Why are so many North American and European countries restricting immigrants?

In recent years, immigration has become a hotly debated topic, with several countries imposing new restrictions on incoming migrants, especially those in low-wage sectors or on temporary visas. These measures reflect growing concerns over economic strain, public services, housing shortages, and even rising xenophobia. Here’s a look at some of the latest developments:

Canada cracks down on low-wage workers

Canada has recently announced a significant reduction in its intake of low-wage temporary foreign workers (TFWs). Starting in September 2024, employers in regions with unemployment rates of 6% or higher will be prohibited from hiring low-wage TFWs. Additionally, the cap on the percentage of TFWs that employers can hire has been halved from 20% to 10%. This change is part of Canada’s broader strategy to address the challenges posed by rapid population growth, which has put immense pressure on housing and public services.

Furthermore, Canada recently implemented a two-year cap on international student visas. This backtracking on the country’s famed open-door policy was largely driven by the belief that the influx of temporary residents, including international students, was putting a strain on the country’s resources, services and housing. The restrictions are particularly significant in popular provinces like Ontario, British Columbia, and Nova Scotia.
The rationale behind these restrictions is multifaceted. The Canadian government has been under increasing pressure to address the country's severe housing crisis, with many Canadians blaming the influx of migrants for exacerbating the issue. While critics have argued that the problem lies more with policy failures and employer exploitation rather than with the migrants themselves, it has nevertheless translated into policy changes that could potentially impact a large host of immigrants, including its large Indian diaspora..

Australia’s student intake restrictions

Australia has also taken steps to curb immigration, specifically targeting international students. The Australian government recently more than doubled visa fees for international students and imposed caps on university intakes. This move is aimed at reducing the country’s net migration levels, which surged to over 5 lakh in 2022-2023. The new measures are expected to bring this number down to half that by 2024-2025, as per reports.

These restrictions are partly a response to concerns over the strain that a large student population places on Australia's housing market and public infrastructure. Similar to Canada, the government is trying to balance economic needs with social and public service capacities.

A global trend and public backlash

Beyond Canada and Australia, several other countries are adopting similar approaches. The United Kingdom, for instance, has been tightening its immigration policies post-Brexit, particularly for low-skilled workers. In the United States, debates continue over restricting certain categories of work visas, with arguments often centred on protecting domestic jobs and addressing security concerns.
These policy shifts have not gone unnoticed or unchallenged. In Canada, for instance, advocacy groups like the Migrant Workers Alliance for Change have strongly criticised the government’s decisions. They argue that these measures scapegoat migrants for broader economic issues like unaffordable housing and unemployment, rather than addressing the root causes such as wage stagnation and poor housing policies. Moreover, the discourse around these issues has taken an increasingly xenophobic tone, further fueling public protests and resistance from migrant communities.

Impact on Indians

Naturally, the recent immigration restrictions in countries like Canada and Australia are likely to have significant repercussions for Indians and people of Indian origin, who make up a large portion of the migrant workforce and student population in these nations.

India has been one of the top sources of TFWs and international students in Canada, a country that boasts nearly 3 million residents of Indian origin. In 2023 alone, approximately 26,495 Indian workers reportedly entered Canada through the Temporary Foreign Worker Program, making India one of the leading contributors to this workforce. The reduction in the intake of low-wage TFWs will disproportionately affect Indian workers, many of whom rely on these opportunities for livelihood.
Moreover, the cap on new international student visas has reportedly already led to a noticeable decline in the number of Indian students arriving in the country. Reports indicate that this cap, along with increased financial requirements for study permits, is discouraging potential Indian students from applying. The situation is further complicated by diplomatic tensions between Canada and India, which have contributed to a decline in visa approvals and student enrollments from India. The decline is expected to continue, further straining the prospects for Indian students seeking education abroad and impacting Canadian institutions that heavily depend on these students for revenue.

In fact, the recent shift in federal immigration policies has reportedly placed more than 70,000 international student graduates at risk of deportation. These graduates, many of whom have already completed their studies and are working in Canada, may face deportation due to changes in the rules governing post-graduate work permits and pathways to permanent residency. The country is witnessing massive nationwide protests to amend or revoke or amend this policy.
As for Australia, where Indian students form a significant proportion of the international student body, the new visa fee hikes and intake restrictions are likely to deter many from pursuing higher education in the country. This could lead to a decline in the number of Indian students and, by extension, reduce the cultural and economic contributions that these students bring to Australian society.

Given Australia’s efforts to curb its net migration levels, Indians who are currently in the country on student visas or temporary work permits may face increased difficulties in transitioning to permanent residency or finding long-term employment.

As these countries tighten their immigration policies, Indians and people of Indian origin may find it increasingly challenging to secure work and study opportunities abroad. This could lead to a shift in migration patterns, with more individuals opting for other destinations or focusing on opportunities within India itself. Additionally, these changes may strain diplomatic relations, as India is a key partner for both Canada and Australia in terms of trade, education, and cultural exchange.