Question Period Note: Temporary resident reduction

Measures to stabilize temporary resident intake.

• While temporary residents enrich Canada’s economy and cultural fabric, we have committed to reducing temporary immigration growth to better align the needs of our labour market, housing supply, and community capacity.
• A study permit cap has been introduced and eligibility requirements for work permits have been tightened.
• These measures emphasize quality over quantity and help ensure that Canada continues to be able to attract the talent it needs to grow and prosper.

• The Government has committed to returning immigration to sustainable levels by reducing the total number of temporary residents to less than 5% of population by the end of 2027.

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

• As of January 1, 2025, Canada’s non-permanent resident population was estimated at approximately 3 million (7.3%), broken down as follows:
o Permit holders and their family members
 Work permit holders only (1,462,893)
 Study permit holders only (643,879)
 Work and study permit holders (347,268)
 Other (family members of permit holders, that do not have a permit themselves (163,726).
o Asylum claimants, protected persons and related groups
 With a work permit only (282,601)
 With a study permit only (2,372)
 With a work and study permit (16,885)
 Without a work or study permit (129,653)

Key Measures implemented

• IRCC has reduced the intake of international students and spouses accompanying workers and students.
o For spouses of international students, access is now limited to those enrolled in master’s programs of 16-months or more in duration, doctoral programs, certain professional programs, and select pilot programs.

o For family members of temporary workers, access is now limited to the spouse of a temporary worker employed in management or professional occupation (e.g., C-suite executives, scientists), or in sectors or jobs linked to government priorities.
• The number of international students in Canada was 4% lower on December 31, 2024 compared to December 31, 2023, and IRCC issued 41% fewer new study permits in 2024 compared to 2023.
• ESDC has also adopted tighter measures for the Temporary Foreign Worker Program (TFWP) by:
o expanding employer recruitment obligations to include asylum seekers;
o reducing Labour Market Impact Assessment (LMIA) validity periods and limiting employment durations;
o reducing the cap on the percentage of low-wage temporary workers that can be employed at a worksite from 20% to 10%;
o refusing to process applications in census metropolitan areas with an unemployment rate of 6% or higher; and
o raising the minimum wage threshold to access the High-Wage Stream, which has stricter requirements.

• Due to these measures, work permit issuance has slowed in 2024. Approximately 953,000 work permits were issued in 2024, compared to 968,000 in 2023. This is primarily attributable to a decrease in work permits that became effective under the International Mobility Program (from 788,000 in 2023 to 755,000 in 2024). Over the same period, the number of Temporary Foreign Worker Program (TFWP) work permits increased slightly from 183,000 in 2023 to approximately 192,000 in 2024.

• 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.

• On September 18, 2024, IRCC announced that the target number of study permits issued for 2025 is 437,000, which is a 10% reduction from the 2024 target of 485,000 permits. For 2026, the study permit target will stabilize at the same level as 2025.

• IRCC has published how many study permit applications spaces have been allocated to each province and territory for 2025.

• In 2025, master’s and doctoral degree students will no longer be exempt from the cap, however IRCC has reserved a specific portion of spaces for these students in recognition of the benefits they bring to the Canadian labour market.

• The department has also tightened work permit eligibility for graduates to better align the Post-Graduation Work Permit program with labour market needs and permanent residence requirements.
o As of November 1, 2024, all new PGWP applicants are required to demonstrate a minimum level of language proficiency in English or French. Additionally, new study permit applicants intending to pursue a study program other than a bachelor’s, master’s or doctoral program, need to graduate from a field of study linked to occupations in long-term shortage.

• The number of international students arriving in Canada or extending their studies was much lower in 2024 than in 2023 (approximately 533,000 in 2024 compared to around 702,000 in 2023). A significant portion of arrivals in 2024 come from applications that were submitted prior to the cap.

Responsive (if pressed on effectiveness of volume reduction measures)
• These changes are proving effective. For April 1, 2025, Canada’s population growth has declined by approx. 1% in large part due to a decrease in the number of study and work permit holders over the last quarter.

Responsive (if pressed on impact to sectors)
• Even as we recalibrate our programs to better manage volumes, we continue to support talent attraction though targeted facilitative measures and prioritize the processing of applications in essential sectors such as healthcare, construction, agriculture, and food processing.