Canada’s Temporary Foreign Worker Program (TFWP) was established to help employers address short-term labor shortages by hiring foreign nationals to fill jobs when qualified Canadians are not available. The program spans various sectors—from agriculture and hospitality to healthcare and technology. Workers under the TFWP receive temporary work permits, allowing them to contribute to Canada’s economy for a limited period.
Key Takeaways
What Is Canada’s Temporary Foreign Worker Program (TFWP)?
While the TFWP aims to complement the Canadian labor force rather than replace it, critics argue that its broad application may have unintended consequences, especially for younger Canadian workers struggling to find employment. The program’s flexibility in allowing foreign labor to enter the workforce quickly makes it a go-to solution for employers facing staffing challenges, but has also raised concerns over its long-term impact on the domestic labor market.
Why Are Critics Calling for the Program’s End?
In May 2025, Conservative MP Jamil Jivani sparked a heated debate by calling for an end to the TFWP, excluding the Seasonal Agricultural Worker Program, which is seen as essential for Canada’s food production. Jivani’s petition, which has gathered widespread support, claims that the TFWP encourages unsustainable immigration, drives down wages, and displaces Canadian workers, particularly youth, who are already struggling to secure jobs.
Critics contend that instead of addressing the root causes of labor shortages, the program provides employers with a cheaper alternative to hiring and training Canadian workers. This, they argue, suppresses wage growth and discourages investments in workforce development and automation that could otherwise benefit the Canadian economy in the long term.
Moreover, there’s growing concern that the TFWP disproportionately affects younger Canadians entering the job market. Young workers, often with less experience, face stiff competition not only from their peers but also from foreign workers willing to accept lower wages or less favorable conditions, further complicating their path to stable employment.
Also Read: Should You Apply for Canada Permanent Residency in 2025?
How High Is Youth Unemployment in Canada Today?
Youth unemployment in Canada has been a persistent challenge, and recent figures have heightened alarm. In April 2025, the youth unemployment rate reached 14%, significantly above the national average of around 5% for the general population. This high rate reflects a combination of factors, including automation, changing industry demands, and economic uncertainty following global disruptions.
For many young Canadians, securing meaningful, long-term employment has become increasingly difficult. Entry-level jobs, internships, and apprenticeships—which serve as crucial stepping stones—are in short supply. The presence of temporary foreign workers willing to fill these roles at lower costs only exacerbates the issue, according to critics.
Youth unemployment not only impacts the economic prospects of individuals but also has broader societal effects. Prolonged joblessness can lead to skill erosion, reduced lifetime earnings, and mental health challenges. It also affects Canada’s future productivity and competitiveness as these young workers represent the next generation of talent.
The Impact of TFWP on Canadian Workers and Wages
The TFWP’s impact on Canadian workers is a complex and debated topic. On one hand, supporters emphasize that the program fills critical gaps where domestic labor is scarce or unavailable, thereby supporting industries vital to the economy. Employers in sectors such as agriculture, hospitality, and healthcare argue that without access to temporary foreign workers, their operations would face severe disruptions.
On the other hand, several studies and anecdotal reports suggest that the program can contribute to wage suppression and job displacement, particularly in lower-skilled occupations. Employers might favor temporary foreign workers who accept lower pay or less favorable working conditions, creating downward pressure on wages across these sectors.
For Canadian youth and other vulnerable groups, this dynamic can mean fewer job openings and limited wage growth. The presence of foreign workers willing to work temporarily may disincentivize employers from investing in the recruitment and development of young Canadian talent, creating structural barriers to employment.
Government Response and Possible Reforms
The federal government, represented by Employment Minister Patty Hajdu, has acknowledged the concerns raised by MP Jivani and others but maintains that the TFWP remains a necessary tool for managing Canada’s labor market needs. Minister Hajdu has indicated that while reform is needed to better balance the interests of Canadian workers and employers, outright termination of the program is neither practical nor desirable.
Possible reforms being considered include stricter labor market assessments before employers can hire foreign workers, enhanced protections for temporary foreign workers to prevent exploitation, and incentives for employers to prioritize Canadian workers in recruitment efforts. There is also talk of improving data transparency and oversight to ensure the program’s effectiveness and fairness.
Critically, the government recognizes the importance of sectors like agriculture and tourism, which rely heavily on temporary foreign labor, and has excluded the Seasonal Agricultural Worker Program from calls for abolition.
The ongoing debate reflects the difficult balancing act Canada faces—meeting labor demands to sustain economic growth while ensuring that Canadian workers, especially youth, are not left behind in the job market.
Conclusion
The discussion around ending Canada’s Temporary Foreign Worker Program revolves around concerns about youth unemployment, wage suppression, and job displacement. While the program addresses immediate labor shortages, critics call for reform to better protect Canadian workers and support youth employment. The government appears open to change but cautious about removing a program vital to many industries. As Canada navigates this challenge, the coming months will be crucial in shaping a labor market that balances economic needs with the well-being of its domestic workforce.
By
