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Emigration and immigration

Canada's Stricter Immigration Policies and Economic Challenges Hit International Students and Temporary Workers

Strategic Insights

— 2 min read

Canada's latest immigration trends reveal a sharp decline in the number of international students and temporary workers entering the country. Between June 2024 and June 2025, study permits dropped from 11,287 to 4,185, marking a fall of 7,102 students, while work permits fell from 36,022 to 24,058, a decline of 11,964 workers.

The downward trend reflects growing challenges for both international students and temporary workers, hinting at stricter immigration policies and economic considerations. The data is presented on the official website of the Immigration, Refugees and Citizenship Canada (IRCC) and is as of June 30, 2025.

Key Takeaways:

  • Stricter immigration policies and economic challenges have led to a sharp decline in international students and temporary workers in Canada, with study permits dropping from 11,287 to 4,185 and work permits falling from 36,022 to 24,058 between June 2024 and June 2025.
  • The decline in international students has significant economic implications, with international students contributing an estimated $16.4 billion annually to the economy, but colleges are now reporting falling revenues.
  • The tighter scrutiny of admission documents and the verification process for acceptance letters have made it more difficult for students to secure study permits, creating a "psychological barrier" for middle-income families in India.
  • International students are now facing difficult choices, including taking larger loans, front-loading bank debts, or shifting to cheaper programmes such as two-year diplomas or exploring destinations like Germany, Finland, or Ireland, where proof-of-funds requirements are lower and living costs are more manageable.
  • The Canadian government's efforts to maintain a balanced and sustainable immigration system are being reflected in the decline of international students, with 88,617 fewer new students arriving between January and June 2025 compared to the same period last year.
  • Temporary workers are also facing challenges, with 125,903 fewer new workers arriving between January and June 2025 compared to the same period last year.
  • The upGrad Transnational Education Report 2024--25 shows that Germany is emerging as a strong alternative to Canada, attracting 32.6 per cent of Indian students considering Europe, with countries like France and the UAE also witnessing a surge in Indian interest.

Statistics:

  • Study permits fell from 11,287 to 4,185 between June 2024 and June 2025, marking a decline of 7,102 students.
  • Work permits fell from 36,022 to 24,058 between June 2024 and June 2025, a decline of 11,964 workers.
  • International students contribute an estimated $16.4 billion annually to the economy.
  • Colleges are reporting falling revenues due to the decline in international students.
  • 88,617 fewer new students arrived between January and June 2025 compared to the same period last year.
  • 125,903 fewer new temporary workers arrived between January and June 2025 compared to the same period last year.
  • Germany is attracting 32.6 per cent of Indian students considering Europe, with 9 per cent choosing other European destinations.

Sources:

  • Immigration, Refugees and Citizenship Canada (IRCC) official website
  • Reuters news agency
  • upGrad Transnational Education Report 2024--25
  • OneStep Global
  • Contify.com

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