Significant Immigration Policy Overhaul and Its Impact on Temporary Residents in Canada
Recent announcements by the Government of Canada have introduced significant policy changes that will impact temporary residents in Canada, particularly international students and work permit holders.
International Student Permit Cap
The Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship Canada (IRCC), has confirmed that the number of study permits to be issued in 2025 at 437,000, a 10% reduction from the 2024 target of 485,000. This measure is projected to result in 300,000 fewer permits issued over the next few years.
Requirement for Master’s and PhD Students
Master’s and PhD students, who were previously exempt, will now be subject to the same requirements as other international students, requiring a Provincial Attestation Letter (PAL) for their study permit applications. Despite this change, IRCC will reserve about 12% of the study permit allocation for these students.
Post-Graduation Work Permit (PGWP) Eligibility Changes
Effective November 1, 2024, university graduates will need to demonstrate a Canadian Language Benchmark (CLB) score of 7 and CLB score of 5 for college graduates. These changes are expected to reduce the number of PGWPs issued by 175,000 over the next three years.
Limits on Spousal Open Work Permits
The eligibility for Spousal Open Work Permits will be limited to spouses of master’s degree students enrolled in programs of at least 16 months in duration. This change is anticipated to result in 50,000 fewer spousal work permits over the next three years. Additionally, Spousal Open Work Permits will be restricted to spouses of Canadians or permanent residents employed in critical work sectors.
What to Expect Moving Forward
The Minister has indicated the government is taking steps to ensure the Temporary Foreign Worker Program is used as a last resort and is not being used to replace Canadian workers or suppress their wages. This is consistent with the recent changes announced that it reduced the maximum number of an employer's workforce that can be made up of low-wage, temporary foreign workers, and restricting in some sectors, the ability to hire low-wage temporary foreign workers in communities with high unemployment rates, notwithstanding immigration remains a key driver of Canada's economic growth, with projections indicating that it will account for 100% of economic growth by 2032.
More details are expected to be relayed to the public in the 2025-2027 Immigration Levels plan, which is set to be released November 1, 2024.
If you have questions or require legal assistance in light of these developments, we welcome you to reach out to the Immigration Practice Group for a consultation.