Ottawa announces further changes aimed at reducing number of temporary residents in Canada

On September 18, 2024, the federal government announced further measures to reduce temporary residents in Canada. These most recent changes are summarized below.

Further reductions to study permits

As well as stating that “the international student cap is here to stay,” the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, announced two further restrictions on the study permit program. These are an additional 10% reduction to the number of study permits to be issued in 2025 and fewer exemptions from the cap.

The federal government initially announced the international student cap earlier this year. It now aims to issue a further 10% fewer study permits in 2025 and 2026 compared to 2024. In terms of numbers, the government hopes to issue 437,000 study permits in each of 2025 and 2026, representing a 36% decrease from 2023 issuances.

Additionally, beginning in 2025, master’s and doctoral students – who were previously exempt from the study permit cap – will now count towards the annual target. However, 12% of the target will be reserved for these graduate-level students to encourage these individuals to choose Canada as a place to live to assist with growing labour market needs. Overall, it is estimated that these changes will result in approximately 300,000 less study permits being issued over the next three years.

Post-graduation work permit changes

Beginning November 1, 2024, new language proficiency requires will be put in place for post-graduation work permit (“PGWP”) applicants. This will require university graduates to have a Canadian Language Benchmark (“CLB”) level 7, while college graduates will need a CLB level 5 to qualify for a PGWP. Additionally, PGWP eligibility will now depend on the applicant’s level of study, with graduates from university degree programs remaining eligible for a three-year work permit. However, graduates from colleges will only be eligible for a PGWP where their program is linked to filling a Canadian labour market shortage. It is estimated that these changes will result in approximately 175,000 fewer PGWPs being issued.

Reduced eligibility for spousal work permits

Finally, spouses of international students and foreign workers in Canada will also see their ability to obtain a Spousal Open Work Permit (“SOWP”) limited. Spouses of international students will only be eligible for a SOWP where the student is enrolled in a doctoral program or a master’s program with a duration of 16 months or more. Meanwhile, only spouses of highly-skilled, highly-specialized or critical foreign workers will be eligible to apply for a SOWP.

Although information on the particular National Occupational Classification codes and TEER skill-levels this will include is not yet available, Minister Miller stated that it would encompass spouses of individuals in management or professional occupations, or those in areas where labour shortages are recognized.

In subsequent public speeches, Minister Miller went on to state this may include occupations such as physicians, lawyers, professors, executives, technicians, engineers and scientists, or in key sectors where labour shortages exist. Taken together, these changes to spousal work permit eligibility are expected to result in a total reduction of 150,000 work permits.

These most recent changes come on the heels of several other government initiatives aimed at reducing temporary residence in Canada. In January, the Minister first announced a cap on international student intake. Beginning in May, the government reduced the proportion of foreign workers that can legally be employed by Canadian employers. More recently, restrictions on the temporary foreign worker program were announced.

For further information on these changes and other immigration-related issues, contact a member of MLT Aikins Immigration team today.

Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.