Canada has witnessed a major decline in the number of new international students and temporary foreign workers arriving in the country this year. According to the Immigration, Refugees and Citizenship Canada (IRCC), there were 278,900 fewer arrivals between January and August 2025 than during the same period in 2024.
Over 1.3 Lakh Fewer International Students This Year
The data revealed that 132,505 fewer international students arrived in Canada in 2025 compared to last year. In August alone, 45,380 new students entered the country. The drop follows Canada’s decision to impose an annual cap on study permits in 2024, followed by a further 10% reduction in 2025.
Additionally, stricter measures such as mandatory acceptance letter verification and higher financial requirements have made it harder for students to qualify for study permits. These steps were introduced to curb fraud and ensure students are financially prepared.
Worker Arrivals Down by Over 1.4 Lakh
The IRCC data also shows a sharp fall in temporary foreign worker entries, with 146,395 fewer arrivals between January and August 2025. Canada has imposed a 10% cap on low-wage hiring, with exceptions of up to 20% in specific high-demand sectors.
Applications for low-wage jobs are no longer processed in cities with unemployment above 6%, and minimum wages for high-wage positions have been raised.
Government Targets Lower Temporary Resident Numbers
The Canadian government has signaled that it wants to reduce the number of temporary residents to align with labour market goals. It also tightened eligibility for Post-Graduation Work Permits (PGWP) and spousal work permits.
However, IRCC noted that the full effects of these measures will take time, as older applications are still being processed under previous rules. Interestingly, 139,700 temporary residents became permanent residents between January and August 2025, accounting for half of all new PRs during the period.
