TERRACE, B.C. – A coalition of local governments across the Northwest is formally urging the federal government to create a special immigration zone for the region, warning that new federal rules restricting temporary workers and students are threatening the survival of local businesses.
Without a steady supply of newcomers, businesses from hotels to restaurants have said they could be forced to close their doors.
“In Terrace, the hoteliers, every single one from Thornhill to Terrace, said they would close down on the sheer fact they would lose almost all, if not all, of their housekeeping staff,” said the City of Terrace’s economic development officer.
The proposed solution is to create a special economic zone from Prince Rupert to Smithers, including Terrace and Kitimat. This would ease federal immigration restrictions for our region and make it easier for people already here on work or study permits to stay and become permanent residents.
The Northwest is facing a perfect storm in its labour market. A wave of baby boomer retirements, a smaller local youth population, and the massive workforce demands of huge industrial projects like LNG Canada and major mines have created a critical shortage of workers for frontline service jobs.
The federal government opened the doors to more temporary workers between 2021 and 2024 to address a national labour shortage. But after a larger-than-expected influx led to housing and healthcare crises in major urban centres, Ottawa is now clamping down with new restrictions.
Local leaders argue that our region’s situation is unique and should be exempt from these new rules.
The Mayor of Terrace, who recently spent a day trying to recruit new doctors to the area, emphasized how interconnected the issue is. “I took them to the coffee shop. I took them to [local businesses] that are enjoyable. How interesting would the town be if I didn’t have all those places to take them to?” he asked, highlighting that if service businesses close, it becomes harder to attract professionals like doctors.
The policy shift is also having a profound human impact. A representative from Skeena Diversity, the local agency that assists newcomers, described the situation for families who have already established their lives here.
“They’ve spent so much money, so much effort… They’ve brought their families and now they’re being told we might not renew your spouse’s work permit,” she said. “Can you imagine if a family of five was living on one income?”
The coalition of northwestern local governments has written to the federal immigration minister and started a petition campaign to advocate for treating the Northwest’s unique workforce needs differently.
