Alberta business groups say the federal government’s recently reduced immigration targets could make it harder for employers to find new workers.

Ottawa announced a new strategy Thursday on immigration levels to cope with rapid population growth and relieve pressures on the housing market. The federal government plans to reduce the number of new permanent residents from a planned 485,000 this year to 395,000 in 2025, with further reductions to 380,000 in 2026 and 365,000 in 2027.

This is a substantial change from Canada’s previous immigration plan, released November 2023while the country was expected to welcome around 485,000 permanent residents this year and 500,000 in 2025 and 2026.

It’s a change that worries many Alberta employer advocates.

“These changes will have major impacts on the labor market,” Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), told CBC News on Friday.

“There are a group of temporary foreign workers in Canada today who are working for them, happy in their jobs, but whose visas are about to expire and who are going to be sent home. It’s such a waste of talent.”

CFIB represents approximately 10,000 small businesses in Alberta.

Since Thursday’s announcement, Kelly says CFIB has heard from employers who call her “in tears” over how this new immigration plan, coupled with recent changes to Canada’s Temporary Foreign Worker Program, will modify their daily activities.

“Look, many employers will tell you that their new immigrant worker, their temporary foreign worker, is some of their best workers, because their goal for coming to Canada is to work and build a better life,” Kelly said.

He also says roles filled by temporary foreign workers and permanent immigrants are often vacancies for months, which he says suggests employers are already struggling to find the people they need.

Above all, he says, recruiting newcomers often benefits Canadian workers. Using restaurant staff as an example, Kelly says these companies often rely on foreign workers to fill kitchen and other back-of-house positions that would otherwise be difficult to fill, supplementing the work of domestic employees who already fill the front of the house.

When it comes to Alberta’s restaurants, business advocates say the province’s staffing challenges are linked to a divide between rural and urban areas.

Mark von Schellwitz, vice-president of Western Canada for Restaurants Canada, says a number of the organization’s members are experiencing labor shortages, particularly in rural Alberta communities.

“Let’s be realistic, with the demographic labor shortages we are experiencing and not going away anytime soon, a growing number of restaurants are relying on immigrants, coming through various programs, to supplement their staff ” he said. .

“Without them, they couldn’t run their restaurant.”

The province’s accommodation and food services sector reached an unemployment rate of 7.5 per cent in September 2024, the third highest rate among sectors, according to Alberta Education . economic dashboard.

Although von Schellwitz believes immigration has placed additional pressure on resources, he hopes industry partners can work with all levels of government to ensure the sector becomes an attractive long-term employment choice for Canadians. existing and new arrivals.

Workers not paid enough, advocate says

However, a worker advocate says this new federal government measure could benefit domestic workers.

Gil McGowan, president of the Alberta Federation of Labor (AFL) — which represents unions and workers across Alberta — says the federal government initially exceeded its immigration targets, which he says has had a tangible impact on the cost of living for Albertans.

“This particular version of the Trudeau government… has actually been quite good for workers, including Alberta workers,” he said.

“But there was one important area where we had concerns and reservations, and that was immigration. Specifically, we felt very strongly that they had made a mistake in allowing too many people into the country too quickly , particularly as non-permanent residents.”

Overall, he supports Ottawa’s decision to reassess the immigration plan and propose new measures.

McGowan believes the root of labor shortages identified by groups like CFIB and Restaurants Canada comes from the idea that these jobs don’t pay enough to be attractive to domestic workers.

Canada’s population will decline

More than 200,000 people moved to Alberta in 2023, a record increase in population growth for the province, marking an annual surge of 4.1 per cent. The same year, Canada’s population increased by 3.2 percent, the largest increase in a year. since 1957.

Ottawa’s new immigration plan says Canada’s population will shrink by 0.2 percent over the next two years, a notable change from last year’s 3.2 percent increase — the largest annual increase since 1957, according to Statistics Canada.

Some say sharp population fluctuations pose challenges to the industry’s ability to plan large projects.

Warren Singh, executive director of the Alberta Construction Association (ACA), says the province’s construction sector would benefit from a balanced approach to immigration levels.

“As we look at where the federal government wants to go over the next few years, we understand where it is coming from. But at the same time, I think we still have a shortage of skilled labor in the province of Alberta,” Singh said. , adding that the shortage of skilled workers poses a challenge for the trades.

Singh says ACA members hope both levels of government will examine ways to attract a skilled workforce to the province, as the construction industry needs to be able to predict its ability to meet current and future demand for projects.

He said Thursday’s announcement could also have an impact on current workers in the construction sector.

“There’s this narrative of doing more with less. They’re going to have to do more,” he said, noting that there are always projects that require skilled labor, but that the workforce participates in determining the means to achieve these objectives.