When a business faces a labour shortage, the free market says they should raise wages. So why is Canada’s government stepping in to make labour cheaper instead?
In this episode of The Missing Middle, Cara Stern and Mike Moffatt dive into how Canada's low-wage Temporary Foreign Worker (TFW) program and the explosion of international student work caps have completely disrupted the laws of supply and demand. As Canadian youth face historic unemployment rates, we break down how corporate lobbying and government policy created a cheat code that insulates businesses from capitalism, while pushing young workers off the first rung of the career ladder.
From the housing crisis in Alberta's mountain tourist towns to Tim Hortons' recent PR scramble, we expose the loop of corporate reliance on exploitable temporary labor and ask: how do we let the market actually fix itself?
Topics covered:
- Canada's rising youth unemployment rate
- The Temporary Foreign Worker Program explained
- How international student work rules affect the job market
- Why labour shortages don't always mean there aren't enough workers
- Seasonal jobs, tourism, and staff housing
- The economics of wages, supply, and demand
- Tim Hortons and the TFW controversy
- Policy solutions to improve opportunities for young Canadians
#Canada #YouthUnemployment #TemporaryForeignWorkers #Jobs #CanadianEconomy #LabourMarket #Economics #Immigration #PublicPolicy #MissingMiddle
Chapters:
00:00 - The Free Market Myth in Canada
01:24 - Gen Z vs. Gen X: The Youth Unemployment Crisis
02:12 - Why Student Jobs Suddenly Vanished
03:32 - How the TFW Program Ballooned Over 50 Years
05:39 - The Corporate Lobbying Flipping Immigration Rules
07:11 - Debunking the Alberta "Labour Shortage"
09:47 - Why Canada Insulates Businesses From Capitalism
11:11 - What "Dirty Dancing" Teaches Us About Seasonal Housing
14:06 - The Dark Side of Temporary Work Regulations
16:02 - Exposing Tim Hortons' "Local Hiring" PR Spin
18:57 - How to Break the TFW Doom Loop
Research/links:
Tourist towns ‘desperate’ for workers in Alberta
https://www.cp24.com/news/2026/03/28/i-have-to-find-at-least-35-people-before-june-1-worker-shortages-in-albertas-tourist-towns/
Tim Hortons says it will hire locals, scale back temporary foreign workers
https://globalnews.ca/news/11863474/tim-hortons-temporary-foreign-workers/
Tim Hortons is Committed to Local Hiring Launching National Campaign to Hire 10,000 Local Team Members
https://www.news.timhortons.ca/en/articles/tim-hortons-is-committed-to-local-hiring-launching-national-camp
Youth unemployment in Canada jumped 57% in 3 years, hitting levels previously unseen outside a recession
https://thehub.ca/2026/05/07/canadas-youth-unemployment-jumped-57-in-3-years-hit-unprecedented-jobless-levels-outside-recession-by-2025/
Youth unemployment in Canada near record highs since 2022; unprecedented levels outside of a recession
https://www.fraserinstitute.org/studies/extraordinary-increase-youth-unemployment-canada
https://www.fraserinstitute.org/sites/default/files/2026-04/extraordinary-increase-of-youth-unemployment-in-canada.pdf
Temporary ForeignWorkers in Canada:Are They Really Filling Labour Shortages?
https://cdhowe.org/wp-content/uploads/2024/04/commentary_407.pdf
StatsCan: Drayton Valley statistical area sees lowest unemployment in Alberta at 4.9 per cent
https://www.bigwestcountry.ca/2026/06/05/statscan-drayton-valley-statistical-area-sees-lowest-unemployment-in-alberta-at-4-9-per-cent/#:~:text=According%20to%20the%20latest%20Labour,5.3%20per%20cent%20in%20April
Canada’s Temporary Foreign Worker Programs - The Canadian Encyclopedia
https://thecanadianencyclopedia.ca/en/article/canadas-temporary-foreign-worker-programs
Businesses face new limits on temporary foreign worker program
https://www.cbc.ca/news/business/tfw-program-new-limits-1.7333777
3 problems with the temporary foreign worker program and 3 possible fixes, according to experts
https://www.cbc.ca/news/canada/calgary/temporary-foreign-worker-program-fixes-1.7633045
Hosted by Mike Moffatt & Cara Stern & Sabrina Maddeaux
Produced by Meredith Martin
Funded by the Neptis Foundation https://neptis.org/