Canada to further limit international student permits, tighten foreign worker rules

Synopsis

The Canadian government, led by Prime Minister Justin Trudeau, plans to reduce immigration by cutting foreign student permits and tightening rules for temporary workers starting next year. This move aims to address the rapid growth of the temporary resident population and alleviate pressures on housing costs and public services.

In response to the strains of rapid population growth, Prime Minister Justin Trudeau’s government is taking additional steps to reduce immigration. The Canadian government announced it will further cut the intake of foreign students and tighten rules for foreign workers starting next year. Immigration Minister Marc Miller disclosed these measures during a news conference in Ottawa.

For 2025, Canada will reduce international student permits by 10% from this year’s levels, maintaining this limit through 2026. This represents a 36% decline from the 2023 numbers. However, Universities Canada has indicated that the country is already on track to undershoot this year’s target due to fewer applications from foreign students.

These changes aim to address the rapid growth of the temporary resident population, which includes foreign students, temporary workers, and asylum seekers. This demographic has expanded significantly post-pandemic, leading to criticisms of Trudeau’s handling of immigration policies. Miller emphasized the importance of a sustainable immigration system, stating, “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. Our immigration system must preserve its integrity and be well-managed and sustainable.”

Canada’s strong immigration initially supported the country’s post-pandemic recovery and mitigated the impact of high interest rates on economic growth. However, the recent population surge—adding about three million people in the last three years—has put pressure on housing costs and public services, affecting Trudeau’s popularity.

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In March, the government set a goal to reduce the share of temporary residents to 5% within three years, down from the 6.2% recorded at that time. Since then, this proportion has risen to about 6.8%. The current reduction in foreign student visas is the only major policy contributing to the immigration decline. The measures announced are expected to further decrease the number of temporary immigrants by 525,000 over three years, moving towards the government’s 5% target.

Employment Minister Randy Boissonnault also announced new restrictions on the use of temporary foreign workers in Quebec, expanding measures imposed in other provinces. The tighter policies include prohibitions on using the program in regions where the unemployment rate is 6% or higher. This decision aligns with public opinion, as a recent poll by Nanos Research Group for Bloomberg News revealed that a majority of Canadians support reducing the number of temporary workers.

Despite the government’s focus on reducing temporary resident numbers, the Bank of Canada anticipates that these efforts might take longer than expected to slow immigration, potentially leading to weaker long-term economic growth. Unlike the U.S., Canada’s immigration pressures stem from the influx of individuals coming to study and work under temporary visas with aspirations of seeking permanent residency.

Boissonnault highlighted the need to prioritize Canadian workers, stating, “Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy.”

The government plans to announce the first-ever temporary resident target for 2025 to 2027 by November 1, setting the stage for its future immigration strategy.

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