By Anna Mehler Paperny

TORONTO (Reuters). Canada increasingly relies on temporary workers to fill its labor force, according to a Reuters analysis. However, this makes workers more vulnerable and does not provide stability or wage growth for businesses, warns workers advocates and economists.

The temporary resident comes to Canada under a limited visa. Some of these are linked to certain employers. After that, they will be expected to return their country of origin. Although there are several ways to become permanent residents and many people are keen to do so there are significant obstacles to overcome.

An analyst says that offering temporary visas can be a simple solution to tight employment markets. It may even allow politicians avoid any political fallout from large amounts of new permanent residents.

This trend could lead to lower labor standards. Employers might boost their wages in order to attract employees. According to economists, permanent residents have a better chance of obtaining better working conditions.

Armine Yalnizyan is an economist and Atkinson Fellow for the Future of Workers. She said that wage suppression can decrease the purchasing power of the population, which could lead to a reduction in economic growth.

Mikal Skuterud from the University of Waterloo argues that it is more sensible to place emphasis on immigration of highly-skilled individuals to encourage economic equality. They will put downward pressure upon the highest wages while lower-paid employers raise wages in order to attract workers.

Temporary residents, who are often from Asia and Latin America, say that because of their uncertain immigration status they are vulnerable to exploitation.

Canada’s immigration minister said that the programs were an “essential tool”, but he thinks there are more avenues to permanent residency.

According to Reuters analysis, Canada’s temporary population has grown more than Canada’s annual new permanent residents.

The number of temporary residents in 2020 was more than triple that of permanent residents. Canada’s permanent resident record for last year had over twice the temporary residents.

These international students have contributed to this growth, which has more than doubled over a decade. In Canada, however, there has been a nearly quintupling of the number who have postgraduate work permits.

Although many international students may be able to work subject to certain limitations, Canada’s immigration agency said they don’t know how many.

PATH TO PERMANENT RESIDENCY

Kathleen Sullivan CEO, Food and Beverage Canada said her members who are short of labor are trying to find temporary foreign workers.

She said that they prefer stability.

“If I have a permanent job, I want a permanent employee – I’m investing in training, I’m investing in them,” she said.

Canada’s immigration system places high-skilled workers first, while the labor market requires people with less experience. Canada’s job vacancy rate in the fourth quarter of 2021 was 5.3%, and was highest in accommodation and food services, at 10.8%. Statistics Canada said that the average hourly pay in this sector was C$15.50 ($12.37) last year.

Louis Bontorin said temporary workers from abroad saved his family’s bakery. He wants to make their work permanent. He estimates that only five of the 60 workers they have brought in temporary are here to stay.

According to him, it could make a significant difference for someone to be granted permanent residency upon their arrival. It really alters the way they kind of plan with family,” he stated.

Canada had announced last year a plan to allow 90,000 temporary workers to become permanent residents. Canada has so far granted 23,880 permanent residency. However, the immigration department indicated that there are more applicants.

Canada’s Immigration, Refugees and Citizenship Minister Sean Fraser said in a January interview it may be time to establish a path to permanent residency.

The ability to create temporary programs that can be used as a solution for persistent or permanent labor shortages is possible with certain programs. There is better way to do it.