Some federal and provincial politicians in Canada are suggesting that the temporary foreign worker program is hindering young Canadians’ access to well-paying jobs. However, experts argue that migrant workers are not the primary issue, pointing to other immigration pathways as potential problems.
Conservative Leader Pierre Poilievre and B.C. Premier David Eby recently called for the temporary foreign worker program to be reformed or scrapped, alleging that it is excluding young Canadians from job opportunities and driving down wages. Immigration lawyer Mark Holthe explained on CBC Radio’s “The House” that the program mandates employers to demonstrate the unavailability of Canadian workers for a job and to pay the prevailing wage rate, aiming to prevent wage suppression.
Holthe highlighted international students transitioning to open work permits after graduation as a significant challenge. He expressed concerns about the large pool of international students competing for jobs, impacting opportunities for young Canadians. A report from Desjardins also noted that the relaxation of work restrictions for non-permanent residents during the pandemic led to a surge in the youth workforce, subsequently affecting youth unemployment rates.
Economist Fabian Lange emphasized that high youth unemployment is closely tied to economic cycles, with hiring slowdowns disproportionately affecting young job seekers. Lange suggested that improving the overall economic landscape is crucial for addressing youth joblessness, as politicians consider implementing programs to tackle the issue.
Prime Minister Mark Carney mentioned that policies are being enacted to reduce immigration as a proportion of the population, aiming to address concerns raised by business leaders regarding tariffs and the need for foreign workers. Discussions are ongoing on the effectiveness of the temporary foreign worker program and the broader immigration system in Canada.
In response to declining international student permits, changes in off-campus work hours, and reduced immigration levels, experts anticipate a gradual impact on youth unemployment over time. The adjustment in labor supply among young workers could potentially align job opportunities with economic conditions, leading to improved prospects for Canadian youth in the job market.