Concerning the temporary foreign worker program, the way it's supposed to work is that a firm advertises a job. If they advertise a job at the market wage rate and they're unsuccessful, they can ask the federal government to bring in a temporary foreign worker. This seems innocuous, but the reality is that job searches fail all the time, and this could lead to a situation whereby.... There's an incredible supply, sadly, of lower-wage workers around the world who are willing to come, so one could think of it as flattening the labour supply curve, effectively, through that.
The other thing that could happen is that firms could anticipate this, because temporary foreign workers tend to be older than teenage workers in Canada, and they care a lot more about the job. If they lose the job, they probably have to go back to their home country—whereas an immigrant, for example, a permanent resident, can move to another job in Canada. There's a power imbalance.
Our research suggests that this type of program is likely to lead to lower wage offers by firms.