New measures reduce foreign student visas and temporary worker permits to manage population growth
Prime Minister Justin Trudeau's government is implementing additional measures to reduce immigration, responding to the pressures caused by significant population growth, according to BNN Bloomberg.
Canada will further limit foreign student admissions in 2025, following a reduction in 2024 visa issuance, and will restrict the number of foreign workers and spouses of master’s degree students eligible for work permits, according to Immigration Minister Marc Miller.
For 2025, the intake cap for international students will be reduced by 10 percent from 2024 levels and maintained through 2026, representing a 36 percent decrease from 2023.
However, Universities Canada has warned that the country is on track to undershoot its 2024 target due to declining foreign student applications.
These steps, while incremental, contribute to the government's plan to reduce the temporary resident population, which includes foreign students, temporary workers, and asylum seekers.
This group grew rapidly after the pandemic and has been a source of criticism over Trudeau's handling of immigration policies.
Although strong immigration helped Canada's post-pandemic recovery, population growth of three million in the past three years increased pressure on housing costs and public services, contributing to a decline in Trudeau's popularity.
In March, Miller stated the government's goal to reduce the share of temporary residents to 5 percent over three years. The temporary resident population was 6.2 percent at the time but has since increased to about 6.8 percent.
Miller noted that the cap on foreign student visas is currently the only major policy aimed at reducing immigration.
The new restrictions are expected to reduce the number of temporary immigrants by 525,000 over three years. Miller emphasized that this decrease will help the government achieve its 5 percent goal.
Additionally, the government will announce the first-ever temporary resident target for 2025 to 2027 by November 1.
The Bank of Canada raised its near-term population growth projections in July, reflecting the slower-than-expected impact of the government’s plan to limit temporary residents.
Economists, however, expect weaker long-run growth as population growth slows, increasing the risk of an economic downturn.
Unlike the US, Canada’s immigration pressures do not stem from undocumented migrants but from the large number of newcomers arriving under temporary visas with the aim of obtaining permanent residency.
“The reality is that not everyone who wants to come to Canada will be able to — just like not everyone who wants to stay in Canada will be able to,” Miller said, stressing the need for a sustainable immigration system.
At a press conference, Employment Minister Randy Boissonnault announced measures to limit the use of temporary foreign workers in Quebec, the largest user of the program this year.
These new restrictions will extend those announced in August for other provinces and include bans on using the program in regions with an unemployment rate of 6 percent or higher.
Polling by Nanos Research Group revealed that most Canadians agree the government should reduce the number of temporary workers, despite three in five respondents supporting businesses' use of the program when suitable Canadian candidates are unavailable.
Canada's immigration-driven labour force growth has exceeded the economy’s job creation capacity over the past year, pushing up the overall unemployment rate.
Youth and newcomers have been particularly affected, with abuses and fraud in the temporary worker program increasing as government agencies struggled to keep up with rapid growth.
“The changes we are making today will prioritize Canadian workers and ensure the program meets the needs of our economy,” Boissonnault said.
