Question Period Note: Temporary resident reduction

Measures to stabilize temporary resident intake.

• Temporary residents enrich Canada’s economic, and cultural fabric, but we must adapt our immigration system to our country’s needs.
• A more well-managed and comprehensive approach that aligns with the needs of our labour market, housing supply, community capacity, and humanitarian commitments is necessary.
• That is why over the last few months IRCC has announced several measures to stabilize, and enhance the integrity of our temporary immigration system.
• For the first time, the 2025-2027 Immigration Levels plan includes targets for temporary residents, like students and workers to help achieve a reduction to 5% of the overall temporary population by the end of 2026.
• We are achieving this target through measures such as the study permit cap and tightening eligibility requirements under the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP).
• Changes that we have made to date, as well as additional steps we are taking, will help strengthen our immigration system.

Responsive (if pressed on measures)
Work on these measures has already begun and includes:
• Implementing an intake cap on study permit applications;
• Raising the cost-of-living financial requirement for study permit applicants to ensure that international students are financially prepared for life in Canada;
• Introducing a letter of acceptance (LOA) verification system to protect students from fraud;
• Restricting eligibility for post-graduation work permits and ending flagpoling;
• Restricting work permit eligibility for spouses of students and workers;
• Introducing a partial visa requirement for Mexican citizens; and,
• reviewing visa decision-making to ensure that officers have the right tools to detect fraud and reduce the number of non-genuine visitors.

Additional measures include:
Temporary Foreign Workers:
• ending a temporary public policy that allowed visitors to apply for and receive a work permit from within Canada;
• adopting stricter rules for the processing of Labour Market Impact Assessments (LMIAs);
• limiting work permit eligibility to spouses of foreign workers in management and professional occupations, or jobs linked to shortage sectors and other government priorities;
• limiting work permit eligibility to spouses of international students in master’s programs of 16 months or more in duration, doctoral programs, certain professional programs, and select pilot programs; and
• increasing compliance rules for employers and reviewing regulations to further strengthen the employer compliance regime.

International Students:
• extending the study permit application intake cap through 2026 and removing exemptions for most in-Canada study permit applicants as well as creating a separate cap allocation for graduate students; and
• updating the Post-Graduation Work Permit Program to better align with immigration goals and labour market needs.

Responsive (if pressed on expected volume reductions and 2025 targets)
• Existing and future temporary resident management measures, as well as permanent resident transitions, are expected to help us achieve the 5% target.
• The targets for the TFWP are 82,000 each year and prioritize primary agriculture workers in order to protect Canada’s food security and food supply chain.
• The IMP target is set at 285,750 entries into Canada in 2025, 128,700 for 2026 and 155,700 for 2027
• The student target is set at 305,900 for 2025 and each following year.

Responsive (if pressed on 2024 TR volumes to date)
• The increase in the number of temporary residents over the past five years helped fill critical labour shortages in the aftermath of the pandemic and helped stabilize the economy during difficult times. It reflected robust client and stakeholder demand and Canada’s response to unprecedented international events.
• Now that the economic context has shifted, we have made efforts to stabilize temporary resident volumes, including a cap on study permit applications and other reforms for student and worker programs.
• There are promising signs that those changes are working. In the first nine months of 2024, we had fewer international students coming to Canada – down 43% compared to 2023. Temporary foreign worker volumes have also declined compared to 2023.

Responsive (Temporary resident volumes and housing pressures)
• While immigration is not the main driver of the current housing and health care crises taking place across the country, we need to ensure our immigration system reflects the capacity of communities to provide housing, healthcare and other key services to Canadians, including newcomers.
• The 2025-2027 Levels Plan recognizes the need to balance Canada’s continued need for immigration, while taking into account infrastructure and housing challenges.

Responsive (protecting essential sectors and industries)
• Efforts have been made to prioritize and protect sectors and industries essential to Canada’s economy. Under temporary resident targets, primary agriculture workers under the TFWP who do not leave within the calendar year will be prioritized to limit the negative impact on Canada's economy and food supply chain.

Temporary Foreign Worker (TFW) programs and volumes
• Work permits may be issued under two programs: the Temporary Foreign Worker Program (TFWP), and the International Mobility Program (IMP).

• The TFWP, jointly administered with Employment and Social Development Canada (ESDC), requires a Labour Market Impact Assessment (LMIA) to determine that no Canadians or permanent residents are available and qualified to perform the work.

• The IMP, implemented solely by IRCC, is designed to support social, cultural and economic benefits to Canada, or reciprocal opportunities for Canadians abroad, and thus does not require an LMIA.

• From 2019 to 2023, the number of work permit holders who were in Canada primarily for work purposes increased in both worker programs.

• However, growth in the number of work permit holders has slowed in 2024. From January to September 2024, there were approximately 720,000 foreign nationals whose work permits (for work purposes) became effective, compared to almost 739,000 over the same period in 2023.
o For the January to September period, there were approximately 151,000 work permit holders under the TFWP in 2024, compared to 155,000 in 2023.
o For the January to September period, there were approximately 570,000 work permit holders under the IMP in 2024, compared to 586,000 in 2023.

International student volumes

• The number of international students arriving in Canada or extending their studies is slightly higher in 2024 than in 2023 (approximately 245,000 from January to June 2024 compared to around 237,000 for the same period in 2023). A significant portion of arrivals in 2024 come from applications that were processed prior to the cap.

• New approved study permits have decreased more significantly in 2024 compared to last year (approximately 176,000 from January to July 2024, compared to over 313,000 for the same period last year).

• Approved study permit extensions (i.e. in-Canada applicants), which were not capped, have increased compared to last year (approximately 139,000 from January to July 2024, compared to almost 123,000 for the same period last year).

TR Levels Plan and program recalibration measures:

• As of July 1, 2024, Canada’s non-permanent resident population was estimated at 3 million (7.3%).

• On March 21, 2024, IRCC announced that temporary resident arrivals – including TFWs and students – would be integrated into Canada’s 2025-2027 Immigration Levels Plan, with the aim to decrease the proportion of temporary resident to 5% of Canada’s population by the end of 2026.

• The 2025-2027 Immigration Levels Plan, released on October 24, 2024, set targets for new temporary resident arrivals at 673,650 in 2025, 516,600 in 2026, and 543,600 in 2027.

• By setting targets for new arrivals, it is anticipated that the number of people living in Canada temporarily will decline by 445,901 in 2025; 445,662 in 2026, and then modestly increase in 2027 by about 17,000.

Students

• To stabilize volumes and ensure students are well supported while in Canada, the government established an intake cap on most study permit applications in January 2024.

• For 2024, the spaces under the cap have been allocated to each province and territory. Most study permit applications now require a provincial or territorial attestation letter.

• The study permit intake cap will be extended through 2026. For 2025, IRCC has set the intake cap on study permit applications based on a 10% reduction from the 2024 target of 485,000 study permits issued. This means reducing study permits issued to 437,000 for 2025. We will then be stabilizing the intake cap for 2026 such that the number of study permits issued remains the same as 2025.

• For 2025 and 2026, the department has streamlined exempted cohorts to the cap. Most in-Canada study permit applications (i.e. extensions) will now be subject to the cap. Further, IRCC is creating a separate allocation for PTs to distribute to graduate-level student applicants specifically.

• Beyond the study permit cap, the department has also tightened work permit eligibility for graduates and spouses of international students.

• As of March 19, 2024, open work permits for spouses were limited only to those accompanying students in master's and doctorate degree programs, as well as certain professional programs at universities and select provincial/territorial pilot projects. Starting later this year the eligibility criteria for the spouses master’s degree students will be updated. Only the spouses of students whose master’s program is at least 16 months in duration will be eligible for a work permit.

• As of May 15, 2024, international students who begin a study program delivered by private colleges as part of a curriculum licensing arrangement are no longer be eligible for a post-graduation work permit (PGWP).

• As of November 1, 2024, all new PGWP applicants will be required to demonstrate a minimum level of language proficiency (CLB 7 level for university graduates and CLB 5 level for college graduates) to increase their ability to transition to permanent residence and to adapt to changing economic conditions.

• In addition to the language requirement, in order to be eligible for the PGWP, any graduates who apply for their study permit on or after November 1, 2024, from programs at public colleges, or university programs that grant diplomas or certificates rather than degrees, will need to graduate within an eligible field of study that is aligned to a labour market need.

• Those graduates who submitted a study permit application prior to November 1, 2024, will continue to be eligible provided that they meet the language requirement.

Temporary Foreign Worker Program (TFWP)

• In spring 2024, ESDC began implementing restrictions for the TFWP, including: expanding employer recruitment obligations to include asylum seekers; reducing LMIA validity periods from 12 months to 6 months; and reducing the cap on low-wage workers from 30% to 20% for most sectors except construction and healthcare.

• Effective September 26, 2024, certain LMIA applications in the low-wage stream are subject to more stringent controls, including: a refusal-to-process (RTP) for positions in census metropolitan areas with an unemployment rate of 6% or higher; reducing the 20% cap to 10%; and limiting the maximum employment duration to one year instead of two. The healthcare, construction, and food security/processing sectors are exempt from the 10% cap and RTP.

• An RTP specific to the Montreal region took effect on September 3, 2024, and will be in place for six months.

• As part of the LMIA, job offers must be assessed to validate that both the business and the job offer are genuine and legitimate. As of October 28, 2024, employers are no longer be able to use attestations from professional accountants or lawyers to prove their business legitimacy.

• Effective November 8, 2024, the wage threshold for the High-Wage stream will increase to 20% ($5 to $8) above the provincial-territorial median hourly wage.
o This would shift an estimated 34,000 positions to the Low-Wage stream, potentially reducing volumes by 20,000 positions, in conjunction with the September 26th changes.

• The TFWP will continue to build on existing information sharing agreements with provincial and territorial partners, as well as existing employer registries, to enhance data sharing and ensure that only genuine and legitimate job offers are approved.

International Mobility Program (IMP)

• On August 28, 2024, IRCC ended a temporary public policy that allowed visitors to apply for a work permit from within Canada. While the temporary policy was set to expire on February 28, 2025, IRCC ended the policy as part of overall efforts to recalibrate the number of temporary residents in Canada and preserve the integrity of the immigration system. IRCC is also aware that some bad actors were using the policy to mislead foreign nationals into working in Canada without authorization.

• On September 18, 2024, IRCC announced new open work permit eligibility restrictions on spouses of temporary foreign workers, such that the principal worker must be in a high-skilled management or professional occupation (e.g., C-suite executives, scientists), in critical sectors like health care and construction, or in a job linked to government priorities (e.g., military).

• As part of the announcement of September 18, 2024, IRCC also announced new open work permit eligibility restrictions on the spouses of international students. Eligibility will be further limited to the spouses of international students in master’s programs of 16 or more months in duration, doctoral programs, certain professional programs, and select pilot programs.

• IRCC will continue collaborating with ESDC on a sustainable approach that improves alignment of worker programs with federal objectives and economic/labour market conditions, while strengthening employer accountability and worker protection.

Protecting TFWs

• The TFWP and IMP strictly monitor employers’ adherence to program requirements and conditions through inspections which can be random or risk-based. Inspections are often generated from a tip or complaint, which will initiate a visit from a compliance inspector. If an employer fails to meet program requirements or conditions or does not cooperate during an inspection, consequences can be severe, including administrative monetary penalties up to a maximum of $1 million and bans from the programs.

• Since 2019, a foreign worker with an employer-specific work permit can apply for an open work permit if they are being mistreated by their current employer. The open work permit allows them to get out of these situations quickly and look for new jobs with another employer. A worker does not need to stay in an abusive situation to be eligible. In instances where temporary foreign workers may not feel comfortable reporting mistreatment or abuse, for fear of reprisal, the government operates a confidential tip line, available 24 hours a day, 7 days a week. This tip line provides a safe place for them to report abuse without reprisal.

Visitors
• On February 29, 2024, the government introduced a partial visa requirement for Mexican citizens, who represented approximately 17 per cent of all asylum claims in 2023. This was done in response to a continued increase in asylum claims made by Mexican citizens and where, according to the Immigration and Refugee Board of Canada, the majority were refused, withdrawn, or abandoned.

• After introducing these changes, the number of overall claims made by Mexican citizens dropped by almost 80% from 1,997 claims in February to 434 claims in June 2024.

• IRCC is continuously monitoring the impact of Canada’s visa policy on visa-exempt and visa-required countries, and adjusting and reviewing its visa decision-making protocols to make sure that officers are prepared to detect fraud and reduce the number of non-genuine visitors.

• In response to rising misuse of our visitors program from those who apply to visit Canada with the intent of remaining long-term, the Department has launched a Visitor Integrity Strategy (the Strategy) so that our visitors program remains sustainable for years to come while protecting the health, safety and security of Canadians.

• In the immediate term, IRCC has initiated an action plan on decision-making (e.g., review training, workload distribution, risk tolerance, review/reset of service standards) to ensure that high-risk applications are being screened for potential misuse. The department has updated analysis, guidance and training on risk assessments and fraud detection with a focus on high TRV asylum intake countries: India and Bangladesh. This has led to adjustments in our case triaging, and we are revalidating already issued visas when fraud or potential misuse is suspected for case-by-case cancellation under our existing authorities. IRCC continues to look at all tools at our disposal to make sure we have what we need to screen against modern day risks, working closely with partners at the CBSA.

Aligning immigration with housing and infrastructure planning

• The government has been criticized for increased admissions of non-permanent residents such as foreign workers and international students, at a time when Canada’s housing and infrastructure is strained.

• IRCC recognizes that there is a need to ensure communities have the capacity to welcome and support newcomers. At the same time, immigration can be part of the solution to addressing these pressures by adding workers in critical sectors, such as construction and health care.

• Regarding the international student program, the Department, in consultation with PTs and national education associations, has been finalizing a "Recognized Institutions Framework". This Framework will provide benefits to institutions that demonstrate higher standards related to international student supports, including access to housing.

• The department has publicly committed to broadening its whole-of-government approach to immigration planning, and this includes better management of temporary resident volumes. The inclusion of temporary residents in multi-year levels planning aims to help strengthen the alignment between immigration planning, community capacity and labour market needs, and support sustainable population growth.

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