Seconded, I don't think it has anything to do with Canada's social programs. And it's pretty easy to fire someone, you just have to give them a small amount of severance depending on how long they've worked for you. I think the biggest factor is that it's much, much easier to import workers from Europe and Asia. I worked at a major tech company in Canada and the office was 50%+ foreign nationals who wouldn't have had authorization to work in the US anyway. A lot of the Canadian citizens eventually left to take 2-3x salaries in the States (there is a visa category that makes it really easy for Canadian engineers to work in the US.)