Canada suffers 53% decline in foreign students, temporary workers over nine months

Canada recorded a 53 per cent decline in the arrival of new international students and temporary workers between January and September 2025 compared to the same period in 2024, according to data published by Immigration, Refugees and Citizenship Canada (IRCC).

The reduction forms part of Canada’s efforts to manage migration more sustainably and ease pressure on housing, infrastructure and public services.

New international student arrivals fell by 60 per cent during the period, representing 150,220 fewer students compared to the first nine months of 2024. Monthly data showed that 11,390 study permit holders arrived in Canada in September 2025, down sharply from the 45,200 arrivals recorded in August.

The decline follows deliberate policy changes introduced by the Canadian government. Since 2024, Canada has capped the number of study permits issued to international students, with the cap reduced by a further 10 per cent in 2025. Authorities have also introduced stricter measures, including mandatory verification of acceptance letters and higher financial requirements, to curb study permit fraud.

The government has indicated that it will continue scaling back new student admissions between 2026 and 2028 under its Immigration Levels Plan, reinforcing its goal of maintaining manageable migration levels.

Temporary worker arrivals also declined significantly. Between January and September 2025, Canada recorded 48 per cent fewer new temporary workers than during the same period in 2024, a drop of 158,660. In September alone, 17,515 new temporary workers arrived in the country.

As of the end of September, 1,494,900 people in Canada held only a work permit, while 251,300 held both work and study permits. The government has stressed that reducing temporary worker numbers will help prioritise job opportunities for residents already in Canada and better align immigration with labour market needs.

Despite the fall in new arrivals, Canada continues to support temporary residents already in the country to transition to permanent residence. From January to September 2025, more than 154,000 former temporary residents became permanent residents, accounting for about half of all new permanent residents admitted during the period.

IRCC said many of these individuals already possess Canadian education, Canadian work experience and strong language skills, and typically apply through economic immigration pathways such as Express Entry and the Provincial Nominee Program. The agency noted that this approach allows Canada to build on the contributions of people already living in the country while easing pressure on housing, infrastructure and public services.

As of September 30, 2025, 473,860 people in Canada held only a study permit, 1,494,900 held only a work permit, and 251,300 held both work and study permits.

The sharp decline in arrivals is expected to have ripple effects across the education and labour markets, with universities and colleges likely to face lower enrolment and industries reliant on temporary workers adjusting their staffing strategies.

Under Canada’s Immigration Levels Plan, the government aims to reduce the temporary resident population to less than five per cent of the total population. The plan projects further reductions in new student and worker arrivals between 2026 and 2028 while supporting long-term economic growth.

Targets include 155,000 new international student arrivals, 49 per cent fewer than the 2025 target, 230,000 new temporary worker arrivals, 37 per cent below the 2025 target, and 380,000 new permanent residents, four per cent lower than the 2025 target. The government also plans to fast-track permanent residence for 33,000 skilled temporary workers between 2026 and 2027, focusing on those already working in communities, particularly in rural areas and high-demand sectors.