Citing economic concerns, Canada has recently enacted immigration-limiting legislation. Below, we discuss these developments and their potential effects on Indian students wishing to study overseas.
Prime Minister Justin Trudeau proposed changes to Canada’s international work permit system to lower the country’s foreign labour force.
In posts on X on September 19, Trudeau said that Canada will issue 35% fewer licenses to foreign students this year and an additional 10% fewer permits the next year.
He repeated what he had stated in August: “We’re reducing the number of low-wage, temporary foreign workers and shortening the duration of their work terms.” We modified the program after the epidemic, but the employment market has altered. According to Trudeau, businesses must invest in Canadian labour.
Why did Canada start restricting work permits for foreigners?
In 2024, Canada awarded over 4,85,000 student permits, down from over 5,000,00,000 in 2023. The number is anticipated to decline further to 4,37,000 by 2025.
This is consistent with recent policy adjustments wherein the government justified the imposition of limits by pointing to pressure on urban infrastructure, increased rents, and a “massive” surge in immigration.
Additionally, it was discovered that a few students applied for asylum through the system after coming to Canada. “Immigration is an advantage for our economy—but when bad actors abuse the system and take advantage of students, we crack down,” Trudeau stated.
The procedure for issuing visas has been modified to identify false or denied asylum petitions. The 2025–2027 immigration levels plan, which is scheduled for release by November 1, will consider the proposed drop in temporary residents from 6.5% to 5% of Canada’s population.
What additional limitations apply to PGWP?
Postgraduate Work Permits (PGWPs) are valid for three years and apply to overseas graduates, postgraduates, master’s, and PhD program students studying in Canada.
In the next three years, the Canadian government wants to cut the number of PGWPs by 1.75 lakh by enforcing stronger regulations. Spouse work permits will only be issued if one’s spouse is enrolled in a master’s program for at least 16 months and will be lowered by $50,000.
Students must now pass the Canadian Language Benchmark (CLB), a language competency exam, to apply for the PGWP. For all applications filed starting on November 1st, applicants must receive a minimum score of 5 for college undergraduates and 7 for university undergraduates. Previously, obtaining the CLB was limited to applying for PR or permanent residence.
Graduates from public college programs will still be qualified for a PGWP if their field of study is related to one of the jobs with a sustained labour shortage in the nation (as specified by the government).
A provincial attestation letter is required for students enrolling in master’s and PhD programs (PAL). This requirement was previously limited to undergraduate students.
What difficulties do students face?
The future is unknown for the thousands of diploma holders who finished their courses in August. According to Nitin Chawla of Kapri, a Ludhiana-based immigration advisory firm, it’s possible that those with degrees in business administration, IT, etc., won’t discover that their skills meet Canada’s long-term employment needs.
If Canadian universities that offer these courses don’t add new programs, they can likewise witness a decline in foreign enrollments. Consultants located in Punjab have observed that students can receive a PGWP if they have abilities in plumbing, mechanical, AI and machine learning, carpentry, refrigeration and air conditioning/heating, health, and nursing, all of which are experiencing labour shortages.
What other options are there?
Data from Immigration, Refugees Canadian Citizenship (IRCC) in Canada indicates that in 2017, there were around 4.90 lakh holders of work permits for overseas students. This figure increased to above 10 lakh by 2023. In the last eight years, the combined number of Indian and Chinese students has exceeded that of all other international students.
The CEO of student housing provider University Living, Saurabh Arora, claims that Canada’s move to lower immigration levels reflects its dedication to coordinating its foreign education policies with long-term economic objectives.
He continued by saying that the change would persuade Indian students to consider other developing countries that are becoming increasingly desirable for study, such as Germany, Singapore, Italy, and Ireland.
