Summary
In a significant shift, new data reveals that the total number of temporary residents in Canada, including international students and foreign workers, has decreased for the first time in several years. Between 2024 and 2025, Canada saw a net reduction of nearly 15,000 temporary residents, a direct consequence of stricter immigration policies implemented by Immigration, Refugees and Citizenship Canada (IRCC).
What Does This Update Mean?
This decline marks a pivotal moment in Canadian immigration strategy. For years, Canada has seen consistent growth in its temporary resident population. This new trend indicates that recent government measures—such as the cap on international student permits and adjustments to the Temporary Foreign Worker Program—are having their intended effect. The focus is shifting from rapid population growth towards a more managed and sustainable approach to immigration. For applicants, this signals a more competitive environment for study and work permits as Canada aims to align the number of temporary residents with the country’s capacity for housing, healthcare, and other essential services.
Who Is Affected?
This policy shift has a wide-ranging impact on various groups connected to the Canadian immigration system:
- Prospective International Students: Face increased competition for study permits due to the national intake cap and the requirement of a Provincial Attestation Letter (PAL). Eligibility for the Post-Graduation Work Permit (PGWP) has also been tightened, particularly for students in certain private college programs.
- Temporary Foreign Workers (TFWs): May find fewer opportunities as the government has reduced the percentage of TFWs that companies in certain sectors can hire through the Temporary Foreign Worker Program.
- Canadian Employers: Businesses that rely on foreign labour may face challenges in filling positions and will need to navigate updated Labour Market Impact Assessment (LMIA) requirements more carefully.
- Recent Graduates: The path from temporary (student) to permanent residence (PR) may become more competitive, placing greater emphasis on securing skilled work and meeting the criteria for programs like Express Entry and Provincial Nominee Programs (PNPs).
Why Are the Numbers Decreasing?
The reduction in temporary residents is not accidental but a result of specific policy changes enacted by IRCC over the last year. Key measures include:
- International Student Cap: A national cap was placed on the number of new study permits issued, significantly reducing the intake of new international students for 2024 and beyond.
- PGWP Eligibility Changes: Students enrolling in programs delivered through public-private curriculum licensing arrangements are no longer eligible for a Post-Graduation Work Permit.
- Adjustments to the TFW Program: The government reduced the validity of LMIAs and lowered the cap on the proportion of low-wage temporary foreign workers that employers in certain sectors can hire.
What Can You Do About It?
Navigating this new landscape requires careful planning and a proactive approach. Here are actionable steps for prospective applicants:
- Stay Informed: Regularly check the official IRCC website for the latest policy updates. The rules are evolving, and staying current is crucial for a successful application.
- Apply Early and Correctly: With increased competition, application timelines may be longer. Ensure your application is complete, accurate, and submitted well in advance of any deadlines.
- For Students: Verify DLI and PGWP Eligibility: Before applying, confirm that your chosen Designated Learning Institution (DLI) is eligible to accept international students and that your specific program qualifies for a Post-Graduation Work Permit.
- For Workers: Target In-Demand Sectors: Focus your job search on sectors and occupations that are in high demand in Canada, such as healthcare, skilled trades, and technology. These fields may have more streamlined pathways through PNPs or specific federal programs.
- Plan Your PR Pathway: If your long-term goal is permanent residence, start planning early. Understand the requirements for Express Entry and explore which Provincial Nominee Program aligns with your skills and work experience.