Business leaders say improving temporary foreign worker program is one way to curb labour shortages

author avatar
Shelby Thevenot
Published: December 13, 2021

The pandemic has exacerbated long-standing labour shortages in Canada, and there is no simple solution.

The Canadian Federation of Independent Business (CFIB) reports more than half of small Canadian businesses are affected by labour shortages. These businesses may have been short staffed due to difficulties hiring, retaining or getting staff to work the hours needed.

On top of that, 16% of businesses say they have enough staff, but at a significant additional cost due to wage increases, flexible hours, or hiring bonuses, among others.

Discover if You’re Eligible for Canadian Immigration

As a result of these labour shortages, about a third of small businesses in June reported abandoning or delayed projects, and turning down contracts and sales.

CFIB says the solution is not as simple as raising wages as higher wages imply higher labour costs, which force up prices and generates inflationary pressure. However, business owners report that investment in automation and the use of the Temporary Foreign Worker Program (TFWP) appear to be the most promising.

When disaggregated by sector, temporary foreign workers most often saw high success rates in agriculture, and professional services. They were also often successful in addressing labour shortages in manufacturing, retail, and financial institutions and administration.

Despite their high success rate, only 16% of surveyed businesses reported using temporary foreign workers to fill empty positions. The restrictions in the TFWP make it time-consuming and expensive for most small businesses. For some it was "unworkable" as certain occupations do not qualify.

The CFIB says the solution to labour shortages requires many actions over a long period of time. However, investing in automation and improving the TFWP can be done in the short term.

The working-age population in Canada has been declining since the 1990s, and future projections expect the trend to continue. By 2050, Canada will have lost a significant portion of its working-age population if no changes are made.

To help businesses cope with Canada's demographic challenges, the CFIB recommends improving the TFWP to bring more workers in to Canada faster, and ensure a good fit between immigrants and the positions they fill. An improved TFWP would be more accessible to a broader level of skills and sectors, and allow for more pathways to permanent residency.

Discover if You’re Eligible for Canadian Immigration

© CIC News All Rights Reserved. Visit CanadaVisa.com to discover your Canadian immigration options.

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
Canada invites French-speaking Express Entry candidates to apply for PR
A shot of a beach in Vancouver, with people enjoying the day.
Canadian Experience Class candidates invited to apply for permanent residence
A shot of the Vancouver City skyline, with mountains in the background and a Canadian flag in the foreground.
Provincial nominees invited in first Express Entry draw of August
A shot of Moraine Lake in Banff National Park, located in Alberta, Canada.
Canada holds first permanent residence selection of skilled military recruits
Canadian flag on Office of Prime Minister building on Canada Day in Ottawa.
Top Stories
Canada publishes revised distribution of candidate scores within the Express Entry pool
Your citizenship by descent claim needs proof your ancestor was naturalized. This free list may hold it
Canada invites provincial nominees to apply for permanent residence
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Express Entry
Canada publishes revised distribution of candidate scores within the Express Entry pool
Canada invites provincial nominees to apply for permanent residence
A long highway in Gros Morne, Newfoundand.
Canada unveils four-pronged approach to re-defining top picks for permanent residence through Express Entry
The Canadian Parliament on a sunny day.
Canada holds first permanent residence selections under revamped transportation category
Aircraft maintenance engineer wearing safety glasses and a high-visibility vest inspects the wing of a small airplane inside a hangar.
Link copied to clipboard