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2013-04-23

Kevin Carmichael

The Globe & Mail

Ottawa

Bank of Canada Governor Mark Carney stepped into the debate over the expanded use of Canada’s temporary foreign worker program, advising against developing “overreliance” on using workers from abroad to fill low-paying jobs.

Mr. Carney’s comments came during what likely was his last appearance before the House Finance Committee before leaving his post in June to become governor of the Bank of England. The federal government is reviewing the temporary foreign worker program, which has expanded to cover some 330,000 people, double the number of six years ago.

overnments grant companies permits to recruit outside the country to plug tough-to-fill jobs, ranging from farm labourers to computer engineers. Given the program’s rapid expansion in Canada, there are worries companies are using the program simply for cheap labour. Last year, the leading recipients of temporary work permits were food counter attendants, kitchen helpers, cooks and truck drivers.

Mr. Carney didn’t comment on the Canadian program specifically.

In general, he said the main purpose of the foreign worker program should be to help companies fill high-skill jobs for which there simply are too few Canadians who are adequately trained. The program also should fill “temporary gaps” in the labour market, but avoid creating incentives for companies to avoid training Canadian workers, he said. And he said the government must guard against abuse; otherwise, the effect will be to put downward pressure on wages, which in turn leaves companies with an excuse to avoid becoming more productive because they can keep up with demand by hiring cheap labour.

“One doesn’t want a reliance on temporary workers for lower-skilled jobs,” Mr. Carney told the committee. Later, he added: “It is important over a reasonable time period to ensure that the market adjusts, and then there will be productivity and other adjustments that ensure that Canadians are paid more and that we are a more productive economy as a whole.”

• http://www.theglobeandmail.com/report-on-business/economy/carney-warns-of-overreliance-on-foreign-workers-for-low-paying-jobs/article11498835/

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