Key Changes to Canada’s Foreign Enrollment Limits & Post-Graduation Work Policies

In a bid to better manage the influx of foreign learners and guarantee the long term sustainability of Canada’s immigration system, IRCC has recently implemented substantial changes to the PGWP and study visa programs. The alterations, which are set to take effect in November 2024, will affect the number of international students who enter Canada.

Additionally, the criteria for post-study employment and family options for settlement will be tightened. The following is a comprehensive analysis of the modifications, including their justification, advantages, and disadvantages, as well as the broader implications for the Canadian labor market and pupils

Major Updates Made by IRCC

Annual Limit on Study Permits:

• Starting in 2025, IRCC will cap the annual issuance of educational visas at 437,000.
• This new limit represents a 10% reduction compared to the 2024 target of 485,000 permits.
• The cap is expected to lead to approximately 300,000 fewer international students enrolling in Canadian universities in the coming years.

Reasons for Setting a Limit:

Over the last decade, a surge in international students has created numerous challenges, including labor market saturation, increased pressure on public services, and housing shortages. To address these issues and maintain Canada’s standing as a premier destination for international students, the Canadian government has implemented this restriction.

How Master’s and Doctoral Students Are Affected:

Previously exempted from such constraints, this cap now includes master’s and PhD students. Students seeking a study permit must now provide a Provincial Attestation Letter (PAL).. 

This letter verifies the student’s identity and assures that a study permit will be issued. Students possessing advanced degrees will receive 12% of all student permits, indicating their significance to the Canadian industry.

Updates to Post-Graduation Work Visa Regulations:

PGWP, which enables overseas students to seek employment in Canada after finishing their degrees, will have stricter qualifying requirements.

Starting November 1, 2024, applicants to the PGWP who have graduated from university will need to provide a CLB score of 7, while college graduates will be asked to submit a CLB score of 5. 

Although PGWP has long been a significant pathway for overseas students to enter the Canadian workforce, the program has lately implemented more rigorous language requirements to ensure that graduates are prepared to engage in the Canadian market.

New regulations are likely to reduce the issuance of 175,000 PGWPs during the next three years.

To better match post-graduate workers with the needs of the Canadian labor market,

Especially in fields where proficiency in English or French is more valued, the government is modifying PGWP standards.

Provincial Attestation Letter :

These days, a Provincial Attestation Letter (PAL) is an essential component of each study permit application for PhD and Master’s degree candidates. Established initially for use by higher education institutions, this measure now helps the government regulate the issuance of study permits by ensuring that all applications are legitimate.

As part of the PAL system, provincial governments can influence the distribution of international students to meet the needs of their respective labor markets.

New Regulations for Spousal Open Work Permits:

It used to be much easier for foreign students’ wives to get an open job immigration and find employment in Canada while their husbands were students. Spouses of undergraduates whose master’s degree programs last sixteen months or more will still be able to apply for spousal work permits, according to the new rules.

There will likely be a reduction of 50,000 spousal work permits granted during the next three years due to this modification. Furthermore, spousal open-employment permits will only be granted to spouses who are not students and who are employed in key industries by people who are nationals or permanent residents of Canada

Reasoning For The Modifications

Concerns on the Job Market:

Concerns about job rivalry and pay suppression have arisen in response to the growth in Canada’s unemployment rate and the influx of temporary foreign workers and international students. Reforms to the PGWP and spousal work permit programs are part of an effort to safeguard Canadian workers by limiting the hiring of foreign students and other temporary residents to industries experiencing a severe lack of qualified candidates.

Quality Immigration:

Spoken language demands for PGWPs have been heightened by the Canadian government to guarantee that international graduates have the requisite language skills to thrive in the country’s escalating labour market. Additionally, these measures are consistent with Canada’s overarching immigration objectives, which include the recruitment of qualified immigrants who can make substantial contributions to the Canadian economy.

Advantages & Disadvantages of New Policies

Pros:

1. Improved Alignment with Labour Market Needs:
The modifications will guarantee that foreign learners and after graduation workers are more adequately equipped to meet the requirements of the Canadian labour market, especially in high-demand sectors.

2. Relief for Living and Public Services:
Reducing the number of international students is expected to ease the strain on housing markets and social services, especially in cities experiencing significant population growth due to student inflows.

3. Enhanced Immigrants System Integrity:
The imposition of the PAL requirement for master’s and PhD students will enhance the verification process, thereby reducing fraud and guaranteeing that only legitimate learners are granted permits.

Cons:

1. Less Opportunities:
Stricter PGWP standards and the cap on study visas may discourage potential students from non-English-speaking countries from applying, as meeting language requirements could be challenging.

2.Family Loneliness:
The new limitations on spousal open permits for employment could make overseas students think twice about bringing their family to Canada, which could put a financial and emotional burden on them.

3. Effects on Colleges and Other Smaller Institutions:
Enrollment of international students may decline at colleges and smaller educational institutions, especially those outside high-demand areas. Many schools rely heavily on tuition payments from overseas students, so this could threaten their financial stability.

Conclusion

As part of a larger effort to manage the influx of short-term residents and make sure immigration keeps meeting the demands of the economy and the labor market, Canada has decided to tighten restrictions on authorization to study caps and PGWP eligibility.

Potential overseas students, especially those from nations where English is not the native language, may find these changes difficult to adapt to, but they hold great promise for addressing critical social and economic problems in Canada, like the country’s housing crisis and its uneven labor market.

Families planning to settle in Canada with an international student or students should give serious thought to these new regulations and make preparations appropriately, especially in regard to the language requirements and the constraints of family settlement programs.