Canada’s decision to impose a two-year cap on the admission of foreign students stems from a surge in recent years that has worsened the nation’s housing scarcity.
Last year, Canada issued nearly 1 million study permits, a figure three times higher than that of a decade ago, according to government statistics. The proposal aims to reduce this intake by almost a third.
The mechanics of the new strategy and its potential repercussions are outlined below.
WHAT ARE THE FACTS?
Marc Miller, Canada’s immigration minister, announced that the Liberal government will implement a temporary, two-year restriction on student visas, resulting in the issuance of approximately 364,000 visas in 2024.
The proposed measures will also impose restrictions on post-graduate work permits granted to foreign students, likely motivating them to return to their countries of origin.
These permits were previously viewed as a straightforward pathway to acquiring permanent residency. Those engaged in master’s or post-doctorate programmes will qualify for a three-year work permit.
Spouses of international students enrolled in other educational tiers, such as undergraduate and college programmes, will no longer be eligible, Miller confirmed.
The approval of new study permit applications in 2025 will be re-evaluated at the conclusion of the current year.
WHY IS THE GOVERNMENT DOING THIS
Canada’s attractiveness to international students lies in the relatively accessible acquisition of work permits post-graduation.
However, the influx of international students has triggered a severe shortage in rental accommodations, resulting in a surge in rent prices.
In December, nationwide rents escalated by 7.7% compared to the previous year, as per Statscan.
Prime Minister Justin Trudeau’s popularity has suffered primarily due to the affordability crisis.
Opposition Conservative Party leader Pierre Poilievre has taken a significant lead over Trudeau in opinion polls ahead of next year’s election.
Apart from the housing crisis, the government is also apprehensive about the educational quality offered by some institutions.
WHO WILL BE AFFECTED BY THIS?
International students contribute approximately C$22 billion ($16.4 billion) annually to the Canadian economy.
This move will adversely affect numerous educational institutions that expanded their campuses in anticipation of a continual influx of students.
Ontario, the most populous province, hosts the largest share of international students.
Certain sectors, including restaurants and retail, have cautioned that restricting foreign students will result in a shortage of temporary workers.
Restaurants across Canada grapple with labour shortages, boasting nearly 100,000 vacancies.
International students constituted 4.6% of the 1.1 million workers in the food service industry in 2023, according to a lobby group report to Reuters last week.
Canadian banks have gained benefits from the inflow of new students, as each student was required to possess a Guaranteed Investment Certificate (GIC) exceeding C$20,000—a prerequisite for international students to cover living expenses.
The majority, approximately 40%, of foreign students hail from India, with China ranking second at around 12%, according to official 2022 data.
