Updates from the Commissioner for Employers -September 2024
Message from Nancy Healey, Commissioner for Employers on the Recent Changes to the TFW Program:
"I am disappointed but not surprised about the recent announcement of changes to the Temporary Foreign Worker Program. This effective program, which balances the needs for workers, employers, and Canadians as a whole, is being treated as a scapegoat. The TFW program, which brings in 240,000 people (1% of the Canadian Labour Force), is being lumped in with other non-permanent immigration streams which have less rigour around job and worker protections.
It is suggested that the TFW Program has been used to circumvent hiring talented workers in Canada, as the press release states “employers in Canada have a responsibility to invest in the full range of workers available in this country, such as young people, newcomers, and persons with disabilities, who are too often an untapped economic resource in Canada.”
Here are the facts:
In order to hire a TFW an Employer must go through a Labour Market Impact Assessment (LMIA). An LMIA confirms:
-there is a need for a temporary foreign worker
-no Canadians or permanent residents are available to do the job
LMIA requirements include that employers must demonstrate that they sought workers from underrepresented groups, including:
-Indigenous peoples
-vulnerable youth
-persons with disabilities
-newcomers to Canada, and asylum seekers with valid work permits
Vulnerable youth is defined as young people who face barriers to employment, developing basic employability skills and gaining valuable job experience to assist them in making a successful transition into the labour market or to return to school.
These barriers for youth may include but aren't limited to:
-challenges faced by recent immigration youth
-youth with disabilities
-lone parent youth
-youth who haven't completed high school
-Indigenous youth, and youth living in rural or remote areas
The government press release also states, “employers are reliant on the Program”.
Here are the facts:
TFW’s in Canada via the TFW Program:
-240,000 (1% of Canadian Labour Force)
-70,000 Seasonal Agriculture Program
-170,000 other streams Canada’s Labour force is 20 million
The press release also indicates that there are 1.4 million unemployed people in Canada. While there may have been 1.4 million unemployed people in June 2024, as referenced in the not all of these individuals are looking for work.
-In June, the number of Canadians receiving regular Employment Insurance (EI) benefits totalled 474,000, up 1.3% (+6,000) from a month earlier. This was the second consecutive monthly increase. Prior to the increases in May and June, the number of regular EI beneficiaries had held relatively steady since September 2023.
Labour shortages persist and will continue in the next decade. More people are set to retire than enter the labour force. Canada’s declining fertility rate leaves us with the lowest number of young people to enter the labour force and take on entry level jobs. The notion that because the job vacancy rate has returned to pre-pandemic levels does not equate to a lack of labour no longer being an issue for employers. In fact, even before the pandemic, labour shortages were being identified as a major concern for employers. Further, according to the Bank of Canada’s Benchmarks for Labour Market Health: 2024 Update, low-wage occupations have not recovered from the economic shock of COVID-19
“After the significant decline in employment during the COVID-19 recession, employment in low-wage occupations recovered partially but has since remained below pre-pandemic levels. In contrast, employment in other occupations has outpaced average employment growth. This suggests that excess tightness in the labour market during the post-pandemic economic recovery may have enabled workers in low-wage occupations to reallocate to other occupations.”
According to Emploi-Québec, by 2030 there will be 1.6 million vacant jobs in Quebec. British Columbia is expected to have over a million (1,017,000) job openings between 2022 and 2032. Ontario too is anticipating over a million job vacancies. Sector after sector have also raised alarm bells about labour shortages.
The narrative around Canada’s Temporary Foreign Worker program is being driven by unsubstantiated anecdotes. The facts prove that the Temporary Foreign Worker Program has the necessary controls in place to protect foreign workers, and to ensure that these foreign workers complement Canadian workers and sustain viable business operations. Employers are doing their part to drive the Canadian economy and would greatly benefit from a federal government that enhances coordination between departments and champions evidence-based public policy."
Additional Info
Source : News Bulletin -Commissioner for Employers