Canadian politicians are debating the impact of the temporary foreign worker program on young Canadians’ job prospects. Some experts suggest that migrant workers are not the main issue and point to other immigration avenues as potential concerns.
Conservative Leader Pierre Poilievre and B.C. Premier David Eby recently called for a revamp or elimination of the temporary foreign worker program, alleging that it hinders young people from securing employment and drives wages down. However, Mark Holthe, an immigration lawyer in Alberta, highlighted that the program mandates employers to demonstrate the unavailability of Canadian workers and to pay the prevailing wage rate, aiming to prevent wage suppression.
Holthe expressed that the real challenge lies with international students who can acquire open work permits post-graduation, valid for up to three years. The influx of international students transitioning to work permits could be saturating the labor market and affecting job opportunities for young Canadians.
A report by Desjardins indicated that relaxed work restrictions for non-permanent residents during the pandemic led to a surge in young workers, potentially contributing to high youth unemployment rates. The report also mentioned other factors like artificial intelligence impacting job opportunities for young individuals and public sector cuts affecting youth employment.
Fabian Lange, an economics professor at McGill University, attributed Canada’s high youth unemployment to the business cycle, exacerbated by economic uncertainties such as the Canada-U.S. trade war. He emphasized the need for overall economic improvement to address youth joblessness effectively.
Prime Minister Mark Carney outlined government initiatives to reduce immigration as a proportion of the population and reassess the temporary foreign worker program’s effectiveness. He acknowledged business leaders’ concerns about tariffs and foreign worker availability, emphasizing the need for focused immigration policies.
Regarding international students, permits to study in Canada have decreased significantly, impacting youth unemployment. Ottawa’s limitations on off-campus work hours for international students aim to balance job opportunities for domestic youth. Holthe noted that reduced international student numbers could eventually alleviate youth unemployment but may take time to materialize.
The slowdown in population growth, partly due to federal government immigration decisions, could potentially improve job prospects for Canadian youth. As population growth stabilizes, the youth unemployment rate is expected to align more closely with economic conditions, offering better employment opportunities for young Canadians.