Temporary Foreign Workers and Regional Labour Market Disparities in Canada
46 Pages Posted: 19 Sep 2010
Date Written: June 2009
Temporary foreign worker programmes are seen as short-term solutions to shortages of regional or occupational labour. During the past decade, Canada experienced unprecedented economic growth and some regions appeared to suffer from acute labour shortages. The country’s temporary foreign worker programme was thus expanded to include all types of low-skill workers and access by employer was made easier. During the same period, wide regional discrepancies in unemployment rates persisted as the adjustment mechanism for convergence in regional labour markets did not seem to function. This paper shows that some of the persistence is due to increased availability of temporary foreign workers suggesting they are not priced correctly to avoid adverse effects on the Canadian labour market.
Keywords: Temporary foreign workers, regional unemployment, immigration policy
JEL Classification: F22, R23, J61, J64, J68
Suggested Citation: Suggested Citation