In 2024, Canada saw pivotal shifts in its temporary residence policies, significantly affecting international students and work permit holders. These changes, aimed at balancing economic demands, population growth, and infrastructure capacities, brought notable adjustments to the programs. PL Immigration reviews the key developments regarding study permits, international students, and work permits throughout the year.
Study Permits: A Year of Regulation and Restriction The issuance of study permits in Canada experienced a sharp decline in 2024, with only 447,035 permits granted by October—a 35% drop compared to 2023. This reduction is part of a strategic two-year cap on international student permits to alleviate housing and infrastructure burdens. The government plans to further decrease study permits by 10% in 2025, capping the number at 437,000.
Updates for International Students Several significant policy shifts were introduced for international students, including tighter financial criteria and revised work regulations:
- Work Hour Limits: International students are now allowed to work up to 24 hours per week off-campus during academic terms, a slight increase from the pre-pandemic cap of 20 hours but less than the unlimited hours permitted during the COVID-19 period. Full-time employment is still allowed during official breaks.
- Increased Financial Requirements: The Guaranteed Investment Certificate (GIC) now requires an investment of $20,635, doubling the previous requirement. This update follows the1381Title: 2024 Changes in Canada’s Temporary Residence Programs
Canada’s temporary residence policies underwent major shifts in 2024, significantly affecting international students and work permit holders. In response to the need for a balanced approach to economic demands, population growth, and infrastructure pressures, the federal government introduced essential changes to temporary residence programs. This analysis by PL Immigration explores the key updates in study permits, international student regulations, and work permits for the year.
Study Permits: New Regulations and Restrictions
In 2024, Canada saw a notable decline in study permit issuances, with numbers dropping to 447,035 by October—representing a 35% decrease from 2023. This reduction is part of a newly established two-year cap on these permits aimed at alleviating housing and infrastructure stress. The government plans an additional 10% reduction in 2025, bringing the cap down to 437,000 permits.
Changes for International Students
Significant updates for international students included stricter financial standards and modified work regulations:
Adjustments to Work Hours: Students are now allowed to work up to 24 hours per week off-campus during academic sessions. This is an increase from the pre-pandemic 20-hour limit but less than the unrestricted hours that were temporarily permitted during the COVID-19 period. Full-time employment remains allowed during scheduled vacations. Increased Financial Requirements: The Guaranteed Investment Certificate (GIC) threshold has risen to $20,635, twice the former level, reflecting Canada’s higher cost of living, but creating potential hurdles for students from low-income nations. Restrictions on Post-Graduation Work Permits (PGWP): Starting in November 2024, PGWPs will only be granted to graduates of public colleges in fields linked to labor market shortages, although bachelor’s, master’s, and doctoral graduates will still qualify regardless of their study area. Spousal Open Work Permit (SOWP): The spouses of students pursuing master’s programs are now eligible for work permits only if the program lasts at least 16 months.
Effects on International Students
The new regulations are designed to strengthen the integrity of academic programs and address housing shortages, but they present notable obstacles as well. Tougher financial criteria and fewer available permits might discourage students from countries with lower income levels. Critics argue that these changes could damage Canada’s standing as a premier destination for education, possibly resulting in the loss of potential talent to nations like the U.S. and the U.K.
Post-Graduation Work Permit (PGWP) Issues
In the next 15 months, over 200,000 Post-Graduation Work Permits are set to expire, escalating the competition for permanent residency. International students often depend on these permits to obtain essential work experience for permanent residency eligibility. However, with more stringent immigration laws and limited PR quotas, countless students may find themselves in uncertain circumstances, including the risk of deportation.
The upcoming expiration of these permits highlights the urgent need for clearer pathways to permanent residency, such as increasing the quotas or extending the duration of permits. Without these measures, Canada may lose skilled graduates who play vital roles in its economy and community.
Work Permits: Stricter Guidelines for Employers and Foreign Workers
The issuance of work permits under the International Mobility Program (IMP) and the Temporary Foreign Worker Program (TFWP) has shown notable figures in 2024:
- IMP Permits: By October, 627,460 permits have been granted, reflecting a decline from the 762,905 issued in 2023.
- TFWP Permits: By October, 162,100 permits were allocated, decreasing from 183,530 in 2023.
Revisions to the Temporary Foreign Worker Program
The TFWP has been updated with several critical changes to tackle labor shortages while safeguarding Canadian workers:
- Low-Wage Stream Limitations: A new 10% limit on the employment of low-wage temporary foreign workers has been introduced, allowing for exceptions in sectors like healthcare, construction, and food processing, which have a 20% cap. Labor Market Impact Assessments (LMIAs) for low-wage positions are now valid for just one year. Applications will not be processed in regions with unemployment rates exceeding 6%, except for particular sectors.
- Increased Wage Requirements: High-wage temporary foreign worker roles now demand salaries at least 20% above the provincial median wage, resulting in a reclassification of 34,000 jobs from high-wage to low-wage categories.
- Montreal Processing Suspension: The processing of LMIAs for low-wage positions in the Greater Montreal area has been suspended for six months to emphasize hiring local workers.
International Mobility Program Modifications
The International Mobility Program, which supports permits exempt from LMIAs, has tightened regulations regarding intra-company transferees. Employers are now required to verify the legitimacy of their business through revenue-generating activities and demonstrate a valid connection with the foreign parent company. Businesses operating virtually or from residential locations are no longer eligible.
Economic and Social Effects of New Immigration Policies
Pressure on the Labor Market
Tighter regulations for work permits and study permits may intensify labor shortages in key sectors like healthcare, technology, and engineering. Temporary residents, such as international students and foreign workers, have been essential in plugging these gaps in Canada. Reducing their numbers could stifle economic growth and competitiveness.
Balancing Growth with Infrastructure Needs
Canada’s strategy to manage temporary residency is designed to reduce stress on housing, resources, and public services. Cutting back on international students and temporary foreign workers might improve housing availability and lessen overcrowding in cities.
Institutional Challenges
Colleges and universities heavily dependent on international tuition fees are at financial risk due to reduced student numbers. This could lead to program closures, staff layoffs, and fewer services, particularly in provinces where international enrollment, like Ontario, is highest.
Navigating Changes in Canada’s Temporary Resident Programs
Canada’s temporary residence policies for 2024 mark a shift toward more stringent regulation and sustainability. While the government aims to align economic needs with infrastructure capacity, these changes pose challenges for international students, workers, and educational institutions.
The success of Canada’s temporary residence strategy depends on adapting to changing demands. By enhancing pathways to permanent residency, supporting education sectors, and addressing labor gaps, Canada can continue to appeal to global talent.
New Work Hour Regulations for International Students in Canada
As of 2024, international students in Canada can now work up to 24 hours a week off-campus during school terms. This limits work time to ensure students can remain focused on their academics. During scheduled breaks like summer or winter holidays, students are allowed to work full-time without needing an extra work permit.
Alterations to Study Permit Rules in 2024
In 2024, Canada implemented a 35% reduction in the number of study permits issued, with an additional 10% reduction set for 2025. Financial prerequisites, such as the Guaranteed Investment Certificate (GIC), have increased to $20,635, and stricter rules for designated learning institutions (DLIs) now help maintain program integrity.
Impact of New Post-Graduation Work Permit (PGWP) Rules
Canada has introduced stricter regulations for the Temporary Foreign Worker Program (TFWP) in 2024, including a 10% limit on low-wage workers for employers (20% in specific industries), tougher wage requirements for high-wage positions, and a halt on low-wage LMIA applications in Greater Montreal. These measures are designed to prioritize Canadian workers and protect temporary foreign workers.
Differences Between the International Mobility Program and the TFWP
The International Mobility Program (IMP) allows employers to hire foreign workers without needing a Labor Market Impact Assessment (LMIA). It supports categories like Intra-Company Transferees and issues work permits aligned with Canada’s economic, social, or cultural interests. Conversely, the TFWP requires LMIA approval to show that no Canadian workers are available for the job.
Educational Institutions’ Response to Reduced Study Permits
Institutions that rely on international tuition income are experiencing financial difficulties due to fewer study permits. Some anticipate program cuts, staff layoffs, and reduced student services. Provinces such as Ontario and British Columbia are reevaluating their enrollment strategies to match new policy requirements.
Long-term Consequences of Policy Changes in Canada
These revisions are intended to balance temporary residency with infrastructure constraints. Although they may alleviate housing and resource pressures, stricter regulations could discourage international students and workers, affecting critical industries like healthcare and technology. Canada needs to adapt to maintain its global competitiveness.
