Stricter visa caps, higher financial requirements, and policy reforms drive the sharpest fall in foreign student arrivals in over a decade, in Canada.
Canada has recorded one of its steepest drops in international student arrivals in years, with new data showing a nearly 60 percent decline compared to last year.
According to figures released by Immigration, Refugees and Citizenship Canada (IRCC), only 45,380 new international students entered the country in August 2025, down from 117,400 in August 2024. The drop reflects the sweeping immigration reforms introduced since late 2023, including study permit caps, stricter eligibility criteria, and slower visa processing times.
The federal government had initially set a national limit of 360,000 study permits in early 2024 to “stabilize growth” and relieve pressure on housing and infrastructure. That cap was reduced by another 10 percent this year, further shrinking provincial allocations.
Ottawa also raised the financial threshold for study permit applicants and required that every letter of acceptance be verified through an official digital process to combat fraud. The result has been fewer applications and delayed arrivals, leaving many institutions scrambling to fill classrooms once bustling with international students.
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Immigration Minister Marc Miller defended the policy shift, saying the government’s goal is not to deter talent but to “restore balance” to temporary migration. “We’re returning temporary resident levels to below 5% of Canada’s population,” he said, emphasizing sustainability and fairness to local communities.
The reforms have reshaped not only the student stream but also the Post-Graduation Work Permit (PGWP) Program, which now restricts eligibility to graduates from select public institutions and labor-aligned programs. Several private college partnerships have lost access, prompting many prospective students to look toward other destinations such as Australia, Germany, and the United Kingdom.
The decline extends beyond education. The Temporary Foreign Worker Program (TFWP) has also been tightened, with new limits on low-wage hires and restrictions in high-unemployment regions. By August 2025, Canada had 514,540 study permit holders, 1.48 million work permit holders, and 287,885 individuals holding both — a marked drop from the 2.8 million temporary residents recorded in 2024.
Officials say the changes are beginning to “restore balance” after years of unprecedented inflows that strained housing, healthcare, and labor systems.
Analysts warn, however, that the sharp contraction could hurt universities, small businesses, and the rental market, which have all come to rely heavily on international students and workers.
While Ottawa maintains that the caps are temporary, the 2025–2027 Immigration Levels Plan suggests the era of unfettered student and temporary worker growth in Canada may be coming to a close.
