Why is Canada limiting foreign students and who will be impacted?
Canada Responds to Soaring Foreign Student Numbers with New Policies: Two-Year Cap Unveiled Amid Housing Shortage Concerns
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Canada limiting foreign students
TORONTO, Jan 22 (Reuters) – In response to a surge in foreign student numbers intensifying Canada’s housing shortage, the country has unveiled a two-year cap on student intake.
Government data indicates a substantial increase, with nearly 1 million study permits issued last year, a threefold rise in the past decade. The proposed changes aim to reduce the intake by almost a third. Now, let’s explain the specifics of these new plans and understand what’s at stake.
WHAT’S IN THE PROPOSAL?
Canada’s immigration minister, Marc Miller, has announced a temporary two-year limit on student visas by the Liberal government. This move is expected to lead to the issuance of approximately 364,000 visas in 2024.
The latest suggestions also involve imposing restrictions on post-graduate work permits granted to international students, possibly prompting their return to their home nations.
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Previously considered a straightforward route to obtaining permanent residency, these permits will now see changes. Individuals pursuing master’s or post-doctorate programs will still qualify for a three-year work permit.
Marc Miller mentioned that spouses of international students enrolled in lower-level study programs, such as undergraduate and college programs, will no longer qualify. Additionally, the acceptance of new study permit applications in 2025 will undergo reassessment at the conclusion of the current year.
WHY IS THE GOVERNMENT TAKING A TOUGHER STANCE?
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Canada’s appeal to international students has soared due to the comparatively accessible work permits granted post-education. However, the influx of international students has resulted in a severe scarcity of rental apartments, causing a surge in rents. Statscan reports a nationwide increase of 7.7% in rents from the previous year in December.
The pressing issue of affordability has taken a toll on Prime Minister Justin Trudeau’s popularity. Opposition Conservative Party leader Pierre Poilievre has gained a significant advantage over Trudeau in opinion polls, primarily driven by the affordability crisis. These dynamics unfold as Canada heads towards an election next year.
In addition to the housing crisis, the government is also expressing concerns about the educational quality provided by certain institutions.
WHO WILL FEEL THE IMPACT?
International students play a crucial role in contributing approximately C$22 billion ($16.4 billion) annually to the Canadian economy. This move is anticipated to adversely affect numerous educational institutions that had expanded their campuses with the expectation of a consistent influx of students.
Ontario, the most populous province, has been the primary recipient of international students, and this shift will have significant repercussions. Some industries, including restaurants and retail, warn of potential labor shortages due to the cap on foreign students.
Canada’s restaurants are already grappling with nearly 100,000 job vacancies, and international students constitute 4.6% of the 1.1 million workers in the food service industry as of 2023, as reported by a lobby group to Reuters last week.
Banks in Canada have benefited from the surge in new students, as each student was required to possess a Guaranteed Investment Certificate (GIC) of more than C$20,000—a prerequisite for international students to cover living expenses.
India holds the majority share, contributing about 40% of foreign students, with China following at approximately 12%, based on official data from 2022.
The University of Toronto has expressed its readiness to collaborate with all levels of government to ensure that the distribution of study permits acknowledges institutions like U of T and addresses challenges effectively.
Reporting by Wa Lone in Toronto, with additional reporting by Steve Scherer in Ottawa and Nivedita Balu in Toronto. Writing by Denny Thomas. Editing by Aurora Ellis and Matthew Lewis.