Some federal and provincial officials in Canada are suggesting that the temporary foreign worker program is hindering young Canadians from securing well-paying jobs. However, experts argue that migrant workers are not the root cause of the issue, pointing instead to potential problems within other immigration channels.
Conservative Leader Pierre Poilievre and B.C. Premier David Eby recently called for the elimination or reform of the temporary foreign worker program, alleging that it is displacing young workers and depressing wages. Immigration lawyer Mark Holthe countered these claims, explaining that the program mandates employers to demonstrate the unavailability of Canadian workers for a job position and to pay the prevailing wage rate, aiming to prevent wage suppression.
Holthe highlighted the challenge posed by international students who can acquire open work permits post-graduation, valid for up to three years, potentially influencing the labor market for young Canadians. He expressed concerns about the significant number of international students transitioning to work permits concurrently, impacting employment opportunities for local youths.
A report from Desjardins identified the relaxation of work restrictions for non-permanent residents during the pandemic, including allowing international students to work more than 20 hours weekly, as a factor contributing to the surge in the young workforce. However, as economic activities normalized post-pandemic, the labor supply surpassed demand, leading to increased youth unemployment rates.
Fabian Lange, an economics professor at McGill University, attributed the high youth unemployment to business cycle fluctuations, exacerbated by economic uncertainties such as the Canada-U.S. trade war. Lange stressed that improving Canada’s economic conditions is crucial to reducing youth unemployment rates, as businesses are currently hesitant to hire new employees amidst the economic turbulence.
Prime Minister Mark Carney emphasized the government’s commitment to reviewing the temporary foreign worker program and overall immigration system, aiming to achieve a decline in immigration as a proportion of the population. The government’s policies are aimed at addressing concerns raised by business leaders regarding tariffs and the need for foreign workers in the workforce.
In response to declining international student permits and restrictions on off-campus work hours, concerns were raised about the potential impact on youth unemployment. While these changes may influence job opportunities for young Canadians, the effects are expected to manifest gradually over time.
The government’s decision to reduce temporary and permanent immigration levels in 2024 contributed to a slowdown in population growth, which could potentially benefit Canada’s youth job market by balancing labor supply and demand. This adjustment may lead to improved job prospects for young workers, aligning the youth unemployment rate with the economic landscape.