Amid debates by federal and provincial officials regarding Canada’s temporary foreign worker program hindering young Canadians from securing well-paid employment, experts suggest that migrant workers are not the root cause of the issue. They propose that other immigration pathways may be contributing to the problem.
Earlier this week, Conservative Leader Pierre Poilievre and B.C. Premier David Eby urged Ottawa to either revamp or eliminate the temporary foreign worker program, alleging that it was closing employment opportunities for the youth and driving down wages.
Contrary to these claims, immigration lawyer Mark Holthe emphasized that the temporary foreign worker program mandates employers to demonstrate the unavailability of Canadian workers for the job and that they are paying the prevailing wage rate. This framework aims to prevent wage suppression.
Holthe pointed out that the real concern lies with international students who can secure open work permits post-graduation, valid for up to three years. The influx of such students entering the workforce could be impacting the job market for young individuals.
The Desjardins report highlighted that the relaxation of work restrictions for non-permanent residents during the pandemic, including allowing international students to work more than 20 hours per week, led to a surge in the young workforce population. However, as economic activities normalized, the oversupply of labor surpassed demand, resulting in elevated youth unemployment rates.
Fabian Lange, an economics professor, attributed the high youth unemployment rate in Canada to the prevailing business cycle conditions. He explained that during economic uncertainty, businesses tend to retain existing employees rather than hire new ones, affecting youth job prospects.
Prime Minister Mark Carney underscored the government’s efforts to reduce immigration as a proportion of the population and review the temporary foreign worker program’s effectiveness. He emphasized the need for a focused approach to immigration policies to address business concerns regarding tariffs and foreign worker availability.
The government’s decision to reduce the number of hours international students can work off-campus and the decline in international student permits could impact youth unemployment in the long run. While these changes may take time to manifest, experts anticipate that a reduced labor supply among young workers could help balance the job market.
Overall, the evolving immigration landscape, coupled with economic conditions, plays a pivotal role in shaping youth employment prospects in Canada.
