While number of workers increased, Canadians and the economy saw mixed results
The substantial increase in temporary foreign workers in Canada— a nearly 20-fold increase over a recent 20-year period—has resulted in both benefits and costs for the economy, finds a new essay published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Issues around temporary foreign workers tend to be controversial not only in Canada but throughout the world, and while the significant increase in temporary foreign workers in Canada has resulted in some negatives, there are also many positives that should be considered,” said Morley Gunderson, author of Temporary Foreign Workers in Canada: Boon or Bane?
The essay summarizes the various temporary foreign worker programs that exist in Canada and have resulted in a high number of temporary foreign workers in the labour force.
Under the two temporary foreign worker programs (the Temporary Foreign Worker Program and the International Mobility Program), the number of temporary foreign workers in Canada increased from 66,640 in 2000 to a staggering 1.27 million in 2023—nearly a 20-fold increase.
Not surprisingly, the recent surge in immigration and temporary foreign workers has prompted questions about the associated benefits and costs. The positives of these programs include the obvious benefit to temporary foreign workers themselves, and the fact that they can fill labour shortages in Canada, sometimes at relatively low cost, and may permit Canadians to simultaneously move into more skilled areas professionally.
However, temporary foreign workers can sometimes be exploited. They can also displace some Canadian workers or put downward pressure on wages and thereby discourage capital investment.
“It is not surprising that the substantial increase in temporary foreign workers in Canada in recent years has prompted a change in attitude among Canadians about the benefits and drawbacks of immigration,” Gunderson said.
“Ultimately, more research is needed to estimate the economic impact of TFW immigration to facilitate evidence-based policy decisions.”
Click here to read the full study: Temporary Foreign Workers in Canada: Boon or Bane?
