Do Temp Foreign Workers Impact Jobs for Young Canadians?
Canada’s job market is experiencing some debate over the role of temporary foreign workers (TFWs) amidst high youth unemployment rates. Recently, political leaders have called for changes to the TFW program, suggesting it might be hindering young Canadians from securing well-paying jobs. However, experts urge us to look a bit deeper, noting that the real issues may lie elsewhere.
For instance, Conservative Leader Pierre Poilievre and British Columbia’s Premier David Eby have both suggested that the TFW program is causing wage stagnation and limiting job opportunities for younger Canadians. Yet, Mark Holthe, an immigration lawyer based in Alberta, points out that the TFW program is designed to ensure employers prove there are no available Canadians to fill the positions before hiring a foreign worker. This includes demonstrating compliance with the prevailing wage rate, which is meant to prevent downward pressure on wages. In essence, the program strives to ensure that it’s not taking jobs away from Canadian citizens.
However, the shift in focus should be on the growing number of international students transitioning to open work permits after graduation. These permits can be valid for up to three years and allow international students to gain work experience in Canada. The influx of international graduates into the job market may have a more pronounced effect on youth employment than TFWs. Holthe suggests that when international students are willing to accept lower-paying jobs, it can lead to wage compression for varying roles, including entry-level positions typically sought after by young Canadians.
According to Statistics Canada, over a million individuals are currently enrolled in Canadian post-secondary institutions, and many are moving into the workforce shortly after graduation. The sheer number of graduates can create competition for job openings, which impacts youth unemployment rates. A report from Desjardins highlights how relaxed work restrictions during the pandemic led to a notable rise in the number of young workers, creating a surplus that, as the economy normalizes, has outpaced the demand for labour.
The report also identifies various factors contributing to the current youth unemployment rate of 14.5%, including technological advancements like artificial intelligence, which can replace entry-level positions, and cuts to public sector jobs that typically target younger workers. When government budgets tighten, it’s often youth positions that disappear first, compromising the pathways from education to stable careers.
Economic cycles also play a crucial role. Fabian Lange, an economics professor at McGill University, points out that youth unemployment acts like a “canary in the coal mine” in times of economic change. As businesses face uncertainty, hiring slows down, and youth—often the most vulnerable in the job market—bear the brunt of these shifts, making it crucial for the government to enact supportive policies.
On the policy front, Prime Minister Mark Carney stated that while the TFW program serves a purpose, a review is necessary to ensure it aligns with Canada’s broader immigration framework and economic needs. In the interim, the government has also been adjusting work limits for international students, capping their work hours while studying but allowing unlimited hours during scheduled breaks. This is expected to take time to impact youth employment positively.
For international job seekers contemplating a move to Canada, understanding these dynamics is essential. The job market is competitive, and knowing how to navigate the pathways to employment—including exploring options like the Express Entry system for permanent residency—can be pivotal. Our website, VisaJobsCanada.com, focuses specifically on Canadian jobs that offer visa sponsorship to international applicants, ensuring you have access to opportunities supported by employers willing to assist with the necessary immigration processes.
As Canada’s economy adjusts and policies evolve, those looking to work in Canada should stay informed and take advantage of avenues that fit their career aspirations. It’s about understanding the landscape and positioning yourself effectively within it.
What do you think?
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