September 17, 2025
Canada Sees Major Drop in International Students and Foreign Workers in 2025
Canada’s immigration landscape is shifting dramatically. According to new data from Immigration, Refugees and Citizenship Canada (IRCC), the country welcomed far fewer international students and temporary foreign workers in the first half of 2025 compared to the same period in 2024.
This decline reflects the government’s broader strategy to slow the growth of temporary residents and bring immigration levels into closer alignment with long-term economic and population planning.
Sharp Decline in New Temporary Residents
Between January and June 2025:
- International student arrivals fell by 70%, representing 88,617 fewer students than the same period last year.
- Work permit arrivals fell by 50%, with 125,903 fewer workers entering Canada.
Combined, this marks a decrease of over 214,000 fewer new temporary residents in just six months.
Shift in the Balance: More Workers, Fewer Students
The data also shows a change in the composition of new arrivals:
- From February to June 2025, nearly 80% of all newcomers were work permit holders, compared to an average of 70% in 2024.
- International students now make up a smaller proportion of arrivals, reflecting recent policy changes such as the study permit cap and higher financial requirements for applicants.
While the fall and winter semesters traditionally bring more student arrivals (August and December peaks), this downward trend aligns with Canada’s new immigration priorities.
Population Trends Among Temporary Residents
Although fewer newcomers are entering Canada, many who were already here have transitioned between permit types:
- Study permit holders declined by 133,325 between January 2024 and June 2025.
- Work permit holders increased by 262,262 during the same period, largely due to graduates moving onto Post-Graduation Work Permits (PGWPs).
- Dual permit holders (those with both a study and work permit) dropped slightly by about 32,000.
Overall, the number of temporary residents actually rose by 137,851, reaching 2.36 million by June 2025. However, Canada’s temporary resident population has been trending downward since its August 2024 peak of 2.44 million, as departures now outpace new arrivals.
Why the Decline? Key Policy Changes
IRCC has introduced a series of reforms since 2024 to curb the rapid rise of temporary residents. These include:
For International Students
- Study permit caps across provinces and territories.
- Higher cost-of-living requirements to prove financial readiness.
- Stricter eligibility for Post-Graduation Work Permits (PGWPs).
For Foreign Workers
- A moratorium on low-wage LMIAs in regions with unemployment above 6%.
- Wage increases for high-wage stream LMIA jobs.
- Ending pandemic-era flexibility allowing visitors to transition to work permits.
- Restrictions on Spousal Open Work Permits (SOWPs) for spouses of students and workers.
- A ban on flagpoling, preventing same-day processing of applications at the border.
- Multi-year targets to gradually reduce new work permit issuances under both the International Mobility Program (IMP) and Temporary Foreign Worker Program (TFWP).
Temporary Residents in Canada’s Immigration Levels Plan
For the first time, Canada’s Immigration Levels Plan (announced in October 2024) now includes targets for temporary residents, not just permanent residents.
The goal: reduce temporary residents from 7% of Canada’s population to 5% by the end of 2026.
This represents a major policy shift, as international students and foreign workers have historically played a key role in fueling Canada’s labour market and permanent residency streams.
What This Means for Students, Workers, and Employers
- Students: Applying for a study permit is now far more competitive, with limited caps and stricter financial rules. Those admitted may have stronger pathways to work and PR but face more hurdles upfront.
- Workers: Job offers and LMIAs must meet higher standards, making work permits harder to secure. Skilled and high-demand roles will be prioritized.
- Employers: Businesses relying on temporary foreign workers must plan ahead, ensure LMIA compliance, and explore long-term recruitment solutions.
How MyWorld Immigration Can Help
At MyWorld Immigration, we guide students, workers, and employers through these fast-changing rules with expert legal and strategic advice.
✅ Study Permits & PGWPs – Maximize your chances of approval under the new stricter rules.
✅ LMIA & Work Permits – Full support for employers and workers navigating TFWP and IMP requirements.
✅ Permanent Residency Pathways – Transition from temporary status to PR through Express Entry, PNPs, and family sponsorships.
✅ Compliance & Strategic Planning – Helping employers and families stay ahead of evolving immigration policies.
Final Thoughts
Canada’s immigration system is entering a new era where temporary resident numbers are being scaled back to achieve balance and sustainability. While this creates new challenges, it also ensures that those who come to Canada have stronger long-term opportunities to succeed.
If you’re a student, worker, or employer navigating these changes, MyWorld Immigration is here to help you build the right pathway.
WhatsApp: +1-672-399-0000
Website: www.myworldimmigration.com
Email: info@myworldimmigration.com
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