Politicians and experts debate if temporary foreign workers fuel youth unemployment in Canada, as international students face new restrictions.
Politicians challenge Ottawa’s program
Conservative Leader Pierre Poilievre and B.C. Premier David Eby are urging Ottawa to reform or abolish Canada’s temporary foreign worker (TFW) program, arguing it limits opportunities for young Canadians. Both leaders claim the system is driving down wages and locking domestic workers out of good-paying jobs.
Experts point to other pressures
Immigration lawyer Mark Holthe countered that the TFW program requires proof no Canadians are available before employers hire abroad, with rules ensuring prevailing wages are paid. He argued that open work permits granted to international students pose a greater challenge, as their availability and willingness to work at lower wages distort the labour market.
Impact of international students
According to federal data, over one million international students held valid permits in Canada in 2024, many transitioning into open work permits after graduation. A Desjardins report found that relaxed work restrictions during the pandemic led to a surge in young workers aged 20 to 24, outpacing labour demand and contributing to higher unemployment.
Youth unemployment remains high
Statistics Canada reported youth unemployment at 14.5 per cent in August. McGill University economist Fabian Lange described the trend as “a canary in the coal mine,” noting that hiring freezes caused by economic uncertainty hit new labour market entrants first. He cautioned that an approaching recession could further worsen the outlook for young job seekers.
Federal government response
Prime Minister Mark Carney said his government is working to lower immigration levels from seven to five per cent of the population in coming years. Ottawa has also reduced international study permits and reinstated limits on off-campus work hours for students. Holthe noted these measures may eventually ease pressure on youth employment but warned that meaningful change could take years.
Looking ahead
With population growth slowing and labour demand cooling, experts suggest youth job prospects may improve in the long term. Still, economists stress that the broader health of Canada’s economy will ultimately determine whether young Canadians see better employment opportunities.
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