Canada to Cut International Student Permits by 10% in 2025, Tightens Work Permit Rules

Canadian Prime Minister Justin Trudeau announced a 10 percent reduction in international student intake, effective in 2025. The number of new student study permits will drop from the 2024 target of 485,000 to 437,000. 

Trudeau revealed the decision in a post on X, explaining that the move is necessary to protect Canada from system abuse. He added, “Immigration is an advantage for our economy, but when bad actors exploit the system and take advantage of students, we crack down.”

Additionally, the Canadian government will limit work permits for spouses of master’s degree students to programs lasting at least 16 months, and only to spouses of foreign workers in specific sectors facing labor shortages. Changes to the post-graduation work permit program are also expected to better align with immigration goals and labor market needs.

This reduction is part of a broader plan to lower the number of temporary residents in Canada to five percent over the next three years, down from the current 6.2 percent. The government had previously implemented a two-year cap on study permits, reducing undergraduate student permits to 364,000 in 2024, a 35 percent decrease from 2023.

Immigration Minister Marc Miller, speaking in Ottawa, emphasized that the cap is "here to stay," noting that the reduction has already impacted rental markets where international students are prevalent. While universities have criticized the cap, Miller urged institutions to adjust their recruitment strategies to adapt to the changes.

Canada has long relied on immigration to support its economy, particularly to generate revenue for public services such as education and healthcare, in response to the country’s low birth rate. However, the rapid growth of international students has also been linked to rising housing costs and affordability challenges.