Canada Seeks to Reduce International Student and Temporary Worker Inflow

Strategic Insights -

Canada is actively working to decrease the number of international students and foreign temporary workers coming into the country. A key part of this effort is the 2025-2027 Immigration Levels Plan, which aims to reduce Canada's temporary population to less than 5%. The plan has already shown early signs of success, with total arrivals experiencing a nearly 57% decline in the first half of the year compared to the same period in the prior year. This decline is largely driven by a significant reduction in the number of international students and foreign work permits.

Key Takeaways:

  • The number of new foreign students arriving in Canada has decreased by 214,520 in the first half of 2025 compared to the same period in 2024, representing a 70% fall.
  • The rejection rate for Indian students seeking Canadian study permits reached 80% in 2025, marking them as the most impacted international student demographic.
  • Canada introduced an annual cap on international student study permits in 2024, with a further 10% reduction planned for 2025.
  • The cap for 2025 is 437,000 study permits, representing a 10% decrease from the 2024 cap.
  • Post-secondary Designated Learning Institutions (DLIs) are now required to verify each applicant's letter of acceptance directly with IRCC to prevent study permit fraud.
  • Canada has raised financial requirements for foreign students, including a minimum required fund of $22,895 for a family of one, including first-year tuition and travel costs.
  • The Student Direct Stream, an expedited study permit processing initiative, was ended in November 2024.
  • Canada set a 10% cap on low-wage hires per workplace and introduced a refusal-to-process policy in urban areas with unemployment at or above 6%.
  • The starting hourly wage for workers coming into Canada through the high-wage stream has been increased by 20% from the previous level.

Statistics:

  • Total arrivals, including international students and foreign workers, experienced a nearly 57% decline in the first half of 2025 compared to the same period in the prior year.
  • The number of new foreign students arriving in Canada decreased by 214,520 in the first half of 2025 compared to the same period in 2024, representing a 70% fall.
  • The number of foreign work permits has seen a 50% decline in the first half of 2025 compared to the same period in 2024.
  • The rejection rate for Indian students seeking Canadian study permits reached 80% in 2025.

Sources:

  • Sunil Dhawan
  • IE Online Media Services Pvt. Ltd.
  • Contify.com