Canada Limits Study Permits, Updates Spousal Work Permits

Canada has announced significant changes to its immigration policies, particularly impacting international students and their families. As of September 18, Immigration Minister Marc Miller revealed new caps on study permits for 2025 and 2026, along with tighter restrictions on spousal work permits. This move follows a similar policy introduced in January 2024, aimed at managing the rising number of international students and reducing pressure on housing and infrastructure.

The new measures will see a limit of 437,000 study permits annually, which is about 10% fewer than in 2024 and 36% fewer than in 2023. For the first time, this cap includes master’s and doctoral students, who were previously exempt. The government expects these changes will result in 300,000 fewer international students in the coming years, helping to ease the burden on Canada's housing and labour markets.

Back in January 2024, Canada introduced its first cap on study permits, reducing the number of new international students allowed into the country by 35% compared to 2023. The goal was to moderate the rapid growth of student numbers and address the associated challenges like overcrowded housing and a strained labour market.

Despite the reduction, Canada will still prioritize certain high-potential students. Of the total study permits issued, 12% will be reserved for graduate students pursuing master’s and doctoral degrees. The government believes these students better align with the country’s economic needs, especially in fields like technology, research, and specialized industries. Graduate students generally have better job prospects and are more likely to stay in Canada after their studies, contributing to the economy.

In addition to reducing study permits, the Canadian government is tightening the rules for spousal work permits. Previously, spouses of international students were often eligible for open work permits, but this is set to change. Now, only the spouses of students in highly specialized fields—such as certain doctoral, master’s, and professional programs—will qualify. This policy aims to limit the number of temporary residents entering Canada through this route. 

Over the next three years, the government estimates 50,000 fewer spousal work permits will be issued. Furthermore, eligibility for spousal work permits will be restricted to specific sectors, like healthcare and construction, where labour shortages are critical. This change is expected to further reduce work permits by 100,000, ensuring that only those in vital industries can benefit.

The impact of the January 2024 cap is already evident. From January to August 2024, Canada saw a 38% drop in international student arrivals compared to the same period in 2023, with 200,000 fewer students entering the country. This decrease has helped alleviate pressure on Canada’s housing and job markets, aligning with the government’s goals to manage infrastructure and employment more effectively.

This new approach marks a significant shift in Canada's immigration policy. International students were previously seen as a crucial pathway to permanent residency, bolstering both the economy and population growth. However, with the new caps, the government is being more selective, aligning immigration with economic needs and workforce priorities. By limiting temporary residents, including students, Canada aims to better manage its capacity to provide housing and jobs.

The Post-Graduation Work Permit (PGWP) program is also being adjusted to match economic priorities, focusing on students in high-demand fields. This flexibility allows the government to tweak these targets based on labour market demands, ensuring that international students contribute to sectors where they are most needed.

These policy changes will make studying in Canada more competitive. As the number of study permits decreases, competition will intensify, especially for students in fields that do not align with Canada’s economic needs. Graduate students, while benefiting from reserved spots, will face challenges, particularly in obtaining spousal work permits.

As Canada tightens its immigration policies, prospective international students will need to carefully consider their options, focusing on high-demand sectors and fields of study. These changes are designed to ensure that only the most skilled and high-potential students are allowed to study and work in Canada, addressing critical economic and infrastructure challenges while maintaining a competitive edge in attracting top talent.