Peru, which allow two-year closed work permits without LMIA requirements.
- Advocacy and public education: More than 367 media mentions have been leveraged to dispel misconceptions about immigration’s impact on local jobs. Proposed initiatives such as a youth career marketing campaign are being discussed to re-build trust and attract domestic talent to the hospitality sector.
- Enhanced settlement services: The proposed $40 million Ready-to-Work hospitality program would provide targeted settlement services, job matching, and language training for newcomers to support smoother workforce integration.
- Research and public opinion: A workforce-needs study and community engagement through polling and focus groups are planned to lay the groundwork for future advocacy efforts.
Alexander said Restaurants Canada is committed to “playing the long game, investing in research and advocacy to secure a predictable and stable labour supply for the future. In the meantime, collaboration between employers, policymakers, and advocacy groups remains critical to navigating this challenging period.”
By addressing these issues head-on, the Canadian restaurant industry can adapt to evolving immigration policies while championing its essential role in the national economy. As Hirschkorn noted, current policies are unlikely to change soon due to political pressures. However, tailored strategies, such as fostering relationships with refugee claimant organizations and preparing for stricter LMIA requirements, can help operators remain resilient.
