Canada's Immigration Crackdown Cuts International Student Numbers By 60%, Fuels Growing Frustration Abroad
Mumbai: Canada is experiencing a sharp decline in the number of new foreign students and temporary foreign workers entering the country this year, based on the latest statistics released by Immigration, Refugees and Citizenship Canada (IRCC) on Wednesday.
Between January and August 2025, there were 278,900 fewer immigrants who came to Canada than did during the same time in 2024. New international student arrivals fell by nearly 60%, while temporary foreign workers declined by 146,395 over the same period. In August alone, 45,380 international students entered the country.
Why?
Among the major reasons for the decline is the yearly limit on international student study permits, which was initiated in 2024 and then reduced by another 10% in 2025. Acceptance letter verification was also made compulsory in Canada to thwart study permit fraud, and increased financial documentation requirements were put in place to position students for the high cost of living. Temporary foreign worker arrivals also declined sharply.
In August 2025, only 16,890 new workers arrived. The decline is linked to Canada’s decision to limit low-wage hiring to 10% (20% in select in-demand sectors) and stop processing low-wage applications in cities with unemployment rates above 6%. The rules were further tightened when IRCC increased the wage threshold for high-wage roles. In addition, its rules on eligibility for a PGWP were updated to more closely align with the needs of the labour market; spouses of international students and temporary foreign workers now have stricter eligibility for work permits.
Even with the decline in new arrivals, over 139,700 temporary residents became permanent residents from January to August 2025, accounting for approximately half of all new permanent residents in that period. Most had prior Canadian education or work experience and strong language proficiency. They also mostly applied to economic permanent residence programs such as the Express Entry and Provincial Nominee Programs, which are designed around labor market demands.
Indian Students
This decline has not gone unnoticed among international students and prospective applicants. Some expressed frustration and concern over the changing rules, “Honestly, I am not surprised. With all the rule changes and uncertainty related to PGWP, it does not feel worth the risk anymore. They keep calling Canada ‘welcoming’, but every few months, another new restriction arrives. It seems that students are tired of the mixed signals and constant policy shifts.
Others highlighted the financial and practical issues: "I was planning for Fall 2025 but dropped the idea after they increased the financial proof. Rs 25 lakh plus, just for living expenses, is ridiculous. Everyone I know who went last year is already struggling with rent and finding part-time jobs. Now with the work permit rules getting tighter, it’s only getting worse.” Some students already in Canada shared their struggles. “IRCC has made things so confusing, like new caps, new verifications, and new rules every few months.
As someone already studying here, I can say it’s become really tough to survive. Part-time work is hard to find, and rent takes away half your income. I’m glad they’re addressing fraud cases, but genuine students are paying the price too.” Data suggests Canada is now focusing on quality over quantity, aiming to reduce fraud, allocate immigration based on labour market needs, and ensure students are better prepared financially. Yet measures are causing uncertainty for prospective international students and temporary workers, with many either reconsidering or looking elsewhere for higher education and employment opportunities.
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