It’s not hyperbole to say that Canada has built an entire economy on exploiting cheap, foreign labour through TWFP, as well as the International Mobility Program (IMP). These are two slightly different programs that allow foreign nationals to work in Canada, with most going to Ontario. But contrary to its name, there is nothing “temporary” about the TFWP. Its original purpose was to remedy proven labour shortages while Canadians were hired and trained to eventually do the jobs in question. Meanwhile, the IMP allows international students to work—with or without a proven labour shortage—while they’re studying in Canada.
Between 2019 and 2023, the TFWP increased by 88 percent and the IMP increased 126 percent. They account for close to 1.58 million work permit holders, equal to roughly 7 percent of Canada’s labour force.
Taken together, the results of the TFWP and IMP are deplorable. The TFWP allows foreign nationals to be recruited abroad in vast numbers, brought to Canada, housed in degrading conditions, paid the minimum wage, forced to work long hours, pressured into not joining a union, and required to work for only one employer. Yes, the IMP is more flexible, but it’s more pernicious because it does not even pretend to address labour shortages.
Both schemes are also of course bad for Canadians themselves. The problem is especially grievous for young Canadians trying to get started in the labour market. Canada lost 40,800 jobs this past July, the unemployment rate is now 6.9 percent, and youth unemployment (those between 15 and 24 years old) is now 14.6 percent.
Both the TFWP and IMP are used as business models. Hiring foreign nationals at minimum wage keeps prices low and profits high—most notoriously in the hospitality and trucking sectors, but no industry seems untouched now.
Addicted to cheap foreign labour
The use of the TFWP in the healthcare sector, for example, has grown by an appalling 1,700 percent since 2000. That dramatic rise has no doubt been abetted by the absence of uniform standards and credential recognition among Canadian provinces. If medical personnel could move easily from one province to another, shortages could be filled by Canadians. But historically this has not been possible, and so medical institutions have had to turn to the TFWP. Ontario’s recent determination to solve this problem by speeding up recognition of 50 “in-demand” professions from other provinces is a step in the right direction, and hopefully not too little too late.
Meanwhile, the IMP is a vehicle for outright fraud, ranging from fake acceptance letters from bogus “colleges” to elaborate human-trafficking schemes. Not long ago, nearly 50,000 holders of foreign student visas were working and attempting to settle here, rather than studying at any Canadian university or college. Most were migrants from India, and some were trying to cross the border illegally into the United States. The RCMP is now working with Indian law-enforcement to investigate alleged links between dozens of “colleges” in Canada and two “entities” in India allegedly facilitating passage into the U.S. When we reflect that an astounding 4.9 million temporary visas are set to expire this year, we have reason to believe that this abuse, exploitation, and fraud are on a much larger scale that we understand.
The consequences for young Canadians
Both the TFWP and the IMP serve to keep wages artificially low and profits high, and to price Canadians out of the job market. It wouldn’t be wrong to view these programs as distortionary government subsidies or welfare for unproductive businesses. The effects disproportionately harm younger Canadians who are priced out of the labour market, given that temporary workers overwhelmingly earn less than the median wage. And yet, we’re constantly hectored about labour shortages, Canadians’ “unwillingness” to do certain jobs, and the need for foreign workers.
It shouldn’t take much intellectual effort to see that the use of foreign labour and the difficulties of employing younger Canadians are two sides of the same ugly coin. Foreign workers are more cooperative because they are bound to their employers like serfs. They face normally insurmountable barriers to joining unions and have no attachment to the community in which they’re expected to work. In comparison, the domestic population is generally better educated and rooted in the local community.
Young Canadians can afford to be discriminating and should rightly expect higher wages than foreign nationals. Employers should instead work harder to invest in and reward their domestic workforce. In any other era, this would have been obvious. But now there is little incentive for businesses to look beyond cheap, foreign labour.
To get an idea of the magnitude of our collective failure here, consider the following fact. A 2024 study by RBC Economics revealed that Canadian businesses are sitting on a stockpile of cash worth almost a third of our country’s GDP. In other words, Canadian companies have the means to invest in hiring and training Canadians, but simply refuse to do so. The results of this refusal are stagnant wages, structural unemployment, and a de-skilling of the domestic population.
