Labor Economy and Temporary Foreign Workers in Canada

Mikal Skuterud’s Perspective on Labor Economy

To simplify the concept of labor economy for his university students, Mikal Skuterud often presents them with a fundamental question: Would they rather graduate during a period of job scarcity or worker scarcity?

When faced with this question, the majority of students opt for a time when workers are scarce. This preference stems from the idea that in a scenario where workers are in high demand, individuals can benefit from a wide range of job opportunities and potential perks, such as increased wages. However, the extent of these advantages can vary depending on the industry, according to Professor Skuterud, an expert in labor economics at the University of Waterloo in Ontario.

Professor Skuterud emphasizes that labor shortages are not typically viewed by labor economists as a primary economic issue that requires immediate government intervention. Instead, they see such shortages as a positive aspect for workers and job seekers.

Temporary Foreign Workers in Canadian Agriculture

Agriculture in Canada has a long-standing reliance on temporary foreign workers to support its operations.

The Canadian government has recognized the importance of addressing labor gaps by welcoming foreign workers. To this end, the government has established a target of attracting 1.45 million immigrants between 2023 and 2025. This initiative, announced two years ago, is deemed crucial for Canada’s future prosperity and its capacity to sustain public services.

Canada’s immigration strategy has traditionally focused on attracting highly skilled individuals. The country’s geographical position, relatively isolated from regions experiencing significant emigration challenges, allows it to be selective in choosing prospective immigrants.