The recent call to abolish the temporary foreign worker program by Conservative Leader Pierre Poilievre has reignited discussions around its impact, linking it to a surge in youth unemployment reaching approximately 14.5% during the summer months. While some economists caution against directly attributing the program to challenges faced by young Canadians in securing employment, concerns have long been raised about its potential negative consequences.
Data from the federal government reveals that in 2024, 238,157 temporary foreign worker positions were approved, a significant increase from 108,988 in 2018 before the pandemic, despite remaining relatively steady from the previous year. The reliance of some employers on the program has raised alarms among experts.
One major concern revolves around the impact on wages and innovation. Critics argue that the program, particularly the low-wage stream, could hinder wage growth and stifle technological advancements in the long term. By offering an alternative to raising wages or investing in technology, the program may deter businesses from seeking innovative solutions to labor shortages.
Additionally, the program’s tie of workers’ permits to specific employers creates a power imbalance, leaving workers vulnerable to exploitation or job insecurity. This dependency on employers for their residency status can lead to abusive practices or unfair treatment of temporary foreign workers.
Over the years, the program has faced various regulatory changes in response to economic fluctuations. However, the back-and-forth adjustments have been criticized for lacking a consistent, long-term solution. Experts suggest phasing out the program gradually, introducing a new fee structure, and focusing on permanent immigration solutions to address labor market needs effectively and sustainably.
Another proposed fix involves greater government oversight to ensure businesses justify their use of the program transparently. Providing temporary foreign workers with more flexibility through open work permits and clearer pathways to permanent residency could alleviate some of the program’s inherent challenges and protect workers’ rights.
While stakeholders like Osborne Burke from Victoria Co-operative Fisheries advocate for the program due to labor shortages in their communities, others emphasize the importance of reevaluating and potentially reforming the temporary foreign worker program to align with the country’s long-term economic and immigration goals.