Immigration restrictions may exacerbate lost revenue from labour shortages
Many of Canada’s small businesses are already struggling with labour shortages and this may be worsened by changes to the federal government’s immigration policy.
The Canadian Federation of Independent Business says that the immediate two-year cap on international student visas and the restriction on work permits for spouses and post-grads could be damaging.
"This is not the time to act hastily. All factors need to be considered, especially when labour shortages cost small businesses over $38 billion in lost revenue opportunities," said Jasmin Guenette, Vice-President of National Affairs at CFIB. The organization wants open and public consultations on the proposed changes and any future ones.
CFIB president and CEO Dan Kelly added that small businesses in smaller and rural communities will be more impacted and, while he recognized the need for immigration limits, he called on the government to consider the risk to the economy of the recently announced changes.
He also expressed concern that provinces may prioritize public institutions at the expense of private colleges.
"Many smaller, private colleges are better able to offer the type of training most needed by employers compared to larger, publicly funded institutions. We need to be careful not to paint everyone with the same brush as many private trainers are instrumental in training professionals in skilled trades where Canada is experiencing a labour crunch," he said.
TFW program
The changes were announced late last month and there could also be changes to the temporary foreign worker program which would reduce the number of hours that foreign students are allowed to work.
“This would reverse some of the helpful changes that the government made a few years ago," Kelly said. "Let's not forget that employers are required to pay TFWs a wage set by government and must help with housing for TFWs in lower-skilled occupational categories."
