A recent report from Blacklock’s Reporter highlighted that the Canadian federal government hired 889 foreign students in 2024 for various roles across departments, despite policies mandating priority for Canadian citizens and veterans. This has sparked debate amid rising youth unemployment in Canada, where Canadian students face increasing competition from international students and temporary foreign workers (TFWs). The issue gained traction on social media, with discussions focusing on perceived favouritism toward non-Canadians in taxpayer-funded jobs. This investigation examines the details of these hirings, federal policies, the broader employment context, and the direct and indirect impacts on Canadians seeking jobs. It draws from government data, economic analyses, and media reports to provide a balanced view, acknowledging both the economic benefits of international students and the challenges they pose to domestic job seekers.
The Blacklock’s report, based on documents from an Inquiry of the Ministry tabled in the House of Commons, revealed that federal departments employed 889 foreign students in 2024. These hires occurred while the government lamented “economic shocks” affecting unemployed Canadian students. Key breakdowns include:
- National Research Council Canada (NRC): 135 hires, primarily in research roles.
- Canada Mortgage and Housing Corporation (CMHC): 30 hires, in administrative and analytical positions.
- Canadian Broadcasting Corporation (CBC): Researchers.
- Canada Revenue Agency (CRA): Clerks and IT staff.
- National Arts Centre (NAC): Kitchen staff and stagehands.
- Federal Museums: Tour guides and gift shop assistants.
The Treasury Board Secretariat emphasized that the Public Service Employment Act prioritizes “eligible veterans first, then Canadian citizens and permanent residents for all external advertised appointments provided that merit is met.” However, the report noted a correlation with a 2023 policy change allowing over 1 million foreign students unlimited off-campus work hours, which coincided with rising Canadian student joblessness.
This story has been echoed across platforms, including social media and financial commentary, without major refutations. No mainstream outlets have disputed the figures, though the full documents remain behind Blacklock’s paywall, limiting independent verification.
Federal Hiring Policies for Students
The federal public service primarily recruits students through programs like the Federal Student Work Experience Program (FSWEP), which offers full- or part-time opportunities across Canada. FSWEP prioritizes Canadian citizens and permanent residents, but international students with valid work-eligible visas can be considered if no qualified Canadians are available. This aligns with the Public Service Employment Act’s merit-based framework, but critics argue enforcement is lax, especially in specialized roles like research at NRC or CBC.
International students can work off-campus up to 24 hours per week during studies (as of November 2024) without a separate work permit, provided they meet conditions. Employers, including federal departments, can hire them directly if they qualify. Post-graduation, options like the Post-Graduation Work Permit (PGWP) allow full-time work, potentially leading to bridging into public service roles. However, data shows international graduates face underemployment, with only 36% in roles matching their bachelor’s degrees three years post-graduation, compared to 59% for Canadians.
Current Employment Landscape
Canada’s youth unemployment (ages 15-24) reached 14.2% in mid-2025, up from 9% two years prior—the highest non-pandemic level in over a decade. For returning students, it hit 17.4% in June 2025. Recent immigrants (including former international students) face 11-23% unemployment.
International student numbers peaked at over 1 million in 2023-2024, but policy changes led to a net decline of 14,954 temporary residents between 2024 and 2025—the first drop in years. New study permit holders fell 97% from the 2023 peaks. TFW arrivals dropped to 2,615 in November 2025, the lowest in two years.
Impacts on Canadians Seeking Employment
The hiring of foreign students exacerbates competition in entry-level and student jobs, particularly in sectors like retail, hospitality, and public service. Economists link this to wage suppression and displacement, as TFWs and students fill roles that could provide Canadians with early work experience. Long-term “scarring effects” include reduced future earnings and career progression for unemployed youth.
In public service, these hirings raise security concerns (e.g., IT at CRA) and questions of equity, as taxpayers fund jobs potentially bypassing Canadians. Minimum wage hikes and trade uncertainties further limit opportunities. However, international students also face barriers like undervalued credentials, contributing to their own underemployment without fully alleviating shortages.
Broader Economic Context
International students contribute $37.3 billion annually, supporting 361,230 jobs and $30.9 billion in GDP. They fill gaps in STEM and health sectors, with better long-term outcomes than other immigrants. Critics argue that over-reliance on low-wage TFWs distorts the market, but economists note TFWs are not the “main factor” in youth unemployment—economic slowdowns and population growth play larger roles. Blaming students risks scapegoating, as their participation rate is high but often in mismatched jobs.
Recent Policy Changes and Effects
To address imbalances, Canada implemented:
- Caps on study permits (down 35% in 2024, further in 2025).
- Moratorium on low-wage LMIAs in 6%+ unemployment areas.
- Reduced work permit durations and spousal eligibility.
These have slowed inflows, potentially easing pressure on youth jobs, though effects may take time. Major cities like Toronto and Calgary saw the largest drops.
Final thoughts
The federal hiring of 889 foreign students in 2024 underscores gaps in enforcing Canadian-first policies, intensifying competition for entry-level jobs amid 14-17% youth unemployment. While international students bolster the economy and fill shortages, their influx—combined with TFWs—has displaced some Canadians, leading to potential long-term scarring. Recent reforms signal a shift toward protecting domestic workers, but sustained monitoring is needed to balance economic needs with fair opportunities for Canadians. Policymakers should enhance enforcement of hiring priorities and invest in youth training to mitigate these impacts.