As debates continue over Canada's temporary foreign worker program, some experts argue that migrant workers are not the primary cause of job challenges for young Canadians. Recently, Conservative Leader Pierre Poilievre and British Columbia Premier David Eby called for significant reforms or the elimination of the program, claiming it restricts job opportunities for youth and suppresses wages.
Mark Holthe, an immigration lawyer from Alberta, countered these claims during an interview on CBC Radio's _The House_. He explained that the program mandates employers to demonstrate that no Canadian is available for the job and that they are offering the prevailing wage. "It's designed not to put downward pressure on wages," Holthe stated.
Holthe pointed out that the real issue may lie with international students who can obtain open work permits after graduation, which can last up to three years. This influx of international students into the job market could be affecting employment opportunities for young Canadians.
At a news conference, Poilievre emphasized the oversaturation of the labor market with low-wage workers, making it difficult for young Canadians to find jobs. He noted, "If you can have someone who says, 'Yes, I will work as the manager of your restaurant and I will for minimum wage,' well, then [employers] will pay minimum wage. There's no check and balance on it."
Statistics from the federal government reveal that over a million individuals held valid permits to study at Canadian universities, colleges, or CEGEPs in Quebec as of September 2024. Holthe mentioned that many international students are transitioning to open work permits, which could further impact the job market for young Canadians.
A report from Desjardins highlighted that Canada's decision to ease work restrictions for non-permanent residents during the pandemic led to a significant increase in the population of young workers aged 20 to 24. The report noted that as the pandemic recedes and economic activity normalizes, the surplus of available labor has outstripped demand, contributing to rising youth unemployment.
The report also identified other factors contributing to high youth unemployment, such as the impact of artificial intelligence on job prospects and budget cuts in the public sector, which often affect entry-level positions. According to Statistics Canada, youth unemployment remained high at 14.5 percent in August.
Fabian Lange, an economics professor at McGill University, described high youth unemployment as a "business cycle phenomenon." He explained that youth unemployment is particularly sensitive to economic fluctuations. "Youth unemployment, almost by definition, are all individuals just entering the labor market. They are all looking for jobs. So when hiring slows down, unemployment in that group is going to be the first to move rapidly," Lange said.
Lange anticipates that while politicians may propose various solutions, improvements in the overall economy are essential for reducing youth joblessness. He warned that if the economy enters a recession, youth unemployment is likely to rise further.
In response to these concerns, Prime Minister Mark Carney announced that the government is reviewing the temporary foreign worker program and the overall immigration system. He stated that immigration levels would be adjusted to ensure a balanced approach to labor market needs.
Recent data indicates a decline in international student permits issued in the first half of the year, with nearly 90,000 fewer permits compared to the previous year. The government also limited the number of hours international students can work off-campus while enrolled in classes, although they can work unlimited hours during scheduled breaks.
Holthe noted that the government's cuts to international student numbers will eventually impact youth unemployment, but it may take years to see significant changes. The Desjardins report suggested that a continued slowdown in population growth could improve job prospects for young Canadians by better balancing labor supply and demand.