Commonwealth_ Canada has a long-standing tradition of welcoming newcomers from across the globe, recognizing their crucial role in supporting the economy and enriching society. In recent years, the federal government has responded to labor shortages and the lasting impacts of the pandemic by implementing measures to meet the urgent needs of businesses and aid economic recovery. However, as Canada’s economy evolves, so must its immigration policies. A key challenge now is addressing a softening labor market, and in response, the government is adjusting its approach to immigration.
Earlier in 2024, Immigration, Refugees and Citizenship Canada (IRCC) announced plans to reduce the number of temporary residents, lowering their share of the population from 6.5% to 5% by 2026. This reduction is aimed at ensuring a more balanced immigration system that aligns with current labor market conditions. To achieve this target, the federal government is taking steps to manage the growth of temporary resident numbers and hold accountable those who misuse the system.
Significant reforms have been introduced in the International Student Program to ensure that those entering Canada can be properly supported. Eligibility requirements for temporary foreign workers have also been tightened, and stricter enforcement of employer compliance is underway. Labor market impact assessments (LMIA) are now more rigorous, aiming to mitigate fraud and ensure that the system works effectively for both employers and temporary residents.
In tandem with these efforts, Canada is addressing the rising volume of asylum claims as the global population of displaced people grows. These claims contribute to the increasing number of temporary residents. As part of Canada’s humanitarian responsibilities, the government has been working on several initiatives to address integrity issues and strengthen the in-Canada asylum system. Among these measures is the implementation of partial visa requirements for Mexican nationals, a reflection of the need to manage volumes while upholding fairness and transparency.
The planned reduction in temporary residents will be reflected in the 2025–2027 Immigration Levels Plan, set to be released by November 1, 2024. In this context, the Post-Graduation Work Permit (PGWP) program has also seen adjustments. Graduates from public colleges will continue to be eligible for a work permit of up to three years, but only if their field of study is linked to occupations facing long-term shortages. Additionally, a new requirement for PGWP applicants mandates minimum language proficiency in either French or English. University graduates will need a Canadian Language Benchmark (CLB) level 7, while college graduates will require CLB 5. These language requirements, effective November 1, 2024, aim to better equip graduates to transition to permanent residency and adapt to evolving economic conditions. Another significant change involves the introduction of a cap on the intake of master’s and doctoral students in the 2025–2026 academic year. These students will need to submit attestation letters from provincial or territorial authorities, and approximately 12% of allocation spaces will be reserved for them. This recognizes the value these students bring to Canada’s labor market.
On January 1, 2024, updates were made to the cost-of-living requirement for study permit applicants to reflect more accurately the real cost of living in Canada. This change aims to prevent the exploitation and vulnerability of international students, ensuring that they are adequately prepared to support themselves during their stay. These actions, alongside ongoing efforts, will reinforce Canada’s immigration system, ensuring it remains robust, adaptable, and fair. The federal government is committed to addressing the country’s changing needs while continuing to listen to Canadians, including provincial, territorial, and municipal partners, and community leaders. This collaborative approach will help protect the integrity of the system while responsibly supporting Canada’s growth and economic recovery.
