Canada’s Immigration Minister, Marc Miller, stated that “the international student cap is here to stay.” Specifically, Immigration, Refugees, and Citizenship Canada (IRCC) plans to issue only 437,000 study permits in 2025. This figure represents a 10% decrease from the 2024 target of 485,000 new permits, with the intention to stabilize the cap for 2026. As a result, IRCC anticipates that there will be 300,000 fewer study permits granted to international students in the coming years
This announcement is part of a series of updates from the minister about ongoing reforms to Canada’s international student program.
Miller stated, “The truth is that not everyone who wishes to come to Canada will be able to—just as not everyone who wants to remain here can stay.”
He emphasized, “Our immigration system must maintain its integrity and be managed sustainably. Moving forward, we are committed to doing everything necessary to achieve that goal and ensure newcomers succeed.”
Master’s and PhD students are now required to obtain a Provincial Attestation Letter.
The new cap will now apply to master’s and doctoral students, who will also need to secure a Provincial Attestation Letter (PAL).
The department plans to allocate about 12% of available spaces for these students “in acknowledgment of the contributions they make to the Canadian labor market.”
PALs were implemented earlier this year for various college and undergraduate students to assist IRCC in verifying the authenticity of their applications and to stabilize the issuance of study permits.
Modifications to the eligibility criteria for the Post-Graduation Work Permit (PGWP)
Furthermore, the eligibility criteria for the Post-Graduation Work Permit (PGWP) have been updated. Starting November 1, applicants will need to show a Canadian Language Benchmark (CLB) score of 7 for university graduates and a CLB of 5 for college graduates.
Miller anticipates that this change will lead to 175,000 fewer PGWPs being granted in the next three years.
Restrictions on Spousal Open Work Permits
IRCC is also imposing restrictions on work permit eligibility for spouses of master’s degree students, effective later this year. Only those whose programs last at least 16 months will qualify, which is projected to lead to 50,000 fewer spousal work permits issued over the next three years.
Additionally, Spousal Open Work Permits will be restricted to spouses of Canadians or permanent residents working in essential sectors, independent of the international student program.
Effects on the Temporary Foreign Worker Program
Canada’s unemployment rate has been increasing since April 2023, climbing 1.5 percentage points during that time. According to Employment and Social Development Canada (ESDC), the overall unemployment rate has risen from 6.4% to 6.6%. As of August 2024, there were 1.5 million unemployed individuals, marking an increase of 60,000 (+4.3%) from the previous month.
The measures announced today aim to reduce the number of temporary residents in Canada holding work permits in the near future.
Randy Boissonnault, the Minister of Employment, Workforce Development and Official Languages, spoke alongside Minister Miller, reiterating the purpose of the Temporary Foreign Worker Program (TFWP). He emphasized that the TFWP should be viewed as a last resort and should not be used to displace Canadian workers or drive down their wages.
Despite this, Minister Boissonnault highlighted that 99% of Canada’s economic growth relies on immigration, a figure expected to reach 100% by 2032.
Adjustments to Temporary and Permanent Resident Levels in Canada
This year has seen significant changes to Canada’s immigration system, with several new measures introduced.
In January, IRCC implemented the first-ever cap on study permits, initially designed as a temporary policy lasting until the end of 2025. As part of this cap, each province received specific study permit allocations. This new system also introduced the Provincial Attestation Letter (PAL).
The announcement of the study permit cap was accompanied by tighter restrictions on Post-Graduation Work Permit (PGWP) eligibility, excluding college students with “curriculum licensing agreements,” and a new limitation on Spousal Work Permits, which will now only apply to spouses of master’s and PhD students (with some exceptions).
In March, Minister Miller announced that the Immigration Levels Plan for 2025-2027 would, for the first time, include levels for temporary residents, reflecting a goal to decrease the number of individuals on study or work permits.
Canada has also taken additional steps to limit the number of temporary residents, including:
- Ending the COVID-era policy that allowed some visitors to apply for a job-supported work permit from within Canada.
- Suspending the processing of Labour Market Impact Assessments (LMIAs) in the low-wage stream of the Temporary Foreign Worker Program (TFWP) for positions in areas with an unemployment rate of 6% or higher.
- Considering significant changes to the issuance of PGWPs for international graduates, linking these permits to educational programs that prepare graduates for in-demand sectors of the Canadian economy.
Minister Miller has indicated his openness to exploring adjustments to permanent immigration levels as well. He emphasized the importance of avoiding an “overcorrection” in these levels, stating that any changes he is contemplating would be “significant” rather than merely “cosmetic.” Further details are expected in the coming weeks.
