Federal immigration reduction plans could harm N.L. economy, say advocates

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The Anti-Racism Coalition of Newfoundland and Labrador says the immigration levels plan included in Ottawa’s tabled budget will have a negative impact on the province.
CBC News reported in January that population growth in N.L. is largely driven by immigration. Statistics Canada estimates more than 15,000 immigrants and a net of over 11,000 non-permanent residents moved to the province between Jan. 1, 2021 and Sept. 30, 2024.
Prime Minister Mark Carney’s budget says 7.5 per cent of Canada’s population were temporary residents as of 2024, adding that an “unprecedented rate of growth” is no longer sustainable.
The budget lays out the federal government’s new target for permanent resident admissions at 380,000 per year for three years, which is down from the 395,000 admitted this year. The temporary resident admission target is being reduced dramatically to 385,000 in 2026 — it was 673,650 in 2025.
That’s worrying to Laurabel Mba and Sobia Shaikh of the Anti-Racism Coalition of Newfoundland and Labrador (ARC-NL).
Rural community worries
Mba said the budget, which hasn’t been voted on yet, doesn’t break down the proposed immigration reductions by province so it’s difficult to predict where it will be felt the most.
“It could heavily impact Newfoundland and Labrador more than it might impact Ontario or B.C., which aren’t dealing with the same labour shortages as we are in terms of an aging population and in terms of an outward migration in our province,” Mba told CBC Radio’s On The Go.
While the federal government has said in the budget it will consider “the unique needs of rural and remote communities,” questions remain surrounding what that would mean for small N.L. towns that often rely on temporary foreign workers.
The St. Mary’s fish plant, which was recently destroyed in a fire, was one business that employed many temporary foreign workers.
“Temporary workers, people who are immigrating to this province who are willing and want to live in rural communities, go there to support the employment and the economic value of that place,” said Mba.
“If we don’t have them, we’re going to see our economic profitability dip.”
Sobia Shaikh is a founding member and co-chair of the Anti-Racism Coalition of Newfoundland and Labrador. (Ted Dillon/CBC)
Sobia Shaikh, co-chair of ARC-NL, echoed the suggestion that a reduction in immigration would affect more than the immigrants themselves.
She said the province may start to see a reduction in some services and support residents have become used to when the workforce is bolstered by international workers.
Shaikh also said reducing immigration plays into harmful ideas.
“It’s based on racist ideas and white supremacist ideas that our province is being overrun by migrants,” said Shaikh.
A third confidence vote on the budget is expected the week of Nov. 17.
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