As of March 2008, unemployment ranged from a low of 2.9% in central Alberta to 19.1% in southern Newfoundland and Labrador, suggesting rigidity in our labour market. Jobs are available in some areas, but only a trickle of unemployed workers move in response. Notably, labour market rigidity is confined mostly to central and eastern regions.
Although the temporary foreign worker program acts as a stopgap measure for labour needs, some of the forces behind the growing use of foreign workers are prime examples of an interprovincial mobility problem. The need to meet short-term labour demand is a concern, for the temporary foreign worker program cannot be comprehensive if larger underlying problems go unaddressed.
Although meeting the immediate concerns of business is important, foreign workers are not the only policy route. Some of the objectives of the temporary foreign worker program could be achieved by policies that encourage a greater level of labour mobility. In this vein, one would be to modernize the employment insurance program.
The role of temporary foreign workers in meeting acute and persistent labour market shortages should not distract attention from long-term policy goals. For example, does increasing the level of temporary foreign workers harm the existing immigration program by filling jobs that could be more beneficially filled by new permanent immigrants? If so, how large is the trade-off? Finally, to what extent do the goals of the two programs overlap?
Where job shortages appear to be more permanent, the temporary foreign worker program should identify areas for a streamlined application process. This is true for the seasonal agricultural worker program and the live-in caregiver program, which address jobs for which there is no willing domestic labour force, nor will there be in the medium term.
The same should apply to labour shortages in areas in which Canada lacks specific and ongoing domestic expertise, areas where shifting economic fundamentals would not likely impact the flow into these positions. Specifying areas where more permanent labour shortages exist would expedite judgments about whether foreign workers are needed in regions or sectors. Streamlining applications for permanent areas of concern would be beneficial to businesses and free resources for use in more ambiguous cases.
The expansion of the temporary foreign worker program should not divert resources or attention from measures that would speed up and facilitate the permanent immigration of foreign students in Canada. Many of our visiting students have much to offer and are eager to take up residence. A relatively untapped source for skilled workers is in our universities.
Further, our system of colleges could look to expand access to foreign students. At present, it's rare that students come to Canada to study trades. However, our post-secondary education system could serve a much greater role to facilitate our immigration needs.
Thank you.