Evidence of meeting #14 for Human Resources, Skills and Social Development and the Status of Persons with Disabilities in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was immigration.

On the agenda

Members speaking

Before the committee

Bizzarro  Co-Coordinator, Mouvement autonome et solidaire des sans-emploi
Hussan  Executive Director, Migrant Workers Alliance for Change
Skuterud  Professor, Department of Economics, University of Waterloo, As an Individual

5:05 p.m.

Executive Director, Migrant Workers Alliance for Change

Syed Hussan

In terms of the youth employment and skills strategy, I think for us, we have to understand that international students, temporary foreign workers, migrant workers and immigrants are part of the Canadian labour market. Everyone who works in Canada is part of the labour market, so instead of pitting migrants against youth, we need a strategy that includes both. For migrants, that means permanent resident status.

Part of the problem is that people can be exploited more because they don't have equal immigration rights. We need a single-tier society where everyone has the same eligibility to leave bad jobs and the ability to stand up for their rights. That would be a major step forward.

I can send a fuller proposal in writing later.

Jessica Fancy-Landry Liberal South Shore—St. Margarets, NS

Thank you so much, Mr. Hussan.

With the remainder of my time, I'd like to give you the opportunity to expand on anything else you've heard throughout this testimony today.

5:10 p.m.

Executive Director, Migrant Workers Alliance for Change

Syed Hussan

Yes, of course.

I think the other thing is that Mr. Skuterud, for example, continues to bring up data, but causation is not caused by correlation. As I explained, 34% of international students were working in 2021, which is when this 20-hour work limit was removed. Higher rates of international students do not have a direct causation. Similarly, temporary foreign workers are working in agriculture and care. They're not working in new jobs.

The Chair Liberal Bobby Morrissey

Thank you, Mr. Hussan.

I allow everybody to go over the allotted time, but if that doesn't work, then we'll stop everybody at the allotted time.

Mrs. Gill, you have the floor for two and a half minutes.

Marilène Gill Bloc Côte-Nord—Kawawachikamach—Nitassinan, QC

Thank you, Mr. Chair.

I don't have much time, but I'd like to ask Mr. Bizzarro one last question.

It's about how, in the absence of reform, people slip through the cracks in the EI system. In particular, this affects the young people we are looking at as part of this study. They want to enter the labour market while completing their studies.

5:10 p.m.

Co-Coordinator, Mouvement autonome et solidaire des sans-emploi

Michaël Bizzarro

Thank you, Mrs. Gill.

We believe that the core purpose of EI is to function as a social safety net. Initially, the goal of the program was to offer protection to all Canadian citizens. Young men and women are part of that group, whether they're newcomers to the labour market, in school or working part time. We believe that they all need and have the right to access the EI program.

We should start with better access to the program. We believe that nobody should be excluded because they have just joined the labour market or are studying while working, especially since they contribute to it as well.

I think it's important to improve the—

Marilène Gill Bloc Côte-Nord—Kawawachikamach—Nitassinan, QC

I'm sorry to interrupt. I'd like to clarify my question.

I would like to know if there is a correlation, a direct connection, for some young people, with pursuing their education. I myself had to leave home and go to Montreal to study. I had to work to pay the rent. We don't want a student's education to be in jeopardy if something happens. The same goes for work, for employment.

I want to know whether, in your opinion, there is evidence that young people may have to interrupt their pursuits or be unable to get a job because of flaws in the EI system.

5:10 p.m.

Co-Coordinator, Mouvement autonome et solidaire des sans-emploi

Michaël Bizzarro

Yes, I understand your question now, Mrs. Gill.

Indeed, we think that programs like this one could help some young people continue their pursuits. If they have to choose between paying the rent and continuing their education, most students will unfortunately choose to go back to work full time to meet their basic needs.

We think it's important that they be able to continue their studies and become skilled workers for the labour market.

Marilène Gill Bloc Côte-Nord—Kawawachikamach—Nitassinan, QC

Thank you very much.

The Chair Liberal Bobby Morrissey

Thank you, Mrs. Gill.

Mr. Majumdar, you have the floor for five minutes.

5:10 p.m.

Conservative

Shuv Majumdar Conservative Calgary Heritage, AB

Thank you very much.

I'd love to direct my questions to Professor Skuterud.

Thank you so much for your testimony, sir. As a first-time caller and long-time fan, I've really appreciated having a chance to see you here.

This is my first question. Based on your research and your work, should immigration policy be informed by economic outcomes?

5:10 p.m.

Professor, Department of Economics, University of Waterloo, As an Individual

Mikal Skuterud

Could you rephrase the question? I don't know what economic outcomes means.

5:10 p.m.

Conservative

Shuv Majumdar Conservative Calgary Heritage, AB

Should immigration policy factor in economic outcomes? The GDP per country—

5:10 p.m.

Professor, Department of Economics, University of Waterloo, As an Individual

Mikal Skuterud

Again, I'm not trying to be difficult. I don't know what the question is.

5:10 p.m.

Conservative

Shuv Majumdar Conservative Calgary Heritage, AB

It's labour market needs and the way in which our economy functions in filling in gaps.

5:10 p.m.

Professor, Department of Economics, University of Waterloo, As an Individual

Mikal Skuterud

Yes, I guess I'll try to answer. I don't know how much time I have. It's hard to answer these questions. I don't want to get cut off halfway through.

The crux of the problem is that Canadian immigration policy on the economic front is trying to do too much. There's a principle in economics called the Tinbergen principle. If you have more policy objectives than policy instruments, you're going to make a mess of the whole thing. That's exactly what has happened on the immigration front.

We're trying to do everything. We're trying to populate areas where Canadians—young people—don't want to live and that have been bleeding young people for decades. We're trying to meet low-skill labour market needs, and we're trying to drive economic growth. These objectives are not well aligned, and you have a kind of single policy lever, so when you try to push on one objective, you make the other one worse off.

We've created a real mess.

5:15 p.m.

Conservative

Shuv Majumdar Conservative Calgary Heritage, AB

Thank you. I appreciate your response. In the interest of time, I'm going to the second question.

Could you discuss the myth of labour shortage and what labour oversupply does to wage growth, particularly for young people?

5:15 p.m.

Professor, Department of Economics, University of Waterloo, As an Individual

Mikal Skuterud

I've encouraged the 700 economics 101 students I taught today to watch this.

We teach what a shortage is in a market. It's when there's more demand than supply at the given price. When there are labour shortages, it means quite simply by definition that the price is too low. If there are labour shortages, it means wages are too low.

The way to deal with them is to let a free market do what it's good at—reallocate. Competition for scarce workers will drive the wages up, lead to new investments and productivity. Increases in wages will lower demand and increase supply. It's that simple. That's what happens.

However, when you get government interventions, they can make first best outcomes worse, and that is what we've seen in recent years.

5:15 p.m.

Conservative

Shuv Majumdar Conservative Calgary Heritage, AB

Exactly. Free markets, equality of opportunity, merit....

In that context, sir, what do you think the impact of DEI policies has been on young workers?

5:15 p.m.

Professor, Department of Economics, University of Waterloo, As an Individual

Mikal Skuterud

It depends on who you are, I suppose.

I know people who have benefited from those programs, and I also know people who have probably been harmed by those programs. They have distributional effects.

5:15 p.m.

Conservative

Shuv Majumdar Conservative Calgary Heritage, AB

In what sense do you see the downside of pursuing those types of government interventions that get in the way of equality of opportunity and focus more instead on equality of outcomes?

5:15 p.m.

Professor, Department of Economics, University of Waterloo, As an Individual

Mikal Skuterud

At the University of Waterloo, there are positions, job vacancies, that very clearly exclude eligibility of certain groups. Those people just aren't eligible for the jobs.

If that's a job that I otherwise would have competed for and I'm no longer eligible because there's a DEI program, then clearly I'll be worse off.

5:15 p.m.

Conservative

Shuv Majumdar Conservative Calgary Heritage, AB

I'm sorry to hear that, sir.

I think it undermines human dignity and professional accomplishment when those types of subjective pressures are placed on the marketplace for any profession.

Thank you for your courage in saying that.

I have about a minute left with you, so I'll ask you this question. You've said that permanent immigration isn't about meeting today's labour needs, but rather about long-term productivity. Do you believe that—

The Chair Liberal Bobby Morrissey

Perhaps we could pause for a minute, Mr. Majumdar.

The bells are ringing. I need unanimous consent to continue. We would have one more after you.

Do we have unanimous consent?

5:15 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

We have to head to the chamber.