“The cap on international students is here to stay,” stated Canada's Immigration Minister, Marc Miller.
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 a goal of stabilizing the intake cap for 2026.
As a result, IRCC anticipates that there will be 300,000 fewer study permits granted to international students over the coming years.
This is just one of several updates made by Canada’s Immigration Minister, Marc Miller, regarding ongoing changes to the international student program.
“The reality is that not everyone who wants to come to Canada will be able to—just as not everyone who wants to stay will,” Miller stated.
He emphasized the importance of maintaining the integrity of Canada’s immigration system, ensuring it is well-managed and sustainable. “As we move forward, we will do everything necessary to achieve this goal and set newcomers up for success,” he added.
New Requirement for Master’s and PhD Students
The updated cap will now include master’s and doctoral students, who are no longer exempt from obtaining a Provincial Attestation Letter (PAL). The department plans to reserve approximately 12% of allocation spaces for these students “in recognition of the benefits they bring to the Canadian labor market.”
PALs were introduced earlier this year for many college and undergraduate students to help IRCC verify the authenticity of applications and stabilize the number of study permits issued.
Changes to PGWP Eligibility
In addition, the eligibility criteria for the Post-Graduation Work Permit (PGWP) have been revised. Starting November 1, applicants will need to demonstrate a Canadian Language Benchmark (CLB) score of 7 for university graduates and a CLB of 5 for college graduates. Miller anticipates that this will lead to 175,000 fewer PGWPs issued over the next three years.
Limits on Spousal Open Work Permits
IRCC will also restrict work permit eligibility for spouses of master’s degree students to those enrolled in programs lasting at least 16 months. This change is expected to result in 50,000 fewer spousal work permits issued over the next three years. Additionally, Spousal Open Work Permits will be limited to spouses of Canadians or permanent residents employed in critical sectors.
Impact on the Temporary Foreign Worker Program
Canada’s unemployment rate has been rising since April 2023, increasing from 6.4% to 6.6%. In August 2024, there were 1.5 million unemployed individuals, marking an increase of 60,000 (+4.3%) from the previous month.
The measures announced aim to reduce the number of temporary residents on work permits in the near future. Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, echoed Miller’s remarks, emphasizing that the Temporary Foreign Worker Program (TFWP) should be a last resort and should not replace Canadian workers or suppress wages. However, he noted that 99% of Canada’s economic growth relies on immigration, a figure expected to rise to 100% by 2032.
Changes to Temporary and Permanent Resident Levels
This year has seen significant revisions to Canada’s immigration system. In January, IRCC implemented its first-ever cap on study permits, initially set as a temporary policy through 2025. Each provincial government was assigned study permit allocations as part of this cap, which also introduced the PAL system.
The announcement included further restrictions on PGWP eligibility and limited Spousal Work Permits 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 include temporary resident levels for the first time, as the department seeks to reduce the number of temporary residents on study or work permits.
Other steps taken to reduce temporary residents include:
- Ending the COVID-era policy allowing some visitors to apply for job-supported work permits from within Canada.
- Pausing the processing of Labour Market Impact Assessments (LMIAs) in the low-wage stream of the TFWP for jobs in regions 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 a willingness to explore options for adjusting permanent immigration levels, emphasizing the importance of avoiding an “overcorrection.” Significant changes are expected in the coming weeks.
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