In a significant update to Canada’s immigration landscape, Immigration, Refugees, and Citizenship Canada (IRCC) has announced a permanent cap on study permits. This change, according to Immigration Minister Marc Miller, underscores the government’s commitment to managing immigration levels sustainably and ensuring the integrity of the system.
New Study Permit Cap
Starting in 2025, IRCC will limit the number of study permits issued to 437,000 annually. This is a 10% reduction from the 2024 target of 485,000 study permits. The cap is expected to stabilize at this level through 2026, resulting in approximately 300,000 fewer study permits issued over the next few years.
Minister Miller emphasized the need for a well-managed immigration system, stating, “Not everyone who wants to come to Canada will be able to, and not everyone who wants to stay will be able to. Our immigration system must preserve its integrity and be well-managed and sustainable. As we move forward, we will take all necessary measures to achieve this goal and ensure newcomers’ success.”
Changes for Master’s and PhD Students
Master’s and PhD students will now be required to obtain a Provincial Attestation Letter (PAL), which was previously only required for many college and undergraduate students. The PAL system was introduced earlier this year to help verify the authenticity of study permit applications and control the number of permits issued. IRCC has reserved about 12% of the annual allocation for master’s and PhD students due to their valuable contributions to the Canadian labor market.
New PGWP Eligibility Requirements
In addition to the study permit cap, IRCC is tightening the eligibility criteria for the Post-Graduation Work Permit (PGWP). Starting November 1, university graduates will need to demonstrate a Canadian Language Benchmark (CLB) score of 7, while college graduates will need a CLB score 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
IRCC is also placing limits on Spousal Open Work Permits. Later this year, eligibility will be restricted to spouses of master’s degree students enrolled in programs lasting at least 16 months. This is expected to result in 50,000 fewer spousal work permits issued over the next three years. Additionally, Spousal Open Work Permits will now be limited to spouses of Canadians or permanent residents working in critical sectors.
Impact on Temporary Foreign Worker Program
With Canada’s unemployment rate rising to 6.6% as of August 2024, Employment and Social Development Canada (ESDC) is taking steps to reduce the number of temporary residents holding work permits. Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, reinforced the government’s stance, stating that the Temporary Foreign Worker Program (TFWP) should be used as a last resort and not as a means to replace Canadian workers or suppress wages.
Despite these changes, Boissonnault acknowledged the critical role immigration plays in Canada’s economic growth, which is expected to be 100% reliant on immigration by 2032.
Broader Immigration Policy Changes
These updates are part of broader reforms to Canada’s immigration policies. Earlier this year, IRCC introduced the first-ever cap on study permits, initially as a temporary measure until the end of 2025. This cap led to the implementation of the PAL system and restrictions on PGWP eligibility, particularly for students in college programs with curriculum licensing agreements.
In March, Minister Miller announced that the Immigration Levels Plan for 2025-2027 would include temporary resident levels for the first time, aiming to reduce the overall number of temporary residents, particularly those on study or work permits.
Other measures to curb the influx of temporary residents include:
- Ending the COVID-era policy allowing visitors to apply for a job-supported work permit from within Canada.
- Pausing the processing of Labour Market Impact Assessments (LMIAs) in the low-wage stream of the TFWP for jobs in Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher.
- Tying the issuance of PGWPs to educational programs that align with in-demand sectors in the Canadian economy.
Minister Miller has also hinted at possible changes to permanent immigration levels, promising that while these changes would be significant, they would not “overcorrect” the current system.
More details on this front are expected in the coming weeks.
