By Jock Finlayson

Canada has a long tradition of attracting immigrants to become permanent residents.  In many ways, immigration built this country and was the foundation for much of the growth in the post-war era.

More Mobile Migrations

The context for international migration, however, is changing.  Greater international mobility, instant access to information from around the world, increasingly seamless connectivity and growing trade flows have all made international migration a possibility for a rising share of the world’s population.  The result is an increase in the volume and types of movement of people between jurisdictions.  This includes substantial numbers of “temporary” migrants who come to relatively affluent countries like Canada for work or education.

More Temporary Foreign Workers (TFWs)

While Canadian immigration policy remains focused on permanent settlement, recent years have seen a noticeable jump in “temporary foreign workers” (TFWs).  By 2011, the stock of TFWs in Canada stood at 300,000, up from 141,000 in 2005.  This trend reflects several factors:
1) the country’s aging population;
2) the existence of skill shortages in some occupations;
3) more general labour shortages in certain regions; and
4) surges in labour demand occasioned by major project development in resource-related industries—particularly in Western Canada.

An About Face On TFWs

The presence of TFWs in Canada has sparked unfavourable public commentary and a growing political debate.  Having relaxed the rules to ease the entry of foreign workers only a few years ago, by the spring of 2013 the Harper government reversed course—in the face of a handful of well-publicized cases where it seemed that TFWs were gaining employment at the expense of Canadians.

Thus, in April the federal government toughened the rules for employers wanting to bring in non-permanent foreign personnel.  Henceforth, TFWs will have to be paid the “prevailing wage rate” where previously there was scope to pay some of them a bit less.  Employers won’t be permitted to make use of TFWs as part of an effort to “outsource” Canadian-based jobs.

Most importantly, the government is re-assessing the process by which it issues a Labour Market Opinion (LMO) enabling an employer to use TFWs to fill vacant positions.  In general, the government will issue a positive LMO only when the employer applicant has demonstrated that it has made an effort to find a suitably qualified Canadian for the job.  Looking ahead, the requirements to obtain a positive LMO are expected to become more stringent.

TFW Fears Largely Unfounded

This raises a question that hasn’t been addressed in the many media reports on TFWs: what kinds of people are actually entering Canada under this program?  A close look at the data suggests that the fears surrounding the TFW program are exaggerated.

Recall that by 2011, some 300,000 TFWs were in the country.  Of these, 36,000 were here according to the provisions of international trade agreements to which Canada is a party.  This includes 21,000 individuals working in Canada under rules established by the North American Free Trade Agreement to facilitate labour mobility and the entry of business visitors and intra-company transferees within the NAFTA region.

Another 25,000 TFWs were here under a special program for “live-in caregivers” who look after children or provide assistance to disabled and elderly Canadians.  These are jobs that few Canadians want to take.

Approximately 24,000 TFWs are temporary agricultural workers that many farmers depend on harvest their crops and undertake other seasonal work that Canadians aren’t interested in doing.

More than 65,000 foreign workers are in Canada as part of reciprocal arrangements with other developed countries whereby young adults can obtain one or two-year visas to work in the other country.  Britain and Australia are countries with which Canada has long maintained such labour reciprocity agreements.   These kinds of exchange programs provide young Canadians with opportunities to travel and gain cultural and work experience abroad.  In return, we provide similar opportunities to young people from other countries.

Some 36,000 foreigners classified as TFWs are actually highly-qualified researchers, university instructors, physicians and other health personnel who are permitted to spend time working in Canada.  These individuals make important contributions to Canadian research and health care institutions.  Because those in this category are entitled to be accompanied by their spouses while in Canada, this pushes up the number of TFWs by another 20,000 or so.

Misperception Denies Data

Add it all up, and it turns out that perhaps 100,000-125,000 of the 300,000 TFWs in Canada entered based on applications from employers seeking a positive LMO from the federal government.   This includes temporary foreign workers employed by mining and energy companies, restaurant and foodservice establishments, the construction sector, and tourism operators.

While it is legitimate to ask to what extent public policy should allow Canadian industries to become dependent on large-scale pools of TFWs to run their operations, a look at the actual breakdown is key. The data indicates that temporary foreign workers are making a useful contribution to our economy and occupy only a small position in the overall Canada labour market which now consists of 17.7 million employed individuals.

Jock Finlayson is the executive vice-president of the Business Council of BC.

(PeopleTalk Summer 2013)