Canada announces updates for foreign enrolment cap and post-study work rules

Canadian Immigration Minister Marc Miller announced today several new measures affecting international students in Canada. He stated, "The measures we have taken up until now are working,” but continued that additional steps are necessary to achieve a government target to achieve a “decrease in the number of temporary residents from 6.5% of Canada’s total population down to 5% by 2026."

Mr Miller said: “When you look at the growth we have seen in people who are temporary residents of Canada, that is something that has grown almost exponentially over the last few years."

In a press release, he continued:

“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. We are taking action to strengthen our temporary residence programs and roll out a more comprehensive immigration plan to meet the demands of today’s changing landscape. Our immigration system must preserve its integrity, and be well managed and sustainable. And as we look forward, we will do everything it takes to achieve that goal and set newcomers up for success.”

Background

The new measures build on policies in place since January 2024. Those policies include a national cap on new study permits for 2024 that the government projected would result in a 35% decrease in the number of new permits issued this year compared with 2023. The decrease is now tracking to be much more substantial.

Other policies that have been active since January 2024 include the removal of spousal work permits other than for students in graduate or professional programmes and the removal of PGWP eligibility for graduates of Ontario’s public-private colleges. Since January, students have also had to supply a Provincial Attestation Letter (PAL) with their study permit application to prove they have been admitted to an approved programme and institution and to ensure institutions comply with the number of study spaces they have been allotted through the cap.

The intention of the original policies was to respond to growing public frustration with an affordable housing and healthcare capacity crisis which has been linked by some to a surge in the number of temporary migrants entering Canada needing accommodation. That issue is weakening the approval rating of Prime Minister Justin Trudeau and his Liberal party, and with a federal election looming in 2025.

An ApplyBoard analysis based on January-June 2024 data found that study permit applications and issuances are trending much below the projection of a 35% decrease. ApplyBoard’s projection for full-year 2024 is a 50% decrease for capped post-secondary programmes (e.g., undergraduate programmes) and a 24% reduction in study permits for cap-exempt programmes (e.g. graduate-level courses), respectively.

Setting the cap for the next two years

For anyone wondering how long the cap would remain in place, Mr Miller ended the guessing game today, saying: "The cap is here to stay." The cap will be set at a stable level for 2025 and 2026 and will be set at 10% below the 2024 cap level. The idea is to reduce the cap ceiling from about 485,000 issued study permits in 2024 to 437,000 study permits issued in both 2025 and 2026.

Graduate students included in the cap

Mr Miller said his department is now "carving in" master’s and PhD students to the cap in 2025 and 2026. In other words, international student enrolments at the graduate level will now also count against the cap total for each year, whereas they were previously exempt. Mr Miller said:

"The 2025–2026 study permit intake cap will include master’s and doctoral students who will now have to submit a provincial or territorial attestation letter. We will be reserving approximately 12% of allocation spaces for these students in recognition of the benefits they bring to the Canadian labour market."

Responding to this news, Dr. Chad Gaffield, CEO of U15 Canada said:

“Canadians are rightly concerned about the unrestricted increases in international students and the impact this was having on housing and healthcare, but reforms must not come at the expense of our ability to welcome top talent who have so much to offer Canada.

This government has repeatedly insisted that it is seeking to return to a system that is more-quality oriented. However, by now also capping graduate students and researchers, today’s changes fail to recognize responsible institutions and add additional burdens for the top students who want to contribute to Canada.

The uncertainty caused by immigration reforms has created significant disruption. Now the decision to cap graduate students means that Canada may lose out on some of the very best minds from around the world. These are top researchers who want to come to Canada to study and help create innovative new technologies, help develop new health treatments or help solve pressing social challenges. We are concerned that today’s announcement signals again to the best and brightest that they should consider looking elsewhere to further their careers and advance their ideas."

College graduates will face new limits on post-study work rights

Degree graduates will remain eligible for PGWP of up to three years. However, after 1 November 2024, international students graduating from public college programmes will no longer be eligible for a three-year PGWP unless their work is linked to areas of high labour market demand.

CICan, the association representing Canada's public colleges and institutes, issued this statement pointing out the potential damage to local communities:

"Today’s announcement removes open eligibility for the Post Graduate Work Permit (PGWP) program only for students going through Canada’s public colleges. It forces colleges to align with national labour market targets. This creates a fundamental disconnect between the pressing needs of local labour markets and the essential contributions of skilled international graduates from the over 10,000 diploma and degree programs in high demand fields across our network. And by making eligibility for the post-graduate work permit dependent on national labour market needs, the federal government will make it fundamentally impossible to align our programs to what our communities need."

Marketa Evans, president and CEO of Colleges Ontario, writes:

"The federal government's deeply concerning announcement today on further international student restrictions demonstrates a clear university bias. Such additional restrictions will deepen an already existing crisis in Ontario’s labour market. Without college graduates, Ontario grinds to a halt. 

Over the next two years alone, public colleges in Ontario are projected to see a decline of at least CDN$1.7 billion in revenue due to these restrictions.

Ultimately, these changes mean that the workforce Ontarians rely on won't be there. Ontario’s colleges train the workforce necessary to build desperately needed housing, to meet health care needs, and to deliver job creation through crucial talent pipelines for Ontario’s economy like construction, EVs, nuclear energy, advanced manufacturing, life and health sciences and mining. Ontario’s public college system cannot be cut off at the knees like this. With declining international students, and the resulting budgetary crunch, colleges will have to reduce program offerings or cancel them altogether, which means domestic students won’t have the chance to study in programs that are needed to address critical labour shortages."

Spouses' eligibility for work tied to student’s study programme

Previously, the spouses or partners of students at the graduate level had preserved their right to obtain an open work permit. But later this year, the spouses/partners of master’s degree students whose programmes are less than 16 months in duration will no longer be eligible for such a permit.

PGWP language proficiency requirements

As part of the changes to the PGWP programme, all applicants will be required to demonstrate a minimum language proficiency in French or English in order to increase their ability to transition to permanent residence and adapt to changing economic conditions. A Canadian Language Benchmark (CLB) level 7 for university graduates and CLB 5 for college graduates will be required for anyone applying for a post-graduation work permit on or after 1 November 2024.

For additional background, please see:

• “Canada: Mid-year data indicates that international student commencements could drop by nearly 50% for 2024”
• “Recent policy changes slowing student interest in the UK, Canada, and Australia”