'A unique trend': Alberta employers rely more on temporary foreign workers for business roles

As the federal temporary foreign worker program expands, employers in Alberta are relying on them more to fill labour gaps in business, finance and administration roles.

People who keep a close eye on the job market say it's an "interesting turn of events" as demand for workers grows in that sector in the province.

CBC News analyzed federal data about the number of positions on positive labour market impact assessments (LMIAs), a document proving there are no Canadians available to take a job.

The numbers show a 1,251 per cent increase in approvals given to Alberta employers to hire temporary foreign workers for business, finance and administration roles between 2018 and 2023. That's the highest increase of all recorded job categories.

For context, in 2023, Alberta employers received clearance to hire 2,242 approvals. That's compared to 166 positive LMIAs given in 2018.

An increase in positive LMIA positions doesn't necessarily mean there are more temporary foreign workers in the country. For example, an approved employer might change their mind before actually hiring one.

But the data reflects employers' rising interest in the program, and local labour shortages in the roles they're relying on temporary foreign workers to fill.

What's causing the shift?

"It's a very interesting turn of events," said Cristina Schultz, the recruitment manager with About Staffing in Calgary, who has noticed more employers turning to temporary foreign workers for accounting and finance roles in particular.

The top jobs in that sector in 2023 were administrative assistants, accounting technicians and bookkeepers, and administrative officers.

"It's a unique trend to see employers shifting where they're a lot more open to that transferable experience versus the fundamental knowledge of having the work done locally," said Schultz.

She attributes it partially to an uptick in temporary contracts as companies keep a closer eye on their finances. Instead of hiring permanent staff, some are looking for people who can help out for just the right amount of time, she said.

Locals who used to be keen to fill those jobs may not be inclined now due to the stigma that temporary contracts mean lower pay or less market value, she said.

So who's left to fill those roles? People who "will take on just about anything in order to sustain themselves and kind of sink in some roots," she said.

She said those workers see that a temporary opportunity gets your foot in the door.

"I think people outside of the local market have a better understanding of that than locals do. And I think that's the biggest shift as to why we're maybe seeing this trend."

At the Business Council of Alberta, chief economist and vice president of policy Mike Holden says it's important to add that, historically, these jobs are harder to fill.

The council's recent labour market report shows there was a 250 per cent increase in job postings for accounting, insurance and related business-administrative occupations between 2019 and 2023.

Add in a post-pandemic spike of job vacancy rates in that sector, and he said he isn't surprised businesses are turning to temporary foreign workers more.

But he isn't expecting this trend to last, now that hiring is slowing and fewer jobs are being created. He said the federal government's tightening of restrictions on those workers will likely deter companies, too.

"In the long term, you would expect or hope that kind of thing would correct itself over time, whether that's because the shortage creates wage pressures in those positions or whether more Canadians or people who are studying in Canada take it through their study," said Holden.

Skills mismatch

At Mount Royal University, the dean of the faculty of business and communication studies says she suspects the shortage of local workers in that sector all comes down to a skills mismatch.

Kelly Williams-Whitt says roughly 400 students graduate from MRU's bachelor of business administration program each year, with that number expected to rise in coming years due to expanded enrolment that began in 2022.

"Either the positions aren't attractive to the new graduates because the salary or type of work is not meeting their expectations, or it could be that employers are seeking higher or more advanced levels of competence than students have when they're just coming out of university," said Williams-Whitt.

She says post-secondary institutions can help employers by looking at the specific skills they need and supporting students with taking the certifications or micro-credentials they need.

On the other hand, employers can try to make those positions as attractive as possible for new grads, by doing things like increasing wages and offering flexible work arrangements.

Food counter attendants now top job

The business, finance and administration occupations saw the biggest growth in approvals for temporary foreign workers in Alberta, but they aren't the most common jobs for those workers in the province.

The top approved jobs for temporary foreign workers in 2023 were food counter attendants (2,828 approvals), general farm workers (2,723), cooks (2,247) and food service supervisors (2,096).

Former temporary foreign worker Jenefer Singh, who arrived in St. Albert from the Philippines in 2009, said she's happy to see there are more business jobs available for migrant workers.

She hopes it will be easier for those workers to secure their permanent residency than it was for her as a food counter attendant at Dairy Queen.

The only way for Singh to become a permanent resident was to find a higher-skilled job or be promoted to supervisor. It felt like an impossible feat at the time, so after four years of working, she gave up hope and decided to go back home.

"I don't want to say we [were] in competition, but everybody needs the same position to get their permanent residency," said Singh.

Fortunately, at the last minute, her employer was able to give her the promotion she needed. She became a permanent resident in 2014 and today, she still lives in St. Albert with her husband and two kids.

"Even at a younger age, I really had the desire to go outside the Philippines to work for a better life, to support my family in the Philippines and of course for my future family," said Singh.

"I'm happy to stay here."