Canada has experienced a sharp decline in international student and temporary worker arrivals in 2025, according to recent data from Immigration, Refugees and Citizenship Canada (IRCC).
Between January and October 2025, the country saw a 60% drop in international student arrivals, equating to 153,820 fewer students compared to the same period in 2024. Meanwhile, the temporary worker category fell by 48% or 169,435 fewer arrivals.
As of October 31, 2025, only 484,090 people held a valid study permit in Canada, according to Canada.ca
The IRCC noted that the government is committed to “returning immigration to sustainable levels, including reducing Canada’s temporary population to less than 5%”.
What’s the reason for the sharp decline?
The steep decline is largely linked to Canada’s decision to cap the intake of international students and implement stricter eligibility requirements under the International Student Program.
In early 2024, the federal government set an annual limit of 360,000 study permits nationwide to stabilise growth and ease pressures on housing and infrastructure.
Data shows that study permit issuances fell from 11,360 in September 2025 to just 3,030 in October 2025, highlighting the immediate impact of these measures.
What has Canada done to regulate international student intake?
To further regulate international student inflows, Canada has made acceptance letter verification mandatory to curb fraud and raised financial requirements for applicants to ensure they are better prepared for life in the country. The government has also indicated that additional reductions in student arrivals are planned for 2026–2028 under the Immigration Levels Plan.
Housing shortages, high rents, and limited employment opportunities for international students were key factors behind these reforms. By reducing the number of short-term residents, authorities aim to improve outcomes for both students and host communities.
The decline in international student numbers is compounded by changes to the Post-Graduation Work Permit (PGWP) Program.
Previously, graduates could work in Canada for up to three years after completing their studies, but the updated policy now restricts eligibility to programs and institutions aligned with national immigration and labour priorities.
These combined measures have not only reduced new study permit issuances but also slowed the transition of graduates into the labour market, indirectly contributing to the overall reduction in temporary residents.
