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2014 Comparing US and Canadian Policies Laurie Trautman Western Washington University

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Recommended Citation Trautman, Laurie, "Comparing US and Canadian Foreign Worker Policies" (2014). Border Policy Research Institute Publications. 13. https://cedar.wwu.edu/bpri_publications/13

This Border Policy Brief is brought to you for free and open access by the Border Policy Research Institute at Western CEDAR. It has been accepted for inclusion in Border Policy Research Institute Publications by an authorized administrator of Western CEDAR. For more information, please contact [email protected]. BORDER POLICY BRIEF | SUMMER 2014 Comparing U.S. & Canadian Foreign Worker Policies

Volume 9, No. 3 Summer 2014 by Laurie Trautman Web Address: www.wwu.edu/bpri

The programs listed below import workers in a range of Introduction. In both the U.S. and , reform is a positions either seasonally or politically, economically and emotionally contentious issue. One for a limited number of years. component of immigration policy in particular – the use of temporary foreign labor – is an important aspect of policy reform in both Canada’s Temporary countries. This Border Policy Brief explores the policies used by Foreign Worker Program: Canada and the U.S. to import temporary foreign workers, often  41,000 High-skilled referred to as „guest workers,‟ particularly in lower-skilled occupations  17,000 Live-in Caregivers such as agriculture, hospitality and caregiving. Although both countries  28,000 Seasonal Agricultural are increasingly relying on foreign workers to fill lower-skilled labor Workers needs, they are doing so in very different ways.  40,000 Low-skilled Pilot 126,000 workers present Background. Over the last two decades, a growing percentage of in 2013 labor in the U.S. and Canada has consisted of foreign workers with- out permanent status. In the U.S., such workers remain largely unauthorized and have arguably become a structural element in U.S. ‘Guest Worker’ Visas: many sectors of the U.S. economy. For example, it is estimated that 1  153,000 H-1B (high-skilled) nearly half of the farm labor force in the U.S. is unauthorized. Canada,  74,000 H-2A (agricultural) on the other hand, has increasingly recruited foreign workers through  57,600 H-2B (low-skilled) official programs such as the Temporary Foreign Worker Program 284,600 visas issued (TFWP). in 2013 Policies. Both Canada and the U.S. have a variety of programs for

importing foreign workers, with separate streams for high-skilled,

low-skilled, and agricultural workers. In both countries, the process While the number of workers for obtaining workers in the latter two categories is initiated by on these programs is relatively small in comparison to the individual employers and requires approval from several separate overall labor force in both agencies before employment can commence. Such workers have countries, they comprise an restricted work permits and are only able to switch between employers important source of workers who have acquired a positive labor market certification. In order to for many small businesses. achieve a positive certification, employers must first advertise the Furthermore, employer reliance on these programs can influence job for a defined period of time at a pre-determined wage to prove hiring strategies and labor no native workers are available. In Canada, many positions are market dynamics, particularly exempt from this process, while in the U.S. many higher-skilled at the local scale and in certain positions require a simple labor market attestation in lieu of certification.1 sectors of the economy.

2013. Canada, Immigration & Source:

services.

in construction, accommodation and food food and accommodation construction, in

primarily employed TFWP, the on workers foreign

Alberta currently has the largest number of of number largest the has currently Alberta

30%

4%

9%

India. and U.S. , , the 2%

35%

14%

Workers in these provinces arrived mainly from from mainly arrived provinces these in Workers

y. respectivel 2012 to 2001 from 560% and 348% of

increases with streams), (all present workers foreign

saw significant growth in the number of of number the in growth significant saw Alberta

percentages of workers (Figure 2). B.C. and and B.C. 2). (Figure workers of percentages

o, Alberta and B.C. importing the largest largest the importing B.C. and Alberta o, Ontari

2013. provinces, top by 1 December present

The TFWP is used throughout Canada, with with Canada, throughout used is TFWP The Percent distribution of TFWP permit holders holders permit TFWP of distribution Percent 2. Figure

process. immigration

Source: Employment & Social Development Canada, 2013. Canada, Development Social & Employment Source:

to residency than the traditional federal federal traditional the than residency to permit holders TFWP

economy, as well as more efficient avenues avenues efficient more as well as economy, 2004 2002 2012 2010 2008 2006

to the needs of the Canadian Canadian the of needs the to responsive 0

skill sets. They are meant to be more more be to meant are They sets. skill

40

work experience in Canada and particular particular and Canada in experience work

80

require programs These caregivers. in - live for

present

Nominee Program, and a path to residency residency to path a and Program, Nominee

120

Provincial the Class, Experience Canadian the

(thousands) 160 to apply for permanent residency, including including residency, permanent for apply to

enable temporary foreign workers (TFWs) (TFWs) workers foreign temporary enable

Low-skilled workers Low-skilled workers High-skilled

have been established and expanded to to expanded and established been have

Over the last decade, several programs programs several decade, last the Over

2013. - 2002 holders, permit TFWP for levels Skill 1. Figure

arriving under historical programs equivalent to IMPs, although this trend has since reversed. reversed. since has trend this although IMPs, to equivalent programs historical under arriving

TFWP was numerically unrestricted. From 2007 to 2009, the TFWP outweighed the number of workers of number the outweighed TFWP the 2009, to 2007 From unrestricted. numerically was TFWP

skilled workers since the early 2000s (Figure 1). Until policy changes in 2014, the the 2014, in changes policy Until 1). (Figure 2000s early the since workers skilled - low by dominated

skilled workers do enter Canada under the TFWP, that program has been increasingly been has program that TFWP, the under Canada enter do workers skilled - high some Although

TFWP is designed to meet acute labor needs, primarily in agriculture, hospitality and caregiving. caregiving. and hospitality agriculture, in primarily needs, labor acute meet to designed is TFWP

skilled workers and do not require a labor market certification, while the the while certification, market labor a require not do and workers skilled - higher for are IMPs speaking,

Programs (IMPs), created in 2014, and the Temporary Foreign Worker Program (TFWP). Broadly Broadly (TFWP). Program Worker Foreign Temporary the and 2014, in created (IMPs), Programs

Foreign worker programs can be broken down into two main categories: International Mobility Mobility International categories: main two into down broken be can programs worker Foreign

primarily by the presence of foreign workers, who increased from 90,000 in 2000 to 386,000 in 2013. 2013. in 386,000 to 2000 in 90,000 from increased who workers, foreign of presence the by primarily

a trend which has persisted since. The growth in temporary residents has been driven driven been has residents temporary in growth The since. persisted has which trend a – residents

In 2007, for the first time in history, Canada welcomed more temporary residents than permanent permanent than residents temporary more welcomed Canada history, in time first the for 2007, In

Canada

2013. State, of Department U.S. Source:

2005 2000 1995 1990 2010

0

20,000

agricultural 2A - H

40,000

60,000

VisasIssued

80,000

skilled - low 2B - H

100,000

120,000

140,000

skilled - high 1B - H

160,000

180,000

Figure 4. 4. Figure 2012 - Issued,1990 Visas 2B - H & 2A, - H 1B, - H

2010. Center, Research

4). (Figure increase consistent a

Source: U.S. Department of State, 2013 and Pew Pew and 2013 State, of Department U.S. Source:

1B visas have continued to fluctuate rather than exhibit exhibit than rather fluctuate to continued have visas 1B - H

expanded considerably since 1990. However, since 2000 2000 since However, 1990. since considerably expanded 2010

increase 37% 2000

skilled) workers has has workers skilled) - (high 1B - H of number the Overall,

issued

workers.

2A visas visas 2A - H & 2B - H

000 75, 103,000

2B 2B - H returning to pertained only that policy year three

temporary a under occurred program 2B - H the of expansion

2010

increase 45% 2000

did not have any numerical restrictions, while the the while restrictions, numerical any have not did TFWP

peaked around 2008/2009, it is important to note that the the that note to important is it 2008/2009, around peaked

U.S. by 40% from 2002 to 2013. Although both programs programs both Although 2013. to 2002 from 40% by

workforce in the the in workforce increasing moderate, relatively been has U.S. the in workers

Unauthorized

Million 2A (agricultural) (agricultural) 2A - H and skilled) - (low 2B - H of growth the

5.5

2002 and 2009 and grew by 165% from 2002 to 2013) 2013) to 2002 from 165% by grew and 2009 and 2002 Million 8

workers under Canada‟s TFWP (which tripled between between tripled (which TFWP Canada‟s under workers

2010. - 2000 visas, 2B - H & 2A - H in growth

In comparison to the massive expansion of low of expansion massive the to comparison In skilled skilled - Growth in unauthorized workforce vs. vs. workforce unauthorized in Growth 3. Figure

50%. roughly

workers average less than 20% of hired crop farmworkers, while unauthorized workers account for for account workers unauthorized while farmworkers, crop hired of 20% than less average workers

workers remain numerically unrestricted, yet the program is not heavily utilized. For example, H example, For utilized. heavily not is program the yet unrestricted, numerically remain workers 2A 2A -

permitted. often are cap the to exceptions additional and cap, the from exempted 2A 2A - H contrast, In

program has had an annual cap of 66,000 visas although from 2005 to 2008 returning H returning 2008 to 2005 from although visas 66,000 of cap annual an had has program were were workers 2B -

workers, who far outweigh the number of guest workers admitted annually (Figure 3). Since 1986, the H the 1986, Since 3). (Figure annually admitted workers guest of number the outweigh far who workers, 2B 2B -

labor. Both programs import workers in industries that also tend to employ large numbers of unauthorized of numbers large employ to tend also that industries in workers import programs Both labor.

used primarily to fill jobs in landscaping, recreation and housekeeping while the H the while housekeeping and recreation landscaping, in jobs fill to primarily used 2A visa is for farm farm for is visa 2A -

in 1986, the last major comprehensive immigration reform passed in the U.S. The H The U.S. the in passed reform immigration comprehensive major last the 1986, in 2B program is is program 2B -

2B programs were established under the Immigration Reform and Control Act Act Control and Reform Immigration the under established were programs 2B - H and 2A - H current The

States United

Policy Implications. As a result of the expansion of the TFWP in Canada, particularly in low-skilled

occupations, recent policy changes have aimed to tighten the program‟s hiring process to better protect Canadian workers. According to the Government of Canada, although the program was created as a “last and limited resort,” it has led to a “growing practice of employers building their business model on access to the TFWP” (ESDC, 2014). Other policy changes include reduced stay for low-wage workers, reforming the labor certification process, increasing fees and introducing a cap on the percentage of TFWs that individual businesses can employ. Small businesses in particular may experience difficulties as a result of these changes, which have yet to be felt. In contrast to the recent efforts to overhaul Canada‟s TFWP, guest worker programs in the U.S. have remained relatively unchanged since 1986, reflecting broader difficulties in reforming immigration policy. As the U.S. continues to debate comprehensive immigration reform, which has been stalled since early 2013, important changes to its are also being proposed. One current proposal would considerably expand guest worker programs and replace the employer-based model that requires individual labor certifications with an open work permit. Concerns about unauthorized immigration continue to drive much of the debate and, despite an acute downturn during the recent recession, there are indications that the number of unauthorized immigrants arriving annually in the U.S. is again trending upward.

Lessons Learned. Canada‟s formal reliance on TFWs relative to the overall labor force far outweighs the U.S. However, U.S. dependence on unauthorized workers, who accounted for 5.2% of the labor force in 2010, also signifies a heavy reliance on temporary foreign labor, albeit in an informal manner. For both TFWs and unauthorized workers, their social, economic, and geographical mobility is severely restricted. They remain vulnerable to exploitation while at the same time employers have developed a structural dependence on a workforce that is inhibited from participating fully in both the economy and society. These issues reflect broader concerns about labor mobility and citizenship in North America, particularly as economic integration is liberalized, while the movement of labor remains heavily regulated. Under the system of Canadian federalism, provinces have some ability to shape TFWPs and define criteria for permanent residency. For example, the Provincial Nominee Program enables employers to nominate TFWs for residency. While this policy may overcome some concerns about social and economic mobility, privatization of permanent residency may also exacerbate the exploitation of TFWs, as they become more strongly tied to their employers. In the U.S., matters of immigration remain primarily the responsibility of the federal government, yet some devolution has occurred.2 If individual states are ever granted greater control over guest worker policies or the unauthorized population, it will be important to learn from Canada‟s experience.

Endnotes 1. Attestation requires employers state that no native workers are available instead of advertising to prove the need for foreign workers. 2. For example, the 287G program (created in 1996) enables local law authorities to initiate deportation proceedings. References Employment and Social Development Canada, “Overhauling the Temporary Foreign Worker Program.” www.esdc.gc.ca/eng/jobs/foreign_workers/reform/index.shtml. U.S. Department of State, „Report of the Visa Office, 2013.” www.travel.state.gov/content/visas/english/law-and-policy/statistics/annual-reports/report-of-the-visa-office-2013.html. Department of Agriculture, “Farm Labor.” www.ers.usda.gov/topics/farm-economy/farm-labor/background.aspx#.U_ZKvWPEfCo. Citizenship & Immigration Canada, “Facts & Figures,” 2010, 2012, and 2013. www.cic.gc.ca. Employment and Social Development Canada, “Number of temporary foreign worker positions on positive labour market opinions, by industry sector.” www.esdc.gc.ca/eng/jobs/foreign_workers/lmo_statistics/annual-industry.shtml. U.S. Department of State, “Non-Immigrant Visa Issuances by Visa Class and by Nationality.” www.travel.state.gov/content/visas/english/law-and-policy/statistics/non-immigrant-visas.html. Pew Research Center, “Unauthorized Immigrant Population: National and State Trends, 2010,” and “Population Decline of Unauthorized Immigrants Stalls, May Have Reversed,” 9/23/2013. www.pewhispanic.org/category/publications.