The federal government’s abrupt changes to the international student visas and work permits for accompanying spouses may hurt small businesses that are already struggling to grow and stay productive due to staffing challenges, warned the Canadian Federation of Independent Business (CFIB) in a news release on Wednesday.
In late January, Minister Marc Miller announced an immediate two-year cap on international student visas as well as the changes around accompanying spouses and post-graduate work permits. The federal government said it’s also reviewing its temporary foreign worker (TFW) program, said the CFIB.
Dan Kelly
“The recent changes will impact many small businesses who are grappling with labour shortages, particularly those in smaller and rural communities,” said CFIB president Dan Kelly. “While it’s understandable why government wants to put some limits in place, it needs to move carefully and consider implications for the whole economy.
“Many smaller, private colleges are better able to offer the type of training most needed by employers compared to larger, publicly funded institutions. We need to be careful not to paint everyone with the same brush as many private trainers are instrumental in training professionals in skilled trades where Canada is experiencing a labour crunch.
“Minister Miller is now talking about further changes to the hours students can work as well as an overhaul of the TFW program. This would reverse some of the helpful changes that the government made a few years ago. Let’s not forget that employers are required to pay TFWs a wage set by government and must help with housing for TFWs in lower-skilled occupational categories.”
As provinces will be responsible for distributing permits among universities and colleges in their jurisdictions, the CFIB said it is also concerned that public institutions will be prioritized while private colleges will be overlooked.
It said the TFW program is one of the most effective solutions in addressing labour shortages. CFIB’s 2021 research showed that among the 16% of small businesses that reported using the TFW program, it had a success rate of 52% in addressing their labour needs, well above the success rates for raising wages (31%) or providing more flexibility with work hours (38%).
The CFIB is recommending that Ottawa hold open and public consultations on the recent announcements and any future potential changes.
Jasmin Guénette
“This is not the time to act hastily. All factors need to be considered, especially when labour shortages cost small businesses over $38 billion in lost revenue opportunities,” said Jasmin Guenette, Vice-President of National Affairs at CFIB.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
About Us
Canada’s Podcast is the number one podcast in Canada for entrepreneurs and business owners. Established in 2016, the podcast network has interviewed over 600 Canadian entrepreneurs from coast-to-coast.
With hosts in each province, entrepreneurs have a local and national format to tell their stories, talk about their journey and provide inspiration for anyone starting their entrepreneurial journey and well- established founders.
The commitment to a grass roots approach has built a loyal audience on all our social channels and YouTube – 500,000+ lifetime YouTube views, 200,000 + audio downloads, 35,000 + average monthly social impressions, 10,000 + engaged social followers and 35,000 newsletter subscribers. Canada’s Podcast is proud to provide a local, national and international presence for Canadian entrepreneurs to build their brand and tell their story.
