Announcement of Plans to Reduce Temporary Residents

Key Summary

• ▶ The Canadian government plans to reduce temporary residents to 5% of the total population by 2026.
• ▶ Eligibility requirements for international student programs and temporary foreign workers are being strengthened.
• ▶ The issuance limit for international student study permits will be reduced in 2025 and 2026.
• ▶ Measures are being taken to enhance the asylum system and strengthen visa integrity.
• ▶ Language proficiency requirements will be added to the PGWP program.

Announcement of Plans to Reduce Temporary Residents

The Canadian economy is highly dependent on the labor force of immigrants and foreign workers. Particularly, population decline and labor shortages are long-term challenges, not temporary phenomena. In response to the aftermath of the pandemic, the federal government had taken temporary measures to attract temporary residents and immigrants to meet urgent needs and support economic recovery. Since then, Canada's economy has entered a new phase post-pandemic, and new regulations are being announced to restore the relaxed rules during the pandemic and address the side effects caused by the surge in temporary residents.

 

Earlier this year, Immigration, Refugees and Citizenship Canada (IRCC) announced plans to reduce the number of temporary residents from 6.5% to 5% of Canada's total population by 2026. To achieve this, the federal government is taking steps to manage the increase in temporary residents and hold employers accountable who misuse the system. The Canadian government is particularly undertaking major reforms in the international student program first, subsequently strengthening eligibility requirements for temporary foreign workers, and showing determination to prevent system misuse by more strictly enforcing employer compliance and enhancing Labor Market Impact Assessments.

 

Immigration Minister Marc Miller announced additional measures on September 18 to manage the influx of temporary residents and maintain the reasonable operation of the immigration system to ensure temporary residents receive appropriate support. The main contents are as follows:

• ▶ Reduce the issuance limit of international student study permits by about 10% from the 2024 target of 485,000 to 437,000 for the next two years, 2025 and 2026.
• ▶ Update the Post-Graduation Work Permit (PGWP) program this fall to better align with immigration goals and labor market needs.
• ▶ From the end of this year, limit the eligibility for work permits for spouses of master's degree students to those whose programs are at least 16 months long.
• ▶ From the end of this year, limit work permits in Canada's work permit programs to those working in managerial or professional occupations or in fields with labor shortages.

 

Like many other countries in Europe, Canada is experiencing an increase in asylum seekers as the number of refugees continues to rise globally, contributing to the increase in temporary residents. The government is proceeding with several measures to fulfill humanitarian responsibilities while strengthening the asylum system within Canada. These include:

• ▶ Introducing partial visa requirements for Mexican nationals.
• ▶ Improving asylum application processing as announced in 2024, maintaining the fairness and integrity of the system.
• ▶ Reviewing visa decision methods to detect fraud and reduce the number of non-genuine visitors.
• ▶ Exploring additional measures to further strengthen visa integrity.

Key Facts:

The proposal to reduce temporary residents from 6.5% to 5% of Canada's total population will be reflected in the 2025–2027 immigration plan, which is scheduled to be announced by November 1, 2024.

 

Graduates of public university programs can receive up to a 3-year PGWP if they graduate in fields connected to long-term shortage occupations.

 

Under changes to the PGWP program, all applicants must demonstrate minimum language proficiency in French or English. This is to help them transition to permanent residency and adapt to changing economic conditions. All those applying for a PGWP after November 1, 2024, will be required to have a Canadian Language Benchmark (CLB) level 7 for four-year university graduates and CLB 5 for two-year college graduates.

 

The study permit intake limits for 2025–2026 include master's and doctoral students, who must submit certificates issued by the province or territory. Recognizing these students' contributions to the Canadian labor market, about 12% of the total quota will be allocated to them.

From January 1, 2024, the living expense requirements for study permit applicants will be updated to better reflect the actual cost of living in Canada, which is a measure to prevent vulnerability and exploitation of students.

 

The 2024 budget proposes $743.5 million over five years starting in 2024–2025, and $159.5 million ongoing thereafter, to support the stability and normal operation of Canada's asylum system.

 

These changes can be interpreted as measures by the Canadian government to reduce the number of foreign workers and protect the employment of its citizens. However, many recognize that these policies are not solely aimed at reducing the number of immigrants but also involve political reasons. With the Liberal Party's approval ratings plummeting, analyses suggest that the Canadian government is making political gestures aimed at voters. Amid widespread dissatisfaction from self-employed individuals complaining of labor shortages, there remains the possibility that policy directions may change drastically after the election.