Amid debates by federal and provincial officials over the impact of Canada’s temporary foreign worker program on young Canadians’ job opportunities, experts suggest that migrant workers are not the cause of the issue. Instead, they highlight potential concerns with other immigration pathways.
Conservative Leader Pierre Poilievre and B.C. Premier David Eby recently called for reforms or the elimination of the temporary foreign worker program, alleging that it hampers youth employment and drives down wages. However, immigration lawyer Mark Holthe explained that this program mandates employers to demonstrate the unavailability of Canadian workers and pay the prevailing wage rate to prevent wage suppression.
Holthe pointed out that the real challenge lies with international students who can secure open work permits post-graduation, valid for up to three years. The influx of international students transitioning to work permits could be influencing the labor market for young Canadians.
A report from Desjardins highlighted that relaxed work restrictions for non-permanent residents during the pandemic led to a surge in the population of young workers aged 20-24. However, as economic activity normalized, the oversupply of labor outpaced demand, leading to a rise in youth unemployment rates.
Fabian Lange, an economics professor, emphasized that high youth unemployment is closely tied to economic cycles, with hiring slowdowns affecting new entrants to the job market. He anticipates that addressing youth unemployment will require broader economic improvements rather than just programmatic interventions.
Prime Minister Mark Carney indicated that the government is revisiting immigration policies to reduce the proportion of immigrants in the population from seven to five percent. He acknowledged business concerns over tariffs and the need for foreign workers, emphasizing the importance of reviewing the efficiency of the temporary foreign worker program and the broader immigration system.
International student permits dropped significantly in the first half of the year, impacting potential job seekers. While these changes may influence youth unemployment, the effects may take years to manifest fully. Population growth slowdowns due to reduced immigration levels could potentially offer better job prospects for the youth demographic in the future, balancing labor supply and demand.
Overall, addressing youth unemployment in Canada requires a holistic approach that considers economic conditions, immigration policies, and labor market dynamics.
