Federal government planning sharp cut to low-wage stream of temporary foreign worker program, sources say

Highlighting the contrasting views between a business group and the more objective Mike Moffatt:

…Dan Kelly, president of the Canadian Federation of Independent Business, said temporary foreign worker programs have been around for decades and have frequently been tightened or loosened over the years based on evolving labour-market needs.

He said the government’s moves to ease access to the program in 2022 were entirely justified at the time.

“There’s absolutely no question that coming out of the pandemic, the labour market was broken. There were hundreds of thousands of vacant positions, particularly in lower-skilled occupational categories, that desperately needed filling,” he said.

Mr. Kelly said he understands that Ottawa is now under pressure to cap access to the low-wage stream, but also urged the government to find the right balance.

“The challenge for government is I think most of them know that the politically popular solution is at odds with the economically viable solution,” he said. “Yes, the labour market has cooled a bit in Canada, but if we take out the temporary foreign worker program, then you better not complain about the line at the local restaurant or the increase in menu prices.”

Mike Moffatt, an assistant professor of business, economics and public policy at Western University who has previously advised the Liberal cabinet, said the 2022 changes went too far. He said reducing the use of the temporary foreign worker program would be good for wages in Canada, would help students find work and would encourage businesses to innovate.

He said he questions why fast-food restaurants in college towns such as London, Ont., are using the program.

“We’ve got thousands of students, thousands of international students, and we can’t find somebody to work at a Dairy Queen next to a college? It just doesn’t seem reasonable to me,” he said. “I think we have lost the plot here.”

Source: Federal government planning sharp cut to low-wage stream of temporary foreign worker program, sources say