The temporary foreign worker program in Canada has seen a surge in businesses’ demand for temporary workers, with employers being allowed to hire more than double the number of people through the federal program last year compared to five years ago. The program, designed to provide short-term relief to employers, has been scrutinized for its potential impact on the broader economy and the vulnerable position of workers. In 2018, employers were cleared to hire 239,646 temporary foreign workers, a rise from 108,988 in 2018. The growth coincided with the government loosening hiring restrictions to help businesses with post-pandemic labor shortages, which some economists criticized as undermining healthy competition for workers in a market economy.
The Canadian labour market impact assessment (LMIA) program has seen increased interest from various industries, with farm and greenhouse workers being the most in-demand roles. However, demand for other jobs is also increasing. Employers have turned to the program to fill roles ranging from administrative assistants to light duty cleaners, construction trade helpers, and labourers. The program has seen a rise in demand across the economy.
There aren’t always more temporary foreign workers in the nation just because there are more positive LMIA positions. An authorized employer may decide not to hire someone after all, for example.
However, it is indicative of employers’ growing interest in the programme, which is expanding by all measures. The number of temporary foreign workers in the nation reached a record high last year, according to work permit data released by Immigration, Refugees and Citizenship Canada. The records dating back to 2015.
Fast food chains and restaurants are a significant source of demand for temporary foreign workers, with roles such as cooks, food service supervisors, food counter attendants, and kitchen helpers receiving the most approvals last year. Food counter attendants saw a significant increase from 170 jobs in 2018 to 8,333 in 2023, with fast food operators being the top 10 employers cleared to hire the highest number of them. The relationship between the food service industry and the temporary foreign worker program has been fraught, with the federal government doubling the proportion of low-wage workers businesses could hire through the program in 2022. Some sectors, like food service, have been greenlighted to hire up to 30% of low-wage staff through the program.
Number of positions approved to be filled by temporary foreign workers
The temporary foreign worker program in Canada has been criticized for its lack of stability and power imbalance. Workers’ permits are tied to their employer, meaning they cannot easily quit to work for a rival business down the street. This has led to some businesses being cleared to hire more cooks, food service supervisors, and food counter attendants last year. However, some communities often lack the population base to meet the demand for labor, leading some workers to seek work abroad.
For workers, a lack of domestic opportunities is typically what pushes people to seek work abroad. Canada is appealing because it is one of the few countries where a temporary job can turn into a permanent residency. However, the experience of being a temporary foreign worker can be mixed. Some employers abide by their contracts and support workers in applying for permanent residency. However, others abuse their power and underpay workers, even withholding pay to compensate for the money spent on an LMIA. Workers are often afraid to speak up for fear of losing their status in Canada.
Economist Skuterud believes that the temporary foreign worker program can also affect the broader economy. He points to a paper suggesting the hiring of such workers correlates with lower earnings for Canadian workers in similar jobs and locations. Employers are required to offer temporary foreign workers at least the regional median hourly wage for the job in question. This program is not the only source of temporary workers in the country. International students also hold permits, as do workers under the wide-ranging international mobility program.
One way to decrease temporary residents is to make them permanent, ministers suggest. However, Skuterud believes growth in all three programs shows the government is moving away from its points-based immigration system and toward a more ad hoc approach where people try to parlay a work or study permit into permanent status. He believes that “it looks like a lottery and your ticket is a work permit.”
This spring, the federal government changed course on the temporary foreign worker program, tightening how many such workers a business could hire, citing changing labour markets and lower vacancies. Most employers are now limited to hiring 20% of low-wage staff through the program. While public pressure has mounted regarding the connection between immigration and housing affordability, ESDC spokesperson Liana Brault said the changes were unrelated and “solely based on employment numbers.”
There are different perspectives on how to improve the program. Groups like Migrant Alberta want easier access to permanent residency for migrant workers, while a recent senators’ report called for changes including an end to closed work permits.
