Canada has recently introduced significant policy changes aimed at curbing immigration, citing economic pressures and infrastructure challenges. These changes are poised to affect international students, particularly Indians looking to study abroad.
Reduced International Student Permits
Canadian Prime Minister Justin Trudeau announced alterations in the international work permit system to lower the influx of immigrant workers. According to a post on X on September 19, Trudeau revealed that Canada will issue 35% fewer international student permits this year, with an additional 10% reduction planned for next year.
“We’re reducing the number of low-wage, temporary foreign workers and shortening the duration of their work terms,” Trudeau commented, emphasizing the need for businesses to invest in Canadian labour.
Reasons Behind the Changes
Canada issued approximately 485,000 student permits in 2024 compared to over 500,000 in 2023. This number is expected to decline further to 437,000 by 2025. The policy changes are largely driven by the increasing strain on cities’ infrastructure, soaring rent prices, and a surge in immigration.
Trudeau highlighted concerns about misuse of the system by some students who applied for asylum after arriving in Canada. “Immigration is an advantage for our economy — but when bad actors abuse the system and take advantage of students, we crack down,” he noted.
The visa-issuance process has been revamped to detect fraudulent asylum claims more effectively. A proposed reduction in temporary residents—from 6.5% of Canada’s population to 5%—will be detailed in the upcoming 2025-2027 immigration levels plan set for release by November 1.
New Restrictions on PGWP
Postgraduate Work Permits (PGWPs) for Canadian graduate students typically last three years. However, new regulations aim to cut down these permits by 175,000 over the next three years through stricter guidelines.
Additionally, spouse work permits will be reduced by 50,000 and granted only if one’s partner is enrolled in a Master’s program lasting at least 16 months.
Language Proficiency Requirements
From November 1 onward, students applying for PGWPs must pass the Canadian Language Benchmark (CLB) test with a score of at least 7 for university undergraduates and 5 for college undergraduates. Previously, this was only required for Permanent Residency (PR) applications.
Challenges Faced by Students
Most surveys in Canada show that students entering master’s and doctoral programs are now required to obtain a Provincial Attestation Letter (PAL), a requirement that was previously applicable only to undergraduate students. This shift has introduced various challenges. Many diploma holders who completed their studies in August now face uncertainty about their future. Graduates in fields such as business administration and IT may discover that their qualifications no longer match the long-term demands of Canada’s job market.
Canadian colleges offering such courses face the risk of decreased international student enrollment unless they introduce new programs that meet evolving job market needs. States in India like Punjab and Gujarat-based consultants have observed that students skilled in areas experiencing labour shortages, including plumbing, refrigeration and air conditioning/heating, mechanics, AI and machine learning, carpentry, health, and nursing sectors, have promising opportunities to obtain Post-Graduation Work Permit (PGWP).
Exploring Alternatives
Data from Canada’s Immigration, Refugees and Citizenship Canada (IRCC) reveals a substantial increase in international student work permit holders from around 490,000 in 2017 to over 1 million in 2023. Indian and Chinese students together accounted for more than half of all international students in each of the past eight years.
Saurabh Arora, CEO of University Living—a student accommodation service—believes that Canada’s decision to reduce the intake of immigrants reflects its aim to align its international education policy with its long-term economic objectives.
