Canada’s Immigration Minister Marc Miller has announced a series of important updates impacting international students, extending the current cap on foreign enrolment through 2025 and 2026, along with several changes to post-study work eligibility. These measures aim to reduce the number of temporary residents and ensure better management of Canada’s immigration system in response to growing concerns over housing, healthcare, and labor market pressures.
Enrolment Cap Extended and Expanded
The enrolment cap, first introduced in 2024, will now extend through 2025 and 2026, with a further reduction of 10% from the 2024 level. This is part of a broader strategy to reduce the number of temporary residents in Canada from 6.5% of the total population to 5% by 2026. The cap, which was initially focused on undergraduate programs, now includes master’s and doctoral students starting in 2025. This change marks a significant shift, as graduate students were previously exempt from these limits.
The cap is projected to reduce the number of new study permits issued from approximately 485,000 in 2024 to around 437,000 annually in 2025 and 2026. According to Minister Miller, this policy is part of a broader effort to respond to public concerns regarding the rising number of temporary migrants and its impact on the availability of affordable housing and healthcare services in Canada.
Dr. Chad Gaffield, CEO of U15 Canada, expressed concern over this development, emphasizing that limiting international graduate students could undermine Canada’s ability to attract top researchers and innovators. He warned that these changes may cause Canada to lose out on talented individuals who could contribute significantly to areas like technological innovation, healthcare solutions, and social challenges.
Post-Graduation Work Permit (PGWP) Changes
One of the most significant changes announced is the revision of eligibility for the Post-Graduation Work Permit (PGWP), which allows international students to gain Canadian work experience after completing their studies. Starting from November 1, 2024, only graduates from university degree programs will remain eligible for a three-year PGWP.
Graduates from public college programs, who were previously eligible for the same work permit, will now only qualify if their field of study aligns with high-demand labor market areas designated by each province or territory. This new rule has sparked concerns among Canadian colleges and institutions. CICan, the association representing Canada’s public colleges, noted that the change creates a disconnect between local labor market needs and national immigration policies, potentially harming local economies and industries that rely on skilled international graduates.
Marketa Evans, president and CEO of Colleges Ontario, echoed these concerns, warning that the new restrictions would result in a projected CDN$1.7 billion revenue loss for Ontario’s public colleges over the next two years. She also highlighted the vital role college graduates play in addressing critical labor shortages in sectors such as construction, healthcare, and advanced manufacturing, which could be severely impacted by the decline in international student enrolment.
Spousal Work Permit Restrictions
Another change that will take effect later this year affects the eligibility of spouses or partners of international students for open work permits. Previously, spouses of graduate-level students could obtain an open work permit regardless of the student’s program length. Under the new rules, only spouses of master’s degree students enrolled in programs lasting at least 16 months will be eligible for spousal work permits. This restriction adds further limitations for international students and their families, affecting their ability to stay and work in Canada during the student’s study period.
New Language Proficiency Requirement for PGWP Applicants
To further align Canada’s immigration system with labor market demands, all applicants for the PGWP will be required to demonstrate a minimum language proficiency in either French or English, starting from November 1, 2024. This requirement aims to increase the likelihood that international graduates can successfully transition to permanent residency and contribute to the Canadian economy.
For university graduates, the minimum required language proficiency will be set at Canadian Language Benchmark (CLB) level 7, while for college graduates, the requirement will be CLB 5. This change is designed to ensure that graduates possess the necessary language skills to integrate into the Canadian workforce and adapt to the country’s economic needs.
Addressing Public Concerns Over Temporary Migration
The measures introduced build on policies implemented in early 2024, which included a national cap on new study permits and the removal of spousal work permits for students in non-graduate or professional programs. The government has faced growing public pressure to manage the influx of international students, with many linking the rise in temporary migrants to the housing crisis and strains on healthcare services. Prime Minister Justin Trudeau’s government, with a federal election looming in 2025, has been under pressure to address these issues, which are affecting public approval ratings.
In a press release, Minister Miller acknowledged the complexity of balancing the benefits that international students bring to Canada with the challenges posed by their increasing numbers. He stated, “Our immigration system must preserve its integrity, be well managed, and sustainable. 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.”
Long-Term Impact and Industry Concerns
While these changes aim to address immediate challenges, stakeholders in the education and immigration sectors have raised concerns about the long-term impacts. There is fear that Canada could lose its appeal to top international talent, particularly at the graduate level, where many students contribute to research, innovation, and economic development.
Additionally, public colleges may face significant financial losses and be forced to scale back programs, affecting both international and domestic students. The alignment of immigration policies with national labor market needs may also lead to shortages in specific sectors that rely on college-trained graduates.
As Canada continues to adjust its immigration policies, these reforms signal a shift toward more selective criteria for temporary migrants, with a focus on quality over quantity. While they aim to address public concerns and ensure that Canada’s immigration system remains sustainable, the long-term effects on international student enrolment and the broader economy remain to be seen.
