In a significant move to reshape Canada’s immigration and labor landscape, Prime Minister Justin Trudeau has announced sweeping changes to the country’s international work permit system. On Thursday (September 19), Trudeau shared on X (formerly known as Twitter) that the country will grant 35% fewer international student permits this year, with a further 10% reduction planned for 2025. The announcement highlights Canada’s efforts to address growing concerns over housing, infrastructure, and the labor market.
“We’re reducing the number of low-wage, temporary foreign workers and shortening the duration of their work terms,” Trudeau reiterated, echoing statements made in August. He added that the labor market has evolved since the pandemic, and the new focus is on encouraging businesses to invest more in Canadian workers.
Why Has Canada Curbed International Work Permits?
Canada issued approximately 485,000 student permits in 2024, compared to over 500,000 in 2023, with projections showing a decrease to 437,000 in 2025. These reductions are part of broader policy adjustments aimed at alleviating pressure on urban infrastructure, curbing rent increases, and addressing concerns about unchecked immigration growth.
A key reason behind these policy shifts is the misuse of the system by some international students, who apply for asylum after arriving in the country. “Immigration is an advantage for our economy,” said Trudeau, “but when bad actors abuse the system and take advantage of students, we crack down.” In response, the visa issuance process has been revamped to better detect fraudulent asylum claims.
These reductions are also part of Canada’s goal to reduce the number of temporary residents from 6.5% of the population to 5% by 2027. The forthcoming 2025-2027 immigration levels plan, expected to be released by November 1, will reflect these changes in full.
New Restrictions on Postgraduate Work Permits (PGWP)
The new policies also bring significant changes to the Postgraduate Work Permit (PGWP), a critical pathway for international graduates in Canada. Currently valid for three years, the PGWP will see its numbers reduced by 175,000 through tighter regulations over the next three years. Additionally, work permits for spouses of students will be limited to 50,000 and will only be available if the student is enrolled in a master’s program lasting at least 16 months.
One of the most notable changes is the introduction of the Canadian Language Benchmark (CLB) as a requirement for PGWP applications.
As of November 1, students applying for the permit will need to pass the CLB test, scoring 7 for university undergraduates and 5 for college undergraduates. Previously, the CLB was only required for Permanent Residency (PR) applications.
Graduates from programs at public colleges will still be eligible for a PGWP, but only if their degree is connected to sectors experiencing long-term labor shortages, as identified by the government. Additionally, students enrolling in master’s and doctoral programs must now provide a Provincial Attestation Letter (PAL), a requirement previously limited to undergraduates.
Challenges for Students
The tightened regulations have caused uncertainty for many students, particularly those completing diploma courses in business administration, IT, and similar fields that no longer align with Canada’s long-term employment needs. “Students studying programs outside of high-demand fields may find it increasingly difficult to secure work permits under the new rules,” noted Nitin Chawla, an immigration consultant based in Punjab, India.
The impact of these changes is expected to ripple through Canadian colleges as well, which may need to introduce new programs tailored to fields with labor shortages, such as plumbing, mechanics, AI, carpentry, health, and nursing.
What Are the Alternatives?
Canada’s decision to curb the intake of international students and workers is prompting some to look at alternative study destinations. With over 1 million international students holding work permits as of 2023, compared to just 490,000 in 2017, the country had seen rapid growth in this sector, with Indian and Chinese students representing more than half of the international student population for the past eight years.
Saurabh Arora, CEO of University Living, a student accommodation service, believes that this policy shift reflects Canada’s commitment to aligning immigration with long-term economic objectives. Arora suggests that emerging study destinations such as Germany, Singapore, Italy, and Ireland could see an influx of students seeking new opportunities as Canada limits its international work permits.
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