BC Businesses Fear Staff Shortage as Foreign Worker Permits Decrease

A noticeable decrease in the number of authorized permits for foreign workers is leading to a sense of unease and uncertainty for businesses and migrant workers in British Columbia. Natives of the region are grappling with the effects of these recent changes. Migrant workers are in a state of distress as their work permits come closer to expiration, while rural business enterprises in British Columbia are fearful of an impending staff shortage crisis.

Reported data indicates that the population of foreign labor within the province is dwindling. Observers suggest that these changes are a result of attempts by the federal government to rectify past oversights that led to unmanageable increases in immigration in 2020. In response to this, fresh limitations on immigration are being implemented, which are anticipated to cut new study permits by 35% and reduce the number of temporary foreign personnel across the nation by 20,000.

Jim Stanford, an esteemed economist, argues that while permanent immigration presents opportunities for skilled workers to enter Canada, a massive influx of temporary workers simply enables businesses to continue capitalizing on them. Stanford, as the head of the Centre for Future Work, is among several voices asserting that such short-term work schemes enabled firms to employ workers at minimal wages, all while negating their fair access to labor and legal protections.

Programs such as the Temporary Foreign Worker Program have seen a reduction in the number of permits approved by the federal government. According to a representative from Employment and Social Development Canada, the program was primarily intended as a temporary solution for businesses to address immediate gaps in the labor market. The program was not envisioned as a ceaseless substitute for the recruitment of Canadian employees. The representative reiterated that it is the duty of employers to produce job opportunities that appeal to Canadians.

Over the past ten years, several foreign workers have exploited the program to gain entrance into Canada and thereafter seek permanent residence. Concurrently, employers increasingly depend upon foreign labor to cover job vacancies, particularly in sectors such as hospitality, food service, and agriculture.

In a significant shift in policy, the federal government has elected to scale back the increase in new work permits for jobs located in British Columbia. This change, announced in November of last year, is marked by new action plans to decrease Canada’s dependence on foreign labor and overseas students. The strategy proposed a reduction in the total number of permanent residences and set new goals for the population of temporary residents in the country.

The federal government is optimistic that these changes will curtail the percentage of temporary residents from approximately 6.5% of Canada’s overall population to 5% by the year 2027. Speaking on behalf of Immigration, Refugees and Citizenship Canada (IRCC), a representative confirmed that the scale-down would ensure jobs are secured for Canadian residents and citizens. Additionally, it would enable Canada to provide appropriate support to incoming residents.

The federal government allows enterprises to employ migrant workers who are not students, primarily through the Temporary Foreign Worker Program and the International Mobility Program. The IRCC systematically monitors the influx of fresh permits initiated under these programs each quarter.

Despite these well-intentioned plans, some communities in British Columbia are feeling the effects more acutely than others. In regions like Prince Rupert, John Farrell, the director of business development at Community Futures Pacific Northwest, emphasized that the new restrictions coincide with an acute staffing crisis within rural B.C. communities. Migrant workers and international students in the area are finding it increasingly difficult to extend their work permits that are nearing expiration.

As a consequence, workers are leaving the city with no obvious replacements in sight, according to Farrell. These new restrictions on temporary workers have heavily impacted local eateries, coffee shops, and hotels. As the owner of a brewery and restaurant, Farrell witnessed that impact firsthand, losing a chef who left the country due to the new regulations reducing his likelihood of obtaining permanent residency.

The significant personnel loss continued with the executive chef also deciding to depart after failing to extend his work permit. Farrell expressed his disappointment, saying, ‘We made a promise to them offering the possibility of permanent residency. They came here expecting a new life, and now, seeing the promise unfulfilled, they are leaving.’

In response to this situation, Farrell is urging the federal government to consider granting special designations to Prince Rupert. This would allow employers to secure labour market impact assessments (LMIAs) and continue to hire foreign labor. Currently, Prince Rupert is exempt from policies making it more challenging to secure foreign workers.

However, dissenters like Byron Cruz from the Migrant Rights Network are criticizing the new restrictions. Cruz argues that these limits are ill-timed, considering Canada is grappling with shortages in healthcare and education staffing, asking ‘Where are the local applications for these positions? Who will work to meet these targets?’

As the chances of permit renewals get slimmer, Cruz suggests that some migrant workers feel neglected. Instead of addressing prevailing issues like housing and public service shortages, he contends, these new restrictions are diminishing tax revenue and increasing vulnerabilities among workers. Cruz alleges that previous promises of a pathway to permanent residency are not being fulfilled, pushing some workers to remain silently, albeit undocumented, in the country.

Despite the federal government’s consistent assertion that the program was initially designed to attract temporary labor, Cruz signals that many workers arrived in Canada under the belief that the program would lead to permanent residency. He concludes that the new regulations have abruptly severed this route for thousands of workers, leaving them disillusioned and feeling discarded.