The latest focus on the temporary foreign worker program arises as Conservative Leader Pierre Poilievre suggests its elimination, attributing a spike in youth unemployment to foreign workers, with rates reaching about 14.5% during the summer.
While some economists caution against directly linking the program to challenges faced by young Canadians in securing employment, concerns have long been raised about the program’s reliance by some employers and its potential drawbacks. Data reveals a significant increase in approved temporary foreign worker jobs in Canada, with 238,157 jobs approved in 2024 compared to 108,988 in 2018, before the pandemic.
One of the primary concerns regarding the program is the impact on wages and innovation. Economists argue that the program, particularly the low-wage stream, could stifle wage growth and innovation by providing an alternative option for employers to hire foreign workers instead of investing in technology or raising wages to attract local applicants.
The program’s structure, which ties workers’ permits to a single employer, creates a power imbalance and potential exploitation issues, according to experts. Suggestions for reform include phasing out low-skilled streams, implementing a new fee structure, and offering more pathways to permanent residency for workers.
Calls for government intervention to ensure transparency and fairness in the program have also been made, with proposals to grant open work permits to temporary foreign workers and enhance pathways to permanent residency. Business owners express openness to program adjustments but emphasize its importance in certain sectors while advocating for collaborative solutions with industry stakeholders.
