Canada Tightens Caps on International Students and Work Permits: What You Need to Know

In a major policy shift, the Canadian government has introduced new regulations to limit the number of international students and tighten eligibility for work permits. Spearheaded by Prime Minister Justin Trudeau, these changes aim to manage the rapid growth of temporary residents and reduce pressure on housing and public services.

Key Changes

• Reduction in Study Permits: Starting in 2025, the issuance of international student permits will be reduced by 10%, maintaining this limit through 2026. This represents a 36% decline from 2023 levels, with only 437,000 permits projected to be issued in 2025.
• Provincial Attestation Letter (PAL): Master’s and PhD students will now need a Provincial Attestation Letter, which is already required for many college and undergraduate applicants. This step will verify the genuineness of applications and help stabilize the issuance of study permits.
• Changes to Post-Graduation Work Permit (PGWP) Eligibility: Applicants must meet higher language benchmarks, with university graduates requiring a Canadian Language Benchmark (CLB) score of 7, and college graduates needing a CLB of 5. This change is expected to reduce the number of PGWPs issued by 175,000 over the next three years.
• Spousal Open Work Permits: These permits will now be limited to spouses of master’s degree students enrolled in programs lasting at least 16 months. Spousal permits will also be restricted to those married to Canadian citizens, permanent residents, or individuals employed in critical sectors.

Impact on International Students

• Increased Competition: As study permits are reduced, international students will face stiffer competition for spots at Canadian institutions. Academic and language proficiency standards may rise as a result.
• Stricter Language Requirements: The heightened language requirements for PGWPs will push students to invest more in language training, adding to the cost and preparation needed to study in Canada.
• Reduced Work Opportunities: Tighter regulations around PGWP and spousal work permits will limit job opportunities, making it harder for students and their families to gain Canadian work experience or support themselves financially.
• Potential Shift in Study Destinations: These restrictions could push students to consider alternative destinations with more favorable immigration and work policies, impacting the diversity of Canadian campuses.

Rationale Behind the Changes

The Canadian government cites sustainability concerns as the main driver of these reforms. With rapid population growth adding three million people in the past three years, the strain on housing and public services has intensified. Immigration Minister Marc Miller noted that these steps are crucial to preserving the integrity of Canada’s immigration system: “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 Implications

These changes are set to reshape the landscape for international students and temporary workers in Canada. Institutions may experience a drop in applications, and the job market for international workers is likely to become more competitive. However, the government believes these measures will lead to a more balanced and sustainable system, benefiting both newcomers and Canadian residents.

Source: Economic Times