IRCC announces cap on study permits & PGWP eligibility changes. The cap on international students will stay in place, according to a statement made by Canada’s Immigration Minister, Marc Miller. It is projected that in 2025, IRCC will only award 437,000 study permits. This amount is a 10% decrease from the 485,000 study permits that were planned for 2024. After that, the intake cap will be steady until 2026. Over the next few years, the IRCC predicts that this decision will result in the issuance of 300,000 fewer study permits to overseas students.

The minister has provided multiple updates regarding modifications to Canada’s program for international students. He underlined that not every application would be granted admission and that not every candidate would be allowed to remain in Canada permanently. The minister emphasized the significance of an immigration system that is sustainable, well-managed, and upholds its integrity. He declared that Canada will put in a lot of effort to accomplish this aim and make sure that newcomers succeed.

Provincial Attestation Letter Now Required for Master’s and PhD Students 

Master’s and doctorate students will no longer be excused from getting a Provincial Attestation Letter (PAL) due to the new cap.

In recognition of the benefits these students provide to the Canadian job market, the government intends to set aside approximately 12% of the allocation spaces for them.

The purpose of PALs, which were made available to many college and undergraduate students earlier this year, is to help the IRCC manage the quantity of study permits that are issued and ensure that applications are legitimate.

Modifications to PGWP Eligibility 

Moreover, there has been an upgrade to the qualifying standards for a Post-Graduation Work Permit (PGWP). Commencing on November 1, graduates of universities must demonstrate a Canadian Language Benchmark (CLB) score of 7, whilst graduates of colleges must demonstrate a CLB score of 5.

Miller predicts that during the following three years, there will be 175,000 fewer PGWPs issued as a result of these modifications.

Restrictions on Spousal Open Work Permits 

Later this year, spouses of master’s degree students participating in programs lasting at least 16 months will only be eligible for work permits, according to IRCC regulations. Over the following three years, it is anticipated that this modification will result in 50,000 fewer spouse work permits being granted.

Furthermore, spouses of Canadian citizens or permanent residents employed in vital industries will only be eligible for Spousal Open Work Permits, which has nothing to do with the foreign student program.

Effects on the Temporary Foreign Worker Program

Since April 2023, there has been an increase in Canada’s unemployment rate of 1.5 percentage points. The overall unemployment rate increased from 6.4% to 6.6%, according to Employment and Social Development Canada (ESDC). There were 1.5 million jobless people in August 2024, up 60,000 (or 4.3% ) over the previous month.

The new policies that were unveiled today aim to lower the number of temporary residents with work permits in Canada in the near future.

Together with Minister Miller, Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, emphasized throughout their speech that using the Temporary Foreign Worker Program (TFWP) to displace Canadian workers or reduce their pay should never be done.

Minister Boissonnault did, however, also point out that immigration accounts for 99% of Canada’s economic growth, and that percentage is predicted to rise to 100% by 2032.

Adjustments to Temporary and Permanent Resident Levels in Canada

The immigration system in Canada has undergone major modifications this year as a result of the introduction of various new policies.

The first-ever research permit cap was imposed by the IRCC in January. It was originally intended to be a temporary measure that would continue until the end of 2025. This cap established the PAL system and gave each province government a set number of study permits.

Further limitations on PGWP eligibility were announced along with the study permit cap, prohibiting students enrolled in college programs that have “curriculum licensing agreements.” Furthermore, Spousal Work Permits were subject to new restrictions, limited to the spouses of master’s and PhD program participants, with a few exceptions.

Minister Miller declared in March that as part of the plan to reduce the number of temporary residents (those with employment or study permits), the Immigration Levels Plan for 2025–2027 will include temporary resident levels for the first time.

In addition, Canada has taken the following additional steps to reduce the number of temporary residents: 

  • Removing the COVID-era rule that let some foreign visitors to apply from within Canada for a work permit backed by their employment.
  • Halting the processing of Labor Market Impact Assessments (LMIAs) for jobs in Census Metropolitan Areas (CMAs) with 6% or greater unemployment rates in the TFWP’s low-wage stream.
  • Pondering substantial modifications to the process of awarding Post-Graduation Work Permits (PGWPs) to foreign graduates, possibly tying these permits to training programs that correspond with high-demand industries in Canada.

According to Minister Miller, he is also thinking about ways to change the number of permanent immigrants who come to Canada. He stressed the importance of not “overcorrecting” these levels, but he also admitted that any adjustments being considered would be “significant” as opposed to merely “cosmetic.” In the next weeks, further information on this subject is anticipated.