Canada further reduces study and work permits for foreign nationals

Under the new rules, the number of international study permits will be capped at 437,000 in 2025, as opposed to 509,390 permits granted in 2023

Canada has announced further cuts to the number of study permits for foreign students and introduced stricter criteria for work permits as part of efforts to limit temporary residents. The government made the announcement on Wednesday, amid increasing public debate on the issue.

Under the new rules, the number of international study permits will be capped at 437,000 in 2025. In comparison, Canada granted 509,390 permits in 2023, and 175,920 in just the first seven months of 2024. The changes also restrict work permits for spouses of certain students and temporary foreign workers.

Political context ahead of the election

The decision follows a by-election defeat for Prime Minister Justin Trudeau’s Liberal government, which is trailing in opinion polls. With a federal election scheduled no later than October 2025, the move is seen as part of efforts to address concerns around the rising number of international students and foreign workers.

In response to a growing number of refugee claims, the government has committed to reviewing visa integrity processes. It will focus on ensuring that immigration officers have better tools to identify fraudulent applications and reduce non-genuine visitors.

“The reality is that not everyone who wants to come to Canada will be able to, and not everyone who wants to stay in Canada will be able to,” said Immigration Minister Marc Miller.

Reducing temporary residents

The government has previously set a goal of reducing the proportion of temporary residents to 5 per cent of the population, down from 6.8 per cent in April. Temporary residents, including migrants, have been linked to issues such as the lack of affordable housing and rising costs of living, despite a slowdown in inflation to 2 per cent in August.

While some immigrant advocates and economists argue that blaming migrants for economic problems is an oversimplification, public opinion is shifting. A growing number of Canadians believe that the country is admitting too many immigrants, with anti-immigrant sentiment and incidents on the rise.

Reversals of previous immigration expansions

After years of increasing temporary residents, the federal government is now scaling back. In January, a two-year cap was placed on the number of international students, with approvals expected to nearly halve this year. Additionally, earlier in the month, the government reversed 2022 expansions to the temporary foreign worker program, particularly limiting low-wage workers in high-unemployment areas and certain sectors.

Canada’s troubling jobless rate

Canada’s unemployment rate increased to 6.6 per cent in August, reaching its highest level in over seven years, excluding the pandemic-affected years of 2020 and 2021.

In August, the Canadian economy added a net 22,100 jobs, with all gains coming from part-time employment, according to Statistics Canada. This figure fell short of analysts’ expectations, as a Reuters poll had predicted a jobless rate of 6.5 per cent and 25,000 new jobs for the month.

Since January 2023, the unemployment rate has risen by 1.6 percentage points, which has prompted some economists to call for significant interest rate cuts to stimulate growth. The most pronounced rise in unemployment has been among young people aged 15 to 24, with their jobless rate reaching its highest level in eight years this summer.

Canada's economy is slowing due to high interest rates, with earlier growth driven by population increases rather than economic activity. As GDP lags behind population growth, unemployment is rising, sparking recession fears.

[With inputs from agencies]