Canada to raise student work limit, but will 24 hrs be enough for Indians?

The Immigration, Refugees and Citizenship Canada (IRCC) announced on Wednesday that international students will soon be able to work up to 24 hours per week off-campus. This new rule is set to take effect by this autumn, increasing the previous cap of 20 hours per week during academic sessions. Once in place, international students will be allowed to work 24 hours a week while classes are in session, with full-time work permitted during scheduled breaks, such as summer and winter holidays.

“Eligible full-time students working off-campus can work 20 hours per week while class is in session. A new rule to increase to 24 hours per week is expected to take effect later this fall, as announced earlier this year,” the IRCC posted on X (formerly Twitter).

But will Indians gain from the 4-hour increase?

Indian students, who make up a large share of Canada's international student population, may find the cap less than satisfactory. Neeva Phatarphekar, an international student in Toronto, shared her concern with Canadian Broadcasting Corporation (CBC), a national public broadcaster, that the 24-hour cap could make it more difficult to meet expenses. Phatarphekar, who had been working up to 40 hours a week, said, “That’s going to be hard with the rent in Toronto, groceries, and other costs. I have to think about all of that,” reflecting the financial pressures faced by many international students in Canada.

Varun Singh, managing director of XIPHIAS Immigration, also highlighted the potential challenges Indian students might face. “The new rule could massively reduce the earning potential of Indian students, who rely on part-time jobs to offset their expenses. It may even discourage some students from pursuing studies in Canada, especially those from lower-income backgrounds,” Singh told Business Standard.

But what about academics?

Vijay Sapps, a user on X, backed Canada's move. He commented, “That is still 24 hours more than what it was when I came to Canada as a student. We need to go back to the good old days of quality over quantity,” emphasising that the focus should be on academics rather than working long hours.

Moshe Lander, an economics professor at Concordia University in Montreal, voiced similar concerns about the potential impact of the new work limit on students’ studies. “As an instructor, I’m a little doubtful that 24 hours still means that you can focus on your courses. What student is not going to choose money over studying?” Lander told CBC, questioning if students can balance work and their academic commitments effectively with the extended hours.

Lander further suggested that the increased work limit might devalue education, as students may prioritise earning money over focusing on their studies. “It devalues the degrees a little bit,” he added.

Notably, in the early 2000s, international students in Canada were not allowed to work off-campus while studying, unless they had special permission or were part of specific co-op or internship programmes.

The option to work off-campus part-time (up to 20 hours per week) was officially introduced in 2006.

What’s the government’s reasoning behind the new rule?

During the pandemic, Canada lifted the 20-hour cap, allowing international students to work without restrictions. However, the IRCC reinstated a cap, citing concerns about students' academic outcomes.

In a statement released in April, the IRCC said, “Research has shown that academic outcomes suffer the more a student works while studying. This change strikes a balance between allowing students to work while maintaining their academic performance.”

The decision also took into account policies from other countries, such as the UK and Australia, where international students face similar work hour limits. Immigration Minister Marc Miller stated, “Canada’s rules need to be aligned, or we will find our programmes attracting more and more applicants whose primary intent is to work and not study.”

Inflation: Another challenge for students

Along with the work cap, Indian students in Canada are dealing with rising inflation. As of August 2024, Canada’s inflation rate stood at 3.3%, down from the four-decade high of 8.1% in June 2022, according to official data. Despite the decrease, living costs remain elevated, particularly in areas like housing and food.

Food prices: In June 2024, food prices increased by 2.8% year-on-year, with fresh vegetables rising by 3.8%. This continues to strain budgets for students, who are already managing tight finances.

Housing costs: Rent and shelter costs rose by 5.7% year-on-year in July 2024, with major cities like Toronto and Vancouver being particularly affected.

Fuel and energy: Gasoline prices increased by 1.9% in July, while electricity prices fell slightly by 0.8%. The fluctuation in energy prices has left students uncertain about how to manage their expenses.

Prime Minister Justin Trudeau’s government is also under pressure from the public due to the rising cost of living. This affects not only Canadian citizens but also international students, who are struggling to find affordable housing and cover their living costs. In response, the Canadian government imposed a cap on the number of international student visas, projecting fewer than 300,000 permits this year compared to approximately 437,000 last year.

However, with provisions like part-time work, students can better manage their expenses. The minimum wage (varies from province to province) per hour in Canada is:

Ontario: As of 2024, the minimum wage is CAD 16.55 per hour and is set to increase to CAD 17.20 per hour on October 1, 2024.

Alberta: The minimum wage remains at CAD 15.00 per hour.

British Columbia: The minimum wage is CAD 17.40 per hour, effective from June 1, 2024.

Manitoba: The minimum wage is CAD 15.30 per hour, with a planned increase to CAD 15.80 in October 2024.

Nunavut: The highest minimum wage in the country, at CAD 19.00 per hour as of January 1, 2024.