Laura Schemitsch, Canadian Immigration and Refugee Lawyer, Heron Law Offices
In 2023, Canada experienced a dramatic shift in public opinion surrounding immigration. An October 2022 poll by the Environics Institute found that 7 out of 10 Canadians were supportive of immigration levels at the time, the largest majority recorded by Environics in 45 years. In stark contrast, a November 2023 poll by Leger indicated that 75% of Canadians believe immigrants are contributing to the housing crisis and putting pressure on the health care system. In the last quarter of 2023, anti-immigrant, and in particular, anti-international student sentiments were noticeably on the rise.
According to the Environics Institute, Canada’s population rose by more than 1 million people in 2022 with immigration accounting for “virtually all of Canada’s net labour force growth.” The need for immigration is largely due to Canada’s aging population, with 5 million Canadians set to retire by 2030. A 2023 report by Desjardins’ Senior Director of Canadian Economics, argues that Canada needs even more immigrants to counter its aging population and the federal government must “marry immigration policy with immediate action to increase the housing supply.”
Despite the importance of immigration for Canada’s longevity, recent reports reveal waning support for immigration amongst Canadians. Unfortunately, international students appear to have become scapegoats in the media and subsequently in public opinion with regards to Canada’s housing crisis. It is worth noting that international students contribute over $22.3 billion per year to the Canadian economy, which is greater than exports of auto parts, lumber, or aircraft.
It was not surprising then, on January 22, 2024, when the Government of Canada announced substantial changes to Canada’s international student program including a two year cap on applications in response to the “housing crunch.” In 2024, the cap is expected to result in approximately 360,000 approved study permits which represents an intake decrease of 35%. The 2025 gap is set to be assessed at the end of this upcoming year. The announcement has been met with both support and criticism for “blaming immigrants for bad policies.”
Various important changes to the International Student Program are outlined below:
New Provincial Attestation Letter (PAL)
On January 22, 2024, IRCC announced that every study permit application submitted to IRCC would also require an attestation letter from a province or territory. Provinces and territories were expected to establish a process for issuing these letters by March 31, 2024. IRCC will return any application received that does not include a PAL, unless otherwise exempt.
On January 30, 2024, Universities Canada and CIC Canada sent a joint letter to Minister Miller to convey their “significant concern” regarding the caps to the International Student Program. The letter urged IRCC to hold off on imposing the PAL requirement for college and undergraduate study permit applications until at least March 31, 2024, or until the provinces establish effective processes and to consult with the sector to mitigate the negative impacts of the policy with Canada’s global reputation as a top education destination “at stake”:
Our foremost concern is the moratorium on processing new international student study permits, especially for college and undergraduate students. This sudden halt while provinces establish attestation systems is already impacting enrollments. The absence of a pre-existing process in most provinces compounds the issue, hindering eligible students from obtaining study permits. Faced with uncertainty, these students are likely to choose alternative destinations, posing a significant risk to Canada’s post-secondary sector and hindering our efforts to attract global talent for years to come.
The potential consequences are difficult to overstate. The cap will have far-reaching effects on Canadian communities, given that international students play a pivotal role in bolstering the economy by contributing over $22 billion a year to our country. Their contributions are vital in sustaining local labour markets, increasing diversity and meeting the demands of high-growth sectors. The policy’s impact extends far beyond institutions, affecting businesses and communities.
On February 5, 2024, IRCC provided further updates to the PAL:
Who needs a provincial attestation letter?
- most post-secondary study permit applicants
- most non-degree granting graduate programs (for example, certificate programs and graduate diplomas)
- anyone else not included in the exception list below
Who doesn’t need a provincial attestation letter?
- primary and secondary school students
- master’s or doctoral degree students
- visiting or exchange students
- in-Canada study permit and work permit holders (includes study permit holders applying for an extension)
- in-Canada family members of study permit or work permit holders
- students whose application we received before 8:30 a.m. ET on January 22, 2024
Changes to Minimum Funds Needed to Support Yourself as a Student (And Family Members Who Come With You)
Prior to January 1, 2024, a student was required to demonstrate that they had a minimum of $10,000 CAD, not including tuition and transportation fees, per year to support themselves while studying in Canada.
On December 7, 2023, IRCC announced the minimum funds required for a single applicant to study in Canada as of January 1, 2024, in addition to first year tuition and travel costs, would more than double to $20,635 CAD.
Changes to the Eligibility Criteria for Post-Graduation Work Permits (PGWP)
A PGWP is an open work permit which enables international graduates to work for any employer and gain the skilled work experience needed to apply for permanent residence in Canada.
- Starting in September 2024, international students who begin a study program that is part of a curriculum licensing arrangement will no longer be eligible for a postgraduation work permit upon graduation;
- Graduates of master’s degree programs will soon be eligible to apply for a 3 year work permit (under current criteria, the length of a postgraduation work permit is based solely on the length of an individual’s study program, hindering master’s graduates by limiting the amount of time they have to gain work experience to potentially transition to permanent residents). On February 5, 2024, IRCC announced the 3 year PGWP will be available to graduates from a master’s degree program that is less than 2 years in length
- It was also announced that the temporary policy to provide an additional 18 month work permit to post-graduation work permit holders would not be extended.
20 Hour Work Week Cap Extended
In November 2022, IRCC temporarily lifted the 20 hour per week work cap for international students permitted to work off campus while in session. Given the high costs of international student tuition and rising costs of living, the changes have undoubtedly had significant impacts on international students across Canada. In fact, IRCC is reportedly assessing the impact of the policy to determine whether it should be extended or expanded upon. Some international students and advocates have called on the Government of Canada to permanently lift the 20 hour work week cap to provide stability due to rising living costs.
On December 7, 2023, Minister Miller announced that the 20 hour per week cap was extended until April 30, 2024 and that the government was considering a 30 hour per week limit.
Changes to Open Work Permit Eligibility for Spouses
Another significant policy change impacting international students is that open work permits for spouses (available through the International Mobility Program-LMIA exemption code C42) will only be available to the spouses of international students in master’s and doctoral programs. Spouses of international students in other levels of study, including undergraduate and college programs, will no longer be eligible. This is a significant departure from the current eligibility criteria and will undoubtedly have deep impacts on international students and their families.
The Importance of Challenging Anti-Immigration Sentiments in Canada
Amidst suggestions that Canada’s housing crisis means immigration needs to slow down, a more effective approach involves Canada improving its immigration system to facilitate the entry of immigrants needed to resolve labour shortages and increase the housing supply. While efforts to target “bad actors” in the International Student Program such as fraudulent recruiters and “for profit colleges” are welcome, international students provide significant economic benefit to Canada and facilitating the entry of international graduates into Canada’s skilled labour force is essential for this country’s economic future. Using international students as scapegoats is misguided and may ultimately have negative impacts on Canada’s reputation as a top destination for international students. Improving Canada’s immigration system is particularly important in light of a February 2024 report by Statistics Canada which indicates that more than 15 per cent of immigrants decide to leave Canada and return to their homeland or migrate to another country after becoming permanent residents.
It is in Canada’s best interests for the government to continue to advocate for the crucial benefits of immigration and policies that align with Canada’s long-term economic goals. Maintaining clear communication is essential to counteract the negative impact of misguided anti-immigrant sentiments and the integrity of Canada’s immigration system. A properly functioning immigration system is critical to attracting and retaining foreign students and workers, particularly in the construction and health sectors, and preventing onward migration. Canada cannot afford to lose more workers and it is, therefore, necessary to promote a more transparent and efficient immigration system that will bring, educate, train, and retain skilled foreign workers to address labour shortages experienced by Canadian employers, supporting Canada’s economic and social longevity.
