On Monday, Canada unveiled a two-year restriction on admitting foreign students in response to a surge in enrollment that has exacerbated the nation’s housing scarcity. Government data reveals that Canada granted almost 1 million study permits last year, a threefold increase from a decade ago. The proposed measure aims to reduce admissions by nearly one-third. Marc Miller, Canada’s immigration minister, announced that the Liberal government will implement a temporary cap on student visas, limiting the issuance to approximately 364,000 in 2024.
The latest recommendations will establish restrictions on post-graduate work permits granted to international students, potentially prompting their return to their home nations. Previously viewed as a straightforward route to permanent residency, these permits will now be subject to limitations. Individuals pursuing master’s or post-doctorate programs will still be eligible for a three-year work permit.
Moreover, spouses of international students enrolled in various levels of study, such as undergraduate and college programs, will no longer qualify, according to Miller. He added that the acceptance of new study permit applications in 2025 will undergo reassessment at the conclusion of the current year.
Canada has become a sought-after choice for global students, given the relatively straightforward process of acquiring work permits post-education. However, the influx of international students has resulted in a severe shortage of rental apartments, leading to a notable increase in rents. According to Statscan, national rents escalated by 7.7% in December compared to the previous year.
Prime Minister Justin Trudeau has faced diminished popularity primarily due to the affordability crisis. Opposition leader Pierre Poilievre of the Conservative Party has garnered a substantial lead over Trudeau in opinion polls as the country approaches an election next year.
In addition to the rental crisis, the government has expressed apprehension regarding the educational standards maintained by certain institutions.
International students contribute approximately C$22 billion ($16.4 billion) annually to the Canadian economy. This decision will adversely impact numerous educational institutions that had expanded their campuses with the expectation of a sustained influx of students.
Ontario, the most populous province, is the largest recipient of international students. Some sectors, including restaurants and retail, have cautioned that limiting foreign student intake will exacerbate the shortage of temporary workers. Canada’s restaurants are already grappling with labor shortages, with nearly 100,000 vacancies. International students accounted for 4.6% of the 1.1 million workers in the food service industry in 2023, as reported by a lobby group to Reuters last week.
The surge in new students has benefited Canadian banks, as each student is required to have a Guaranteed Investment Certificate (GIC) of over C$20,000, a prerequisite for international students to cover living expenses.
Official data from 2022 indicates that the majority, around 40%, of foreign students come from India, with China following at about 12%. The University of Toronto expressed in a statement its commitment to collaborating with all levels of government to ensure that the distribution of study permits acknowledges institutions like U of T and addresses the challenges faced in specific areas.
