Temporary foreign workers increasingly employed in low-paying jobs
Only 3 sectors accounted for more 40% of all temporary foreign workers in recent years, Statistics Canada says
The employment of temporary foreign workers in Canada has become increasingly concentrated in sectors that offer low-paying jobs, according to a study in a series of economic and social reports released by Statistics Canada this month.
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The study said only three sectors — accommodation and food services; retail trade; and administrative and support, waste management and remediation services — accounted for more 40 per cent of all temporary foreign workers in recent years.
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That proportion has risen from 33 per cent in 2010 to 45 per cent in 2019 and 43 per cent in 2020, when COVID-19 pandemic restrictions affected work in accommodation and food services.
“Different industrial sectors depend on temporary foreign workers to varying degrees because of unique levels of labour shortages and specific skill requirements,” authors Yuqian Lu and Feng Hou wrote in the Statistics Canada report.
The report said the increased concentration in those three low-paying sectors is due to the large expansion in the number of work and study permit holders, who are increasingly taking on jobs in those sectors.
The number of permit holders under the temporary foreign worker program remained relatively stable from 2010 to 2019 while those working in the three sectors dropped from 23 per cent to 14 per cent.
By comparison, those with work permits under the international mobility program have nearly tripled in that time frame. The proportion of those working in the three sectors also slightly increased from 42 per cent to 45 per cent.
Meanwhile, the number of study permit holders who are reporting employment income has risen nine-fold, and the share working in the three sectors rose from 12 per cent to 65 per cent.
Aside from the three sectors, temporary foreign workers were also employed in agriculture, forestry, fishing and hunting; manufacturing; professional, scientific and technical services; and educational services.
These industries accounted for approximately 31 per cent of that total workforce in 2010, before declining to 28 per cent in 2020.
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