Canada Tightens Study Permit Caps and Changes PGWP Eligibility: What You Need to Know

Canada’s Immigration Minister, Marc Miller, recently announced significant changes to the country’s international student program and work permit policies. The most notable update is the introduction of a tighter cap on study permits and new eligibility requirements for the Post-Graduation Work Permit (PGWP).

New Cap on Study Permits

IRCC (Immigration, Refugees, and Citizenship Canada) has announced that only 437,000 study permits will be issued in 2025. This is a 10% reduction from the 2024 target of 485,000 study permits, aiming to stabilize the intake by 2026. The reduced cap means 300,000 fewer study permits will be issued over the next few years.

Minister Miller emphasized that Canada’s immigration system must remain sustainable, saying, “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.”

Changes for Master’s and PhD Students

The updated cap now includes Master’s and PhD students, who are no longer exempt from obtaining a Provincial Attestation Letter (PAL). Approximately 12% of the available study permits will be reserved for these students, acknowledging their positive impact on Canada’s labor market. PALs, introduced earlier this year for many college and undergraduate students, help verify the authenticity of applications and control the number of study permits issued.

New PGWP Eligibility Requirements

Starting November 1, new language requirements will apply for PGWP applicants. University graduates must now demonstrate a Canadian Language Benchmark (CLB) score of 7, while college graduates need a CLB of 5. These changes are expected to reduce the number of PGWPs issued by 175,000 over the next three years.

Restrictions on Spousal Open Work Permits

IRCC will also tighten the rules around spousal open work permits later this year. Eligibility will be limited to spouses of Master’s degree students enrolled in programs lasting at least 16 months, resulting in 50,000 fewer permits over the next three years. Additionally, spousal work permits will be restricted to spouses of Canadians or permanent residents employed in critical sectors.

Impact on the Temporary Foreign Worker Program

Canada’s unemployment rate has been rising since April 2023, reaching 6.6% in August 2024. In response, the government is implementing measures to curb the number of temporary residents holding work permits. Employment Minister Randy Boissonnault emphasized that the Temporary Foreign Worker Program (TFWP) should be a last resort, used only when Canadian workers are unavailable.

Broader Changes to Canada’s Immigration System

These updates are part of broader efforts to reduce temporary resident numbers. Key measures include pausing Labour Market Impact Assessments (LMIAs) in high-unemployment areas and considering changes to PGWP issuance, aligning them with in-demand sectors. Canada’s Immigration Levels Plan for 2025-2027 will include temporary resident targets for the first time.

Minister Miller hinted at potential changes to permanent immigration levels, stressing the importance of balancing adjustments without “overcorrecting.” Further announcements are expected in the coming weeks.

What This Means for Future International Students and Temporary Workers

These changes reflect Canada’s efforts to balance its immigration intake with economic needs and sustainability. International students, particularly those seeking work permits post-graduation, will face stricter requirements, while prospective students must navigate the newly imposed caps and PAL requirements. As Canada continues to refine its immigration policies, staying informed will be crucial for those planning to study or work in the country.