The announced two-year cap on foreign student visas and changes to work permits for spouses could be dangerous for small and medium-sized enterprises (SMEs) that are already struggling with staff shortages.
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This is the conclusion reached by the Canadian Federation of Independent Business (CFIB).
“We understand why the government wants to introduce limits, but they need to proceed cautiously and think about the impact they will have on the wider economy. We need to consider all factors, especially when we know that labor shortages have resulted in a deficit of more than $38 billion for our SMEs in 2022,” Christina Santini, director of national affairs at CFIB, said in a press release.
In late January, Minister Marc Miller announced an immediate two-year cap on international student visas, as well as changes to work permits for spouses and graduate students.
In addition, the CFIB also fears that public institutions will have an advantage over private universities since the distribution of permits between colleges and universities will be a provincial responsibility.
The federal government has also indicated that it is reviewing its Temporary Foreign Worker Program (TFWP).
A 2021 report by CFIB found that 16% of SMEs used the temporary foreign worker program to solve their labor problems, with a success rate of 52%. This success rate is significantly higher than that of a salary increase (31%) and more flexible working hours (38%).
“SMEs are already facing several challenges due to inflation. Now is not the time to exacerbate labor shortages by making hiring migrant workers more complex, costly and difficult,” added Jasmin Guénette, Vice President of National Affairs at CFIB.