Small businesses warn new foreign worker restrictions risk deepening labour shortages – Mortgage Professional America

The Role of the Temporary Foreign Worker Program in Advancing Sustainable Development Goals

A report from the Canadian Federation of Independent Business (CFIB) highlights the critical role of the Temporary Foreign Worker Program (TFWP) in supporting Canada’s economic framework and advancing key United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities), and SDG 11 (Sustainable Cities and Communities).

Contribution to SDG 8: Decent Work and Economic Growth

The TFWP is shown to be a vital mechanism for promoting sustained, inclusive, and sustainable economic growth for Small and Medium-sized Enterprises (SMEs). The program directly supports business viability and the retention of domestic jobs, which are central tenets of SDG 8.

• Employment Stability: 52% of SMEs utilizing the program reported that TFWs enabled them to maintain employment for their Canadian staff.
• Economic Productivity: 76% of these businesses stated that TFWs were essential in helping them meet customer demand, thereby sustaining economic activity.

Addressing SDG 10: Reduced Inequalities

The findings challenge assertions that the program exacerbates inequality. Evidence suggests the TFWP promotes wage equity and provides a clear pathway for migrants to achieve economic integration, directly contributing to the goals of SDG 10.

1. Wage Equity: The vast majority of TFWs are compensated at the same rate as their Canadian counterparts, with only 3.5% earning less. An evaluation by Employment and Social Development Canada (ESDC) found “no evidence pointing to a risk for job displacement or wage suppression at the national level.”
2. Pathway to Integration: The program serves as a significant channel for long-term immigration. Nearly half of all new economic immigrants in 2022 were former TFWs, and 94% demonstrated strong community ties by remaining in their province one year after gaining permanent residency.

Impact on SDG 11: Sustainable Cities and Communities

The report indicates that the TFWP’s operational structure mitigates potential strains on urban housing markets, aligning with the objectives of SDG 11 to make human settlements inclusive, safe, resilient, and sustainable.

• A large proportion of TFWs are situated in rural areas, which do not experience the same housing pressures as urban centers.
• Many TFWs reside in employer-provided accommodations, further reducing their impact on local housing availability.

Policy Implications and Future Outlook for Economic Sustainability

The report cautions that recent modifications to the TFWP could jeopardize the growth and viability of small businesses, potentially hindering progress toward SDG 8. The potential negative consequences for national productivity and economic expansion are significant.

• Productivity Risks: 62% of businesses that use the TFWP anticipate that their productivity will be negatively impacted by the changes.
• Growth Limitations: 50% of these businesses project they will have to scale back their growth plans.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Relevant Sustainable Development Goals (SDGs)

1. SDG 8: Decent Work and Economic Growth
   • The article directly addresses this goal by focusing on the role of the Temporary Foreign Worker Program (TFWP) in supporting the “growth and viability of small businesses.” It highlights how these workers help Small and Medium-sized Enterprises (SMEs) maintain productivity, meet customer demand, and continue employing Canadian citizens, all of which are central to economic growth and job creation.
2. SDG 10: Reduced Inequalities
   • This goal is relevant through the article’s discussion on wage parity and migration. It challenges the perception that Temporary Foreign Workers (TFWs) increase wage inequality by presenting data that “Most TFWs are paid the same as Canadians.” Furthermore, it touches on facilitating orderly migration by showing the TFWP as a significant pathway to permanent residency, thus helping to integrate migrants into the economy.
3. SDG 11: Sustainable Cities and Communities
   • The article connects to this goal by addressing the potential strain on housing resources. It mitigates these concerns by noting that “many TFWs live in employer-provided accommodations, particularly in rural areas,” which do not face the same housing pressures as urban centers. This relates to ensuring access to adequate housing, a key component of sustainable communities.

2. Specific SDG Targets Identified

1. Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises.
   • The article’s core argument is that the TFWP is a policy that supports SMEs. It states that without TFWs, half of the businesses surveyed “would have to scale back business growth plans,” directly linking the program to the growth and productivity of these enterprises.
2. Target 8.5: By 2030, achieve full and productive employment and decent work for all… and equal pay for work of equal value.
   • This target is addressed in the section on wage suppression. The article provides evidence that the principle of “equal pay for work of equal value” is largely being met, citing that “Most TFWs are paid the same as Canadians, with only 3.5% earning less.”
3. Target 10.7: Facilitate orderly, safe, regular and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies.
   • The article demonstrates that the TFWP functions as a “well-managed migration policy” by highlighting its role as a successful pathway to permanent status. The fact that “Nearly half of new economic immigrants in 2022 were former TFWs” supports this connection.
4. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services.
   • The article touches on this target by discussing the housing situation for TFWs. It implies that the provision of “employer-provided accommodations” is a measure that helps ensure TFWs have access to housing without negatively impacting the housing market in pressure-filled urban areas.

3. Indicators for Measuring Progress

1. For Target 8.5 (Equal Pay):
   • The article provides a direct indicator to measure wage parity: the percentage of TFWs earning less than their Canadian counterparts. The specific data point mentioned is that only 3.5% of TFWs earn less than Canadians.
2. For Target 10.7 (Orderly Migration):
   • The article implies several indicators for measuring the effectiveness of the TFWP as a migration policy:
     • Percentage of new economic immigrants who are former TFWs (stated as “Nearly half… in 2022”).
     • Retention rate of former TFWs in their province after gaining permanent residency (stated as “94% remained in their province a year after gaining permanent residency”).
3. For Target 8.3 (Support for SMEs):
   • The article provides several indicators reflecting the program’s impact on SMEs:
     • Percentage of SMEs using the program who said it enabled them to keep employing Canadians (52%).
     • Percentage of SMEs using the program who said it helped meet customer demand (76%).
     • Percentage of businesses using the TFWP that felt their productivity will be negatively impacted by changes (62%).
4. For Target 11.1 (Access to Housing):
   • While not providing a specific number, the article implies an indicator: the proportion of TFWs living in employer-provided accommodations. This is used to measure the program’s impact on housing markets.

Summary Table: SDGs, Targets, and Indicators

Source: mpamag.com