In Canada, there is a debate among federal and provincial officials regarding the impact of the temporary foreign worker program on young Canadians’ job opportunities. While some politicians, such as Conservative Leader Pierre Poilievre and B.C. Premier David Eby, have called for the program’s reform or elimination, experts suggest that migrant workers are not the root cause of the issue. According to Mark Holthe, an immigration lawyer from Alberta, the temporary foreign worker program mandates that employers demonstrate the unavailability of Canadian workers for the job and ensure payment of prevailing wage rates, aiming to prevent wage suppression.
Holthe pointed out that the real challenge lies with international students who can secure open work permits for up to three years after graduation. The influx of international students transitioning to work permits may be saturating the labor market and impacting job opportunities for young Canadians. The government data reveals that over a million individuals possessed valid permits to study at Canadian educational institutions in September 2024.
Moreover, a report by Desjardins highlights the impact of relaxed work restrictions for non-permanent residents during the pandemic, leading to a surge in the population of young workers. The report suggests that as economic activities normalize, the excess labor supply may outpace demand, resulting in increased youth unemployment rates. Factors contributing to high youth unemployment also include artificial intelligence affecting job prospects and cuts to the public sector, which disproportionately affect young individuals.
Fabian Lange, an economics professor at McGill University, attributes the high youth unemployment rate to business cycle fluctuations amid economic uncertainties, such as the Canada-U.S. trade war. He emphasized that youth unemployment serves as an indicator of economic conditions, with hiring slowdowns affecting new entrants into the labor market first.
Prime Minister Mark Carney addressed the issue by discussing policies to decrease immigration levels and reviewing the effectiveness of the temporary foreign worker program. Additionally, changes in international student permits and work restrictions have been implemented to manage labor market dynamics. The overall goal is to improve Canada’s economic situation to mitigate youth unemployment challenges.
As the government aims to stabilize the labor market, the reduction in international student numbers is expected to have a gradual impact on youth unemployment over the coming years. The adjustments in immigration policies and population growth targets are projected to create a more balanced labor market, leading to improved job prospects for Canada’s youth.