Ottawa’s New Plan: Capping Foreign Student Intake by 2025

Canada’s government has unveiled new rules for international students, aiming to better manage the country’s temporary resident population. Immigration Minister Marc Miller and Labour Minister Randy Boissonnault announced fewer study permits will be issued and stricter work permit rules for students’ spouses will be implemented. These changes are designed to address concerns about the sustainability of current international student numbers.

The new policies have sparked debate about their potential effects on education, housing, and the job market in Canada. As the country adapts to these changes, the government stresses the importance of finding a balance that serves both international students and Canadian society.

Canada Announces Further Reductions in International Student Permits

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The federal government revealed plans to cut international student permits for 2025 and 2026. This decision was part of a national cap on international student intake, introduced in January. The government aimed to reduce the number of temporary residents in Canada from 6.5% to 5% of the total population. This move signaled a significant shift in Canada’s approach to international education.

Study Permit Numbers Set to Decrease

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Canada planned to issue 437,000 study permits in 2025, down 10% from the 485,000 permits issued in 2024. This number was set to remain the same in 2026, stabilizing intake levels. The reduction represented a significant change in the country’s international education landscape. Immigration Minister Marc Miller emphasized that not everyone who wanted to come to Canada would be able to do so.

Trudeau Addresses System Abuse Concerns

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Prime Minister Justin Trudeau spoke out about the necessity of these measures. He stated they were needed to crack down on “bad actors” who abuse the system. Trudeau highlighted the significant reduction in international student permits, with a 35% decrease in the current year. He emphasized that while immigration benefits the economy, it was crucial to address system exploitation.

New Limitations on Spousal Work Permits

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The government announced further restrictions on open work permits for spouses of international students. Work permit eligibility for spouses was limited to those of master’s degree students in programs lasting at least 16 months. This change aimed to tighten regulations around work permits associated with student visas. The government sought to balance educational opportunities with labor market needs.

Changes Affect Spouses of Temporary Foreign Workers

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Spouses of foreign workers also faced new restrictions on work permit eligibility. The government limited eligibility to those whose partners worked in management, professional occupations, or sectors with labor shortages. Labour Minister Randy Boissonnault explained that these changes aligned with the Temporary Foreign Worker Program’s original purpose. The aim was to address labor market shortages when qualified Canadians were unavailable.

Cap Application Differs Across Provinces

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The national cap on international students was set to be applied differently across provinces. Provinces that had seen “the most unsustainable growth” in international student intake faced larger cuts. The government aimed to implement the cap fairly by allocating spaces based on provincial populations. This approach meant some provinces would experience more significant reductions than others.

Increased Proof of Funds for Study Permits

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The government had previously increased the financial requirements for international students. The amount students needed to prove they had in their bank accounts doubled from $10,000 to $20,635. This increase was in addition to the tuition fees international students paid. The change aimed to ensure students could meet the cost of living in Canada during their studies.

Projected Decrease in Student Rental Demand

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An RBC economist’s report predicted a decline in rental demand from international students. The report estimated that the increase in rental units demanded by international students could fall by roughly half in 2024. This change was expected to be most noticeable in Ontario and British Columbia. These provinces had seen international student enrollment outweigh their share of the Canadian population.

Potential Stabilization in Key Provinces

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The report suggested that the number of international students in Ontario and British Columbia might remain relatively flat in 2024. This trend was expected to effectively stall new rental demand from this group. The cap on international students was seen as a factor that could influence housing markets in these provinces. Experts anticipated potential shifts in rental prices and availability.

Concerns Raised About Migrant Worker Rights

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The Migrant Workers Alliance for Change (MWAC) expressed concerns about the announcement. They argued that reducing migrant numbers would not address exploitation issues. The group advocated for equal rights and permanent resident status for all migrant workers. MWAC emphasized the need to focus on human rights rather than just numbers.

Temporary Measures with a Two-Year Timeframe

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Immigration Minister Marc Miller described the international student cap as a temporary measure. He stated that these restrictions were planned to stay in place for two years. The government presented this as part of a broader strategy to manage immigration levels. Officials emphasized the need to reassess the situation after this period.

Colleges and Universities Adjust to New Reality

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The cap on international students was expected to affect educational institutions across Canada. Universities and colleges that had relied heavily on international student enrollment faced potential financial challenges. These institutions began to reassess their strategies and budgets. Many looked for ways to maintain educational quality while adapting to reduced international student numbers.

Balancing Education and Workforce Needs

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The government’s decisions reflected an attempt to balance educational opportunities with labor market demands. Officials emphasized the need to ensure that international education is aligned with Canada’s workforce needs. The changes aimed to create a more sustainable model for international education. The government sought to address concerns about the impact of international students on the job market.

Assessing the Financial Impact of Reduced Student Numbers

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Economists began to analyze the potential economic impact of reduced international student numbers. International students have been a significant source of revenue for many communities. The changes were expected to affect various sectors, including housing, retail, and services. Experts started to project how these shifts might influence local and national economies.

Monitoring and Adjusting Policies

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The government commits to monitoring the effects of these new policies closely. Officials indicate a willingness to make adjustments based on observed outcomes. The focus remains on creating a sustainable and beneficial international education system. Stakeholders across various sectors are preparing to adapt to this new landscape in Canadian international education.

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Joy Fadogba

Joy Fadogba is a passionate writer who has spent over a decade exploring and writing about lifestyle topics. With a fondness for quotes and the little details that make life extraordinary, she writes content that not only entertains but also enriches the lives of those who read her blogs. You can find her writing on Mastermind Quotes and on her personal blog. When she is not writing, she is reading a book, gardening, or travelling.