1708966293 More foreign temporary workers could have a negative impact on

More foreign temporary workers could “have a negative impact on the wages of local workers”

No more “foreign temporary workers”. [que les 59 820 actuels] could have a negative impact on the wages of local workers,” says a report released today by the Institut du Québec (IDQ).

“We have to be vigilant. We are not saying that this will reduce the wages of Quebec workers, but we need to be vigilant on this issue,” Daye Diallo, co-author of the report and senior economist at the Institut du Québec (IDQ), told the Journal.

“If there is less competition in certain professions, wage inflation will be lower if we hire workers from abroad,” explains Director General Emna Braham.

More foreign temporary workers could have a negative impact on

Emna Braham, Director General of the Institut du Québec (IDQ), welcomes the contribution of TETs, but believes that our SMEs also need to focus on innovation to drive their growth. Photo provided by the Institut du Québec

“Significantly increasing the immigration of less skilled professionals into an industry also risks slowing down certain automation transformations,” she adds.

The IDQ's number 1 had already raised a red flag on this topic at the beginning of the year: Several companies did not invest in automation when interest rates were low and are now faced with robotization at high prices.

Yet we are not yet seeing a reduction in wages from below, as they continue to rise rapidly due to acute shortages in many key sectors of Quebec's economy.

1708966284 540 More foreign temporary workers could have a negative impact on

“Provided by IDQ”

Emna Braham also reminds that there are barely 59,820 workers in the Temporary Foreign Worker Program (PTET), while there are around 107,615 in the International Mobility Program (PMI).

Eight times more

However, in recent years, the number of workers in the Temporary Foreign Worker Program (TFWP) has increased faster than other categories.

“It is eight times higher than in 2015. As in the past, in 2023, around a quarter (23%) of the permits issued by the PTET were awarded to workers in the agricultural sector,” the report said.

1708966286 608 More foreign temporary workers could have a negative impact on

“Provided by IDQ”

In mid-February, Le Journal reported that an increasing number of foreign welders were coming to our factories as reinforcements. Their number has increased by 28% within a year.

At Desjardins, the number of such workers increased by 14% to 1,670 between 2021 and 2023, particularly to fill IT positions. Around 154 chefs, head chefs and sous chefs have been working in the kitchen at La Cage since 2021, with a good 166 still expected.

Construction delay

In key industries such as construction, certain occupations continue to be in short supply and labor shortages are hitting many construction sites hard.

Four months ago, Labor Minister Jean Boulet said in an interview with the Journal that he wanted more foreign temporary workers in the construction industry.

1708966287 52 More foreign temporary workers could have a negative impact on

Interview with Minister Jean Boulet on the modernization of construction law in Quebec, Thursday September 28, 2023. STEVENS LEBLANC/JOURNAL DE QUEBEC/AGENCE QMI) Stevens LeBlanc/JOURNAL DE QUEBEC

The Institut du Québec (IDQ) also points out in its report that Quebec still has some way to go to catch up with Ontario in this sensitive economic sector.

According to the IDQ, this type of workforce is grossly underutilized in construction.

Although temporary foreign workers made up 3% of Quebec's workforce last year, they were three times less numerous in construction than in Ontario, the organization notes.

“The recognition of skills and the structure of the industry, which consists of smaller players, make it difficult for them to find international talent,” concludes Emna Braham from IDQ.

1708966289 371 More foreign temporary workers could have a negative impact on

More than 1,566 Quebec companies asked the Ministry of Immigration, Francisization and Integration (MIFI) for assistance in recruiting abroad last year.

Can you share information about this story?

Write to us or call us directly at 1 800-63SCOOP.