CFIB highlights challenges from new work permit restrictions
The Canadian Federation of Independent Business (CFIB) has voiced concerns over recent federal government modifications to policies affecting foreign labor, specifically international student visas and work permits for accompanying spouses.
Announced abruptly in late January by Minister Marc Miller, these include a two-year cap on international student visas, adjustments to the policies for accompanying spouses and post-graduate work permits, and a review of the Temporary Foreign Worker (TFW) program.
Such changes, according to the CFIB, might exacerbate staffing challenges for small businesses already struggling to maintain growth and productivity.
“The recent changes will impact many small businesses who are grappling with labor shortages, particularly those in smaller and rural communities,” stated CFIB president Dan Kelly in a press release announced on Newswire Canada.
He acknowledged the government's reasoning for imposing limits but emphasized the importance of cautious action to avoid negative repercussions on the economy.
A significant concern for the CFIB is the distribution of permits among universities and colleges by provinces, fearing that public institutions might be prioritized over private colleges.
Kelly highlighted the crucial role of smaller, private colleges in providing training for skilled trades, sectors where Canada is facing a notable labor deficit.
“Many smaller, private colleges are better able to offer the type of training most needed by employers compared to larger, publicly funded institutions,” Kelly explained, stressing the importance of not overlooking these private educators.
CFIB's 2021 research underscores the TFW program's effectiveness in mitigating labor shortages, with a 52 percent success rate in addressing labor needs among the 16 percent of small businesses that utilized the program.
This success rate significantly outperforms other strategies like raising wages (31 percent) or increasing work hour flexibility (38 percent).
Further potential changes mentioned by Minister Miller, such as adjustments to the hours students can work and an overhaul of the TFW program, have also raised concerns within the CFIB.
“This would reverse some of the helpful changes that the government made a few years ago,” Kelly remarked. He also noted that employers are obliged to pay TFWs a government-set wage and, for lower-skilled occupational categories, assist with housing.
Considering these developments, the CFIB recommends that the Ottawa government engage in open and public consultations on the recent announcements and any future potential changes.
“This is not the time to act hastily,” said Jasmin Guenette, vice-president of National Affairs at CFIB. He pointed out the critical need for a comprehensive evaluation of all factors, especially considering the over $38bn in lost revenue opportunities attributed to labor shortages faced by small businesses.
