Canada’s Immigration Minister, Marc Miller, has confirmed that the cap on international students will remain in place.
Immigration, Refugees, and Citizenship Canada (IRCC) plans to issue only 437,000 study permits in 2025, representing a 10% decrease from the 2024 target of 485,000. This limit is expected to stabilize for 2026. Over the next few years, the department anticipates issuing 300,000 fewer study permits as a result of these restrictions.
This is one of several updates the minister shared about changes to Canada’s international student program.
“The reality is that not everyone who wants to come to Canada will be able to—just like not everyone who wants to stay in Canada will be able to,” Miller stated.
He emphasized the importance of maintaining a well-managed and sustainable immigration system, adding, “We are committed to preserving its integrity and will take every step necessary to ensure newcomers are set up for success.”
Provincial Attestation Letter Now Required for Master’s and PhD Students
Master’s and doctoral students are now subject to the updated cap and will no longer be exempt from obtaining a Provincial Attestation Letter (PAL). The department has announced that around 12% of allocation spaces will be reserved for these students, acknowledging their valuable contributions to the Canadian labour market.
Originally introduced earlier this year for college and undergraduate students, PALs assist IRCC in verifying the legitimacy of study permit applications and managing the volume of permits issued.
Updates to PGWP Eligibility Criteria
Further adjustments have been introduced to the eligibility criteria for the Post-Graduation Work Permit (PGWP). Starting November 1, applicants will need to meet specific language benchmarks: university graduates must achieve a Canadian Language Benchmark (CLB) score of 7, while college graduates will need a CLB score of 5.
Minister Miller anticipates that these changes will lead to a reduction of 175,000 PGWPs issued over the next three years.
New Restrictions on Spousal Open Work Permits
Later this year, IRCC will tighten eligibility for spousal work permits, restricting them to spouses of master’s degree students enrolled in programs lasting at least 16 months. This change is projected to reduce the number of spousal work permits by 50,000 over the next three years.
In a separate move, Spousal Open Work Permits will also be limited to spouses of Canadians or permanent residents working in critical sectors, further narrowing eligibility criteria.
Implications for the Temporary Foreign Worker Program
Since April 2023, Canada’s unemployment rate has increased by 1.5 percentage points, rising from 6.4% to 6.6%. As of August 2024, there are 1.5 million unemployed individuals, marking a 4.3% increase of 60,000 from the previous month.
To address this, new measures have been introduced to reduce the number of temporary residents in Canada holding work permits in the near term.
Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, emphasized that the Temporary Foreign Worker Program (TFWP) should be a last resort, not intended to replace Canadian workers or drive down wages. He also highlighted that immigration is crucial for economic growth, with 99% of Canada’s economic expansion currently reliant on it, and this is projected to reach 100% by 2032.
Adjustments to Temporary and Permanent Resident Levels in Canada
This year has brought substantial changes to Canada’s immigration system, with several new measures introduced:
In January, IRCC implemented its first-ever cap on study permits, initially set as a temporary policy through the end of 2025. This cap included allocations for each province and introduced the Provincial Attestation Letter (PAL) system. Alongside this, restrictions were placed on Post-Graduation Work Permit (PGWP) eligibility, excluding college programs with “curriculum licensing agreements,” and spousal work permits were limited to the spouses of master’s and PhD students, with some exceptions.
In March, Minister Miller announced that the Immigration Levels Plan for 2025-2027 will for the first time include temporary resident levels, aiming to reduce the number of temporary residents on study or work permits.
Additional measures to limit temporary residents include:
- Ending the COVID-era policy that allowed some visitors to apply for job-supported work permits from within Canada.
- Pausing the processing of Labour Market Impact Assessments (LMIAs) for low-wage jobs in Census Metropolitan Areas (CMAs) with an unemployment rate of 6% or higher.
- Considering significant changes to PGWP issuance, linking it to educational programs that align with in-demand sectors of the Canadian economy.
Minister Miller has also indicated openness to revising permanent immigration levels, emphasizing that any changes would be substantial rather than merely cosmetic. More details on this are expected in the coming weeks.
