The Canadian government has introduced significant changes to its international student program, including a cap on study permits for 2025 and 2026, and stricter eligibility for post-graduation work permits (PGWPs).
These adjustments are part of an ongoing effort to manage temporary resident numbers while addressing key labor market demands in Canada.
What’s new in Canada’s Study Permit regulations?
The study permit cap for 2025 and 2026 will be reduced by 10% compared to the 2024 level, limiting the number of international students who can enroll. For the first time, master’s and doctoral students will be included in this cap. Starting in 2025, 12% of the allocated permits will be reserved for these advanced degree students.
Additionally, university graduates will still be eligible for a three-year PGWP, but public college graduates will only qualify if their program is aligned with high-demand labor market needs.
While announcing the changes last month, Canadian Immigration Minister Marc Miller emphasized the need for these changes: “When you look at the growth we have seen in people who are temporary residents of Canada, that is something that has grown almost exponentially over the last few years."
“The reality is that not everyone who wants to come to Canada will be able to—just like not everyone who wants to stay in Canada will be able to. We are taking action to strengthen our temporary residence programs and roll out a more comprehensive immigration plan to meet the demands of today’s changing landscape. Our immigration system must preserve its integrity, and be well managed and sustainable. And as we look forward, we will do everything it takes to achieve that goal and set newcomers up for success,” he continued in a press release.
The press release also outlined the government's goal of reducing the temporary resident population to 5% of Canada's total population by 2026.
Language Proficiency Requirements for PGWPs
From November 2024, international students applying for a PGWP must demonstrate a minimum level of language proficiency in either French or English. This change is intended to help graduates transition smoothly into the Canadian workforce and support long-term residency goals.
Which Students Will Be Affected by the New Cap?
Graduate Students: Master’s and PhD students will now be counted toward the annual study permit cap starting in 2025.
Public College Graduates: Only graduates of programs linked to high labor market demand will remain eligible for a three-year PGWP.
Spouses of Graduate Students: Spouse Work Permits will be limited to students in programs of at least 16 months.
While the Canadian government continues to fine-tune its immigration policies, these changes have sparked concern among educators, particularly those in public colleges. Colleges and Institutes Canada (CICan) expressed worry that aligning PGWP eligibility with national labor market needs may harm local economies. They stated: “This creates a fundamental disconnect between the pressing needs of local labour markets and the essential contributions of skilled international graduates from the over 10,000 diploma and degree programs in high demand fields across our network.”