I guess I'll go first.
Immigration has been a significant contributor to Canada's labour force. Recent census data show that from 2001 to 2006, Canada's labour force grew by 1.3 million, of which roughly 40% is directly attributable to immigration. Seasonal and temporary immigration programs have been part of Canada's overall immigration plan since the late 1960s, but have grown significantly in recent years. Under the temporary foreign worker program, workers help fill skill and labour shortages in Canada and contribute to overall economic growth.
Large levels of immigration and shifting policies have led to a variety of concerns. Most often mentioned is the dubious claim that increased immigration has taken away jobs from native-born Canadians. Further, immigration policies have sometimes been emphasized for the wrong reasons. It is not true, for example, that a numerous and more youthful distribution of immigrants could easily cure the challenges of an aging population.
Yet, tight labour markets have begun to pose a strain on the growth of certain sectors and regions. Canada's aging workforce, a rapidly expanding economy, and technological change have resulted in a shortage of qualified employees, predominantly in western Canada. Job vacancy rates have risen, forcing both private and public sectors to look for immediate relief, driving employers to tap into the pool of temporary foreign workers. Meanwhile, the federal government may have a useful role in helping employers and potential employees match up. The temporary foreign worker program helps fit the ambition of foreign workers with Canada's domestic needs.
That said, we should not look to the temporary foreign worker program to deliver more than it can. Canada has a number of policy tools that can do more to increase the performance of our labour market than can a dramatically expanded temporary foreign worker program. Similarly, improvements in other areas of Canada's immigration program may produce larger and more lasting benefits.
For the purposes of this brief, the temporary foreign worker program is seen to potentially target three distinct shortages in our labour force. The first is to meet the need for work that few domestic residents will do, such as seasonal farm workers and live-in caregivers. The second is to meet the need for skilled employees who are not present in our labour force, such as specialized nuclear technicians or professionals with precise and extremely rare skills. The third looks to fill jobs that workers in our labour force may undertake but who face barriers in moving to meet employment demand.
Ultimately, the temporary foreign worker program serves as a good tool for the first two conditions, but we should resist extending the program to address shortages when they are symptomatic of other problems in our labour market.
Markets generate wage and price signals, and often policy distorts them. As an example, high global energy prices highlight the demand for western Canada's resources, causing investment to rise, which in turn places further demands for a large flow of capital and labour. This drives wages up and sends other price signals through the market.
Notwithstanding a low national unemployment rate, unemployment is high in certain geographic pockets. As of March 2008, unemployment ranged from a low of 2.9% in central Alberta to 19.1% in southern Newfoundland and Labrador. These statistics suggest rigidity in our labour market.