Canada on Monday announced a two-year policy to limit foreign students after a rapid increase in immigration in recent years exacerbated the country's housing shortage.
According to Canadian government data, the country issued nearly 1 million study permits last year, about three times the number a decade ago. The new policy will cut the number of study permits issued by 35% in 2024.
Downtown Eastside of Vancouver, British Columbia, Canada. Photo: Reuters
International student restriction policy
Canada’s Minister of Immigration, Refugees and Citizenship Marc Miller said the government will limit student visas for the next two years, which is expected to reduce the number of international students in 2024 to 364,000.
In addition, new policy proposals would limit the number of post-graduate work permits granted to foreign students, which could encourage them to return home to work. Previously, these permits were a common way to secure permanent residency.
The student visa restrictions will only apply to college and university students, not to masters and doctoral students or high school students. Those studying a masters or post-doctoral program will be eligible for a three-year work permit.
Spouses of international students studying at other levels, including university and college programs, will no longer be eligible for work permits, Miller said. He said the acceptance of new study permit applications in 2025 will be reassessed later this year.
The new measures are expected to take effect from September 1.
Why does Canada attract international students?
Canada has emerged as a popular destination for international students because of the relative ease of obtaining a post-study work permit. However, the surge in international students has led to a severe shortage of rental apartments, driving up rents. According to Statistics Canada, rents across the country increased by 7.7% in December 2023 compared to a year earlier.
The housing crisis and rising living costs have dented Prime Minister Justin Trudeau's popularity ahead of next year's election.
In addition to the rental crisis, the Canadian government is also concerned about the issue of some educational institutions not meeting quality standards, but taking advantage of international student programs to increase student enrollment and charge high tuition fees while still having limited resources and infrastructure.
Who will be affected?
International students contribute an estimated $16.4 billion to the Canadian economy annually, so the proposed tightening will hurt many institutions that have expanded their campuses in hopes of continuing to attract students.
In Ontario, the most populous province and home to the largest number of international students, some businesses, including restaurants and retailers, have warned that limiting international students would create temporary labour shortages.
Restaurants across Canada are struggling with a labour shortage, with nearly 100,000 vacancies, according to Reuters. International students will account for 4.6% of the 1.1 million workers in the food service industry by 2023.
The influx of international students into Canada also benefits banks in this country, as each student is required to have a Guaranteed Investment Certificate (GIC) worth more than CAD 20,000 (nearly USD 14,900), a prerequisite for international students to cover living expenses.
According to official figures from 2022, the majority (about 40%) of international students in Canada come from India, 12% from China. The number of Vietnamese students is about more than 16,000.
The University of Toronto welcomed the announcement of the new policy and said it would work with authorities on the allocation of study permits. In a statement, they said the changes were “focused on addressing abuses in the system by specific actors, not intended to negatively impact universities like Toronto.”
Hoai Phuong (according to Reuters)
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