Canada has long been a global magnet for international students, temporary foreign workers, and asylum seekers. However, recent policy changes aim to curb the number of temporary residents entering the country, marking a significant shift in the country’s immigration strategy. These new measures come in response to housing shortages, inflation, and concerns about labour market dynamics.
Why Is Canada Reducing Temporary Residents?
In 2023, temporary residents accounted for approximately 6.2% of Canada’s population, which translates to about 2.5 million people. The federal government, under the leadership of Immigration Minister Marc Miller, aims to reduce this number to 5% by 2027, a drop of roughly 500,000 people. This reduction targets specific groups, including international students and temporary foreign workers, as part of a broader effort to address labour market and housing pressures.
According to Minister Miller, while temporary residents contribute significantly to the economy, unchecked growth in their numbers has exacerbated housing affordability issues and placed strain on public services. The new measures are part of a strategy to ensure that Canada’s temporary residency programs are both sustainable and beneficial to Canadian society.
Canada announces new measures to reduce temporary residents
Canada’s new measures to reduce temporary residents aim to address pressing concerns about housing affordability, labour market pressures, and immigration system integrity. While these changes will likely stabilize housing markets and ease inflation, they also bring challenges for sectors that rely on international talent and temporary foreign workers. As Canada seeks a more sustainable approach to immigration, the country will continue to welcome permanent residents, while imposing tighter controls on those seeking temporary residency.
| Category | New Measures | Current Figures | Target for 2027 |
|---|---|---|---|
| International Students | 10% cap reduction on study permits starting 2025, with a focus on controlling intakes by private institutions. | 485,000 permits in 2024 | 437,000 permits |
| Temporary Foreign Workers | New restrictions on firms’ ability to hire foreign workers, except for healthcare and construction sectors. | High reliance in various sectors | Gradual reduction |
| Total Temporary Residents | Reduction in overall percentage of temporary residents from 6.2% to 5% of Canada’s population by 2027. | 2.5 million residents (2023) | 5% of total pop. |
Impacts on International Students
One of the most significant changes affects international students, who represent a large portion of Canada’s temporary residents. Starting in 2025, the government will cap the number of study permits issued at 437,000, down from 485,000 in 2024. Additionally, for the first time, master’s and doctoral students will be included in this cap, a move intended to prevent institutions from inflating numbers for financial gain without providing adequate support for these students.
Private institutions are particularly under scrutiny. Beginning in 2024, international students attending non-accredited private institutions will no longer be eligible for post-graduation work permits. This change addresses concerns about the quality of education and the rapid increase in international students enrolling in these programs. The new measures aim to ensure that students have the necessary resources for success, both academically and in their transition to the Canadian labour market.
For provinces like Ontario and British Columbia, which have experienced the highest growth in international students, the reductions will be more significant. These provinces will need to curtail their intakes more than others to align with national goals.
Changes to the Temporary Foreign Worker Program
Another focal point of the new immigration strategy is the Temporary Foreign Worker Program (TFWP). This program, which allows Canadian employers to hire foreign workers for positions that cannot be filled by local workers, is also undergoing reform. Companies in sectors like agriculture, hospitality, and retail will face stricter guidelines and shorter timeframes to prove that Canadian workers are unavailable to fill these roles. However, exemptions will be maintained for healthcare and construction, sectors that are still grappling with severe labour shortages.
By limiting access to temporary foreign workers, the government hopes to encourage Canadian employers to focus on training and hiring local talent. While this change is expected to relieve pressures on housing and public services, it may also slow economic growth, particularly in industries heavily reliant on foreign labour.
Impact on Housing and the Economy
One of the primary drivers behind these policy changes is Canada’s ongoing housing affordability crisis. The sharp increase in temporary residents has contributed to rising rents and property prices, particularly in major cities like Toronto and Vancouver. By reducing the number of international students and temporary workers, the government aims to ease demand for housing and alleviate pressure on the rental market.
Economists are forecasting that these immigration caps could lead to slower population growth in Canada, which has surged in recent years due to high levels of immigration. A reduction in temporary residents could help stabilize rents and service inflation, but it may also hurt economic growth. With fewer people entering the workforce, sectors that rely on temporary labour may face increased challenges.
Frequently Asked Questions (FAQs)
Q: How will this affect international students already studying in Canada?
A: Students currently studying in Canada will not be directly affected by the new cap on study permits, but those attending non-accredited private institutions may lose eligibility for post-graduation work permits starting in September 2024.
Q: Will these measures reduce Canada’s overall immigration levels?
A: No, these measures target temporary residents, not permanent residents. Canada continues to welcome permanent residents through programs like Express Entry and the Provincial Nominee Program.
Q: What sectors are exempt from the new Temporary Foreign Worker restrictions?
A: The healthcare and construction sectors will be exempt from new restrictions on hiring temporary foreign workers due to ongoing labour shortages.
Q: How will these changes impact housing prices in Canada?
A: Reducing the number of temporary residents, particularly in major urban centers, is expected to help stabilize housing prices and rents, though the full impact will take time to materialize.
Q: Are asylum seekers affected by these new measures?
A: Yes, Canada has introduced new visa requirements for asylum seekers, especially for Mexican nationals, to reduce the number of unqualified claims.
