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In this episode, we dive into the big issues facing Canada’s economy and housing market: from temporary foreign workers (TFWs) and rising unemployment rates to the sharp decline in new condo developments. We explore the long-term impact on Canada’s workforce and housing, and how government policies are shaping the future of employment and real estate.

Topics Covered:

1. Canada Cutting Back on Temporary Foreign Workers (TFWs):
   • Canada is reducing the number of low-wage TFWs to address high unemployment rates among immigrants and young people.
   • Sectors with 6%+ unemployment won’t be allowed to hire TFWs, except for food security, construction, and healthcare sectors.
   • TFW program changes include limiting TFWs to 1-year contracts and capping employers from hiring more than 10% of their workforce through the program.
2. Unemployment Statistics:
   • Newcomer unemployment at 11.6% and youth unemployment (ages 15-24) at 13.5%—the highest in a decade.
   • A growing crisis highlighted by the UN calling Canada’s TFW program "a breeding ground for modern-day slavery."
3. The Strain on Housing:
   • Not enough housing for the influx of TFWs.
   • Canada holds the highest number of TFWs in the G7, with job fairs overwhelmed by applicants struggling to find work.
4. New Developments Dropping Off a Cliff:
   • In July 2024, only 266 pre-construction condos were sold compared to a 10-year average of 2000 units.
   • Appraisals are falling short, while development fees are rising. Burnaby, for example, increased development fees to $50K per unit after receiving $80M from the federal government for the Housing Accelerator Fund.
5. The Future of Condo Development:
   • Developers may shift to subscription-based models, building rental units instead of condos for sale to capitalize on easy, long-term revenue gains.

Key Takeaways:

• Canada's TFW program is being scaled back to address unemployment, but the housing shortage for these workers remains a serious issue.
• New condo developments have hit record lows, with developers potentially shifting towards rental projects.
• Rising development fees and appraisals coming in short are further hindering real estate growth.

Resources Mentioned:

• Arpan Khanna's video on the immigration crisis (MP for Conservatives in Oxford, ON)
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