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How Canada can improve the Temporary Foreign Worker Program || Wave Visas

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The Temporary Foreign Worker Program is one of the strongest methods that Canada has to address the immediate shortage of labour—but there is room for improvement.

A recent study from the Canadian Federation of Independent Business titled “Labour shortages are back with a vengeance” found that 54% of businesses could not find all the staff they need, with only 42% reporting being able to fully staff their operations.


Some small businesses have made changes to increase their competitiveness in the job market, such as increasing wages, but only 22% of those who increased wages found it effective. Almost two-thirds (63%) of businesses reported that a lack of candidates with the necessary skills/experience was the main bottleneck to their labour problems. While jobs may be available, employers still need to have employees with the skills to meet their business’ needs.

Lack of candidates, qualification mismatches and labour market disruptions continue to drive labour shortages.

Small businesses were already experiencing a significant labour shortage at the beginning of 2020, and the pandemic has only exacerbated the situation. Industries that were locked down for prolonged periods, like hospitality, have seen a mass exodus as workers upskilled or switched to other jobs or sectors.

Social services and hospitality saw a respective, 37% and 48% of their employee’s switching fields. While virtually all sectors have been facing major demographic upheavals—nearly 24% of small businesses reported that employees switched industries due to the pandemic—the major concern now is that there are currently not enough new workers coming in to replace those who are retiring or switching fields.

COVID-19 lockdowns and restrictions hit small businesses hard. Now that most of the country is opening back up, we need governments to address labour shortages quickly to ensure a strong recovery.

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