Canada's New Study Permit Capping & Spousal Work Permit Changes

Last Updated On 20 September 2024, 9:17 AM EDT (Toronto Time)

New Study Permit Capping & Spousal Work Permit Changes: Canada is taking significant steps to tighten its immigration policies for international students.

As of September 18, Immigration Minister Marc Miller announced new measures that will see a reduction in the number of study permits and spousal work permits for 2025 and 2026.

These changes follow an earlier cap announced in January 2024, which sought to moderate the influx of international students and their families.

Let’s break down how these two announcements compare and what they mean for international students planning to study in Canada in the coming years to clear up the arising confusion.

Further Reduction in Study Permits

In a further tightening of policy, the September 18 announcement sets an even more stringent cap for 2025 and 2026.

Canada will issue up to 437,000 study permits annually—around 10% fewer than in 2024 and 36% fewer than in 2023.

What’s more, this cap will now include master’s and doctoral students, meaning fewer exemptions will be granted.

Graduate students who were previously exempt from the cap will now face the same scrutiny as undergraduate and diploma program applicants.

Over the next three years, the government aims that this cap will result in approximately 300,000 fewer international students in Canada, easing some of the pressures on housing, labour markets, and other critical infrastructure.

In January 2024, Canada announced for the first time a cap on welcoming a number of new international students in a given year, a 35% reduction compared to the influx in 2023.

This was the government’s first serious attempt to manage the soaring number of international students entering the country.

The goal was to moderate growth and address strains on infrastructure, housing, and labour markets.

Notably, master’s and doctoral students, along with elementary and secondary school students, were exempt from the cap announced in January, but September’s announcement is aimed at bringing them under the cap as well.

A New Focus on Graduate Students

A key element of Canada’s new approach is a targeted focus on attracting highly skilled, high-potential students.

While the overall number of study permits will decrease, Canada is reserving 12% of the capped study permits for graduate students, including those pursuing master’s and doctoral degrees.

According to the government, these students are more aligned with the country’s economic needs, especially in areas like research, technology, and specialized industries.

This focus is intended to help Canada meet its long-term labour market needs. Graduate students typically have higher employment prospects and are more likely to integrate into the Canadian workforce after graduation.

By prioritizing these students, Canada aims to maintain a competitive edge in the global talent pool, despite reducing overall international student numbers.

Stricter Rules for Spousal Open Work Permit Eligibility Criteria

The September announcement further narrows eligibility for spousal work permits.

In the near future (exact date not specified yet), spouses of international students in doctoral and certain master’s programs, as well as select professional programs, will no longer automatically qualify for open work permits.

This move is designed to reduce the number of temporary residents entering the Canadian workforce through this route.

Over the next three years, it is anticipated that this change will result in approximately 50,000 fewer work permits being issued to spouses of students.

Additionally, the government will restrict spousal work permit eligibility for spouses of highly specialized workers and professionals.

Only the spouses of workers in critical sectors—such as healthcare, construction, and key specialized professions—will remain eligible.

This decision is expected to reduce work permits by approximately 100,000 over the next three years.

By prioritizing sectors with the greatest labour shortages, such as healthcare and engineering, the Canadian government aims to ensure that the spouses who are granted work permits contribute meaningfully to the economy.

The cap reflects a broader intention to align immigration policy with Canada’s economic needs and workforce priorities.

Already Fewer International Students in 2024

While the new policies are slated for 2025 and beyond, early signs suggest that the cap introduced in January is already having a substantial effect on international student arrivals in 2024.

From January to August 2024, Canada saw a 38% decrease in international student arrivals compared to the same period in 2023.

This amounts to 200,000 fewer international students entering the country, which aligns with the government’s goal of easing pressure on housing, infrastructure, and employment markets.

By reducing the overall number of international students, Canada is seeking to address several critical issues that have emerged as a result of the country’s open immigration policies.

These include an overheated housing market, stretched municipal resources, and competition in the labour market, particularly for entry-level jobs.

A Shift in Canada’s Immigration Strategy

The September 2024 announcement signals a significant shift in Canada’s immigration policy.

Previously, international students were seen as a critical pipeline for future permanent residents, contributing to both the country’s economy and population growth.

However, by including temporary residents in the country’s immigration planning levels, the government is taking a more cautious and measured approach.

The new annual target for international students and the introduction of stricter spousal work permit rules highlight Canada’s efforts to balance the benefits of international students with the challenges of managing infrastructure and labour market demands.

The Post-Graduation Work Permit (PGWP) program will also see adjustments to better align with economic priorities, focusing on students whose skills are in high demand in Canada.

By retaining flexibility to adjust these targets based on evolving labour market needs, the government aims to ensure that the influx of international students aligns with Canada’s capacity to accommodate them, both in terms of housing and employment.

What These Changes Mean for Prospective International Students

For international students, especially those aspiring to study in Canada at the undergraduate level, these policy changes represent a significant shift.

Competition for study permits is likely to intensify as the number of spots decreases, particularly for those seeking degrees in fields that are not directly aligned with Canada’s economic needs.

Graduate students, while still affected, may find some relief in the 12% allocation reserved for their group, but even they will face new challenges in obtaining spousal work permits.

As Canada tightens its immigration policies, students considering higher education in the country will need to plan more carefully.

When deciding on education and employment opportunities in Canada, it will be crucial for both students and their families to be aware of the government’s priority sectors and fields of study.

Canada’s new study and work permit policies represent a turning point in its approach to international students.

By reducing the overall number of permits issued and prioritizing highly skilled students and workers, the government aims to address critical economic and infrastructure challenges while still attracting top talent.

As these changes come into effect in 2025, prospective students and their families will need to adapt to a more competitive and targeted immigration environment.

Kamal Deep Singh, RCIC (Regulated Canadian Immigration Consultant) licensed by CICC (formerly known as ICCRC) with member number R708618. He brings extensive knowledge of immigration law and new changes to rapidly evolving IRCC.