Over my 30+ years at CFIB, the Temporary Foreign Worker Program (TFWP) has long been one of the most contentious public issues we’ve faced.
While it is entirely reasonable to examine our immigration program and numbers at a time of higher unemployment, it is important that we do so armed with the facts and an understanding of the needs of our complex labour market.
Many small employers, particularly in certain sectors and regions like rural and remote areas, have very few new entrants into the workforce in their communities.
Feedback from our members also shows a decline in work ethic among parts of the entry level workforce. Just like in agriculture, there are some jobs in various sectors and regions, different types of work, or shifts that Canadians often don’t want to take. Temporary foreign workers frequently step in to do the jobs that Canadian workers, especially youth, are reluctant or unable to do. A Toronto student that had difficulty finding a summer job is unable to take a job in November cleaning hotel rooms in rural Quebec. An unemployed auto worker, who used to make $100,000 per year, is unlikely to move to small town Manitoba to wash dishes at the pizza place.
In our many detailed surveys, CFIB members have consistently supported limited use of the TFWP to fill persistent labour market gaps. While some suggest that labour shortages are simply a wage issue, our members tell us it is more complicated than that.
It is important to recognize that hiring a TFW is not cheaper for employers. To bring in just one entry-level worker, an employer typically pays about $10,000 in fees and permits, covers the worker’s return airfare, and helps secure and pay for housing. It is always far more expensive than hiring any locally available worker.
The program was made more flexible after the pandemic when there were record numbers of vacant positions. Now it is being tightened as the federal government has made major changes just last fall, including barring the hiring of low skilled TFWs in metropolitan areas with over 6% unemployment and limiting low wage TFWs to no more than 10% of an employer’s workforce in locations permitted to using them.
With 100,000 members across Canada, CFIB never hears only one point of view. I deeply respect the diversity of perspectives within our membership. We take our direction from the many surveys we conduct each year, and they show that the majority of small businesses support keeping the TFWP as a one tool to address critical labour shortages.
Thank you to all of our members for continuing to share your views with us. Please keep us posted on your perspective on this and any other issue. More than anything, thank you for your membership in CFIB.
Dan Kelly
President & CEO
Canadian Federation of Independent Business
