IRCC introduces stricter study permit limits and updates to PGWP eligibility criteria

Canada's Immigration Minister, Marc Miller, has confirmed that the international student cap is here to stay. Immigration, Refugees, and Citizenship Canada (IRCC) will limit the issuance of study permits to 437,000 in 2025. This reflects a 10% reduction from the 2024 target of 485,000, with a stabilization of the cap in 2026. As a result, IRCC anticipates issuing 300,000 fewer study permits to international students over the next few years.

This cap is part of broader reforms to Canada’s international student program. Minister Miller emphasized that “not everyone who wants to come to Canada will be able to—just like not everyone who wants to stay in Canada will be able to.” He stressed that the immigration system must remain sustainable, aiming to manage it effectively for the future success of newcomers.

Master's and PhD Students Now Require Provincial Attestation Letter

In addition to the cap, master’s and PhD students will no longer be exempt from the requirement to obtain a Provincial Attestation Letter (PAL). The IRCC will reserve approximately 12% of study permit spaces for these students, recognizing their contributions to the Canadian labor market. PALs, introduced earlier for many undergraduate students, help ensure the authenticity of applications and stabilize study permit issuance.

Changes to PGWP Eligibility

Eligibility requirements for the Post-Graduation Work Permit (PGWP) have also been tightened. Starting November 1, applicants must meet new language proficiency standards: a Canadian Language Benchmark (CLB) score of 7 for university graduates and a CLB score of 5 for college graduates. This change is expected to result in 175,000 fewer PGWPs being issued over the next three years.

Limits for Spousal Open Work Permits

Work permits for spouses of master’s degree students will also be restricted to programs lasting at least 16 months. This move is anticipated to reduce spousal work permit issuance by 50,000 over the next three years. Additionally, Spousal Open Work Permits will only be available to spouses of Canadians or permanent residents employed in critical work sectors.

Impact on the Temporary Foreign Worker Program

Rising unemployment in Canada has influenced these measures. The unemployment rate increased by 1.5 percentage points since April 2023, with 1.5 million unemployed people as of August 2024. Minister Randy Boissonnault emphasized that the Temporary Foreign Worker Program (TFWP) should be a last resort and should not replace Canadian workers or suppress wages.

However, with 99% of Canada’s economic growth dependent on immigration—set to rise to 100% by 2032—the country is still reliant on newcomers to fuel its economy.

Broader Changes to Temporary and Permanent Resident Levels

Canada has been adjusting its immigration system throughout 2024. In January, the first-ever cap on study permits was introduced, followed by the PAL system. This cap has been accompanied by stricter PGWP eligibility rules and limits on spousal work permits for students.

In March, Minister Miller announced that for the first time, the 2025-2027 Immigration Levels Plan would include targets for temporary residents. Several other measures have been introduced to curb the influx of temporary residents, including changes to work permits and the end of certain COVID-era policies.

As Canada navigates these shifts, finding the right immigration pathway may become more complex. To explore the best immigration options and connect with experienced immigration consultants, visit immilang.com. They can guide you through the changes and help you achieve your immigration goals in Canada.