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The transformation of Canada's temporary foreign worker program

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  • O'Donnell, Ian
  • Skuterud, Mikal

Abstract

Despite repeated efforts to curtail its size, we show that Canada's Temporary Foreign Worker (TFW) Programs have undergone a transformation since 2000, in which TFWs now account for nearly three percent of total Canadian employment - a six-fold increase - and are increasingly skilled, employed on long-term permits, and likely to transition to permanent residency (PR). While TFW entries that are labour market tested appear to be meeting genuine labour shortages, 85 percent are exempt from labour market tests (LMTs) and the growth in LMT-exempt permits has exceeded the growth in TFWs who transition to PR status. We argue that the system requires greater transparency in identifying the locations and occupations of TFWs with LMT-exempt permits and in tracking their PR transition rates.

Suggested Citation

  • O'Donnell, Ian & Skuterud, Mikal, 2021. "The transformation of Canada's temporary foreign worker program," CLEF Working Paper Series 39, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    • Handle: RePEc:zbw:clefwp:39
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    References listed on IDEAS

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    1. Zong Jia Chen & Mikal Skuterud, 2018. "Relative Labour Market Performance of Former International Students: Evidence from the National Graduates Survey," Canadian Public Policy, University of Toronto Press, vol. 44(3), pages 207-225, September.
    2. Murat Demirci, 2020. "International students and labour market outcomes of US‐born workers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1495-1522, November.
    3. Abdurrahman Aydemir & George J. Borjas, 2007. "Cross-Country Variation in the Impact of International Migration: Canada, Mexico, and the United States," Journal of the European Economic Association, MIT Press, vol. 5(4), pages 663-708, June.
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