A Changing Landscape for International Students
Canada has long been a favored destination for Indian students seeking quality education, post-study work opportunities, and pathways to permanent residency. However, recent policy shifts and demographic changes are reshaping the Canadian immigration landscape, particularly affecting temporary residents such as international students and foreign workers. As of January 2025, Canada’s population stands at 41.5 million, but the growth rate has slowed significantly, largely due to a decline in temporary resident inflows.
This analytical report breaks down what’s driving these changes, why Indian students need to rethink their strategies, and how current policies will influence their prospects in Canada.
The Slowdown in Canada’s Population Growth: A Data-Driven Look
According to Statistics Canada, the country’s total temporary resident population grew by just 291,165 people in 2024, a number three times smaller than the increase recorded in 2023. The last quarter of 2024 even saw a net outflow of 28,341 temporary residents.
Key figures:
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Study permit holders dropped by 32,643
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Work permit holders decreased by 18,435
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Asylum claimants and protected persons rose by 25,774, hitting an all-time high of 457,285
In total, Canada’s population grew by 744,324 people in 2024, marking a slowdown compared to the boom years of 2022 and 2023 but still higher than any year between 1972 and 2021.
Why Is Canada Reducing Temporary Resident Numbers?
1. Housing Crisis and Affordability Concerns
One of the primary reasons behind this shift is Canada’s ongoing housing crisis. Skyrocketing rents, limited housing supply, and cost-of-living pressures have forced the government to reassess its immigration intake, especially of temporary residents who add immediate pressure to urban housing markets.
In 2023, 98% of Canada’s population growth was attributed to immigration, with 60% of that stemming from temporary residents (international students, foreign workers, asylum seekers).
2. Policy Overhaul by IRCC
In December 2023, Immigration, Refugees, and Citizenship Canada (IRCC) introduced several policies to curb temporary resident inflows while promoting permanent residency transitions. These include:
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A cap on study permit applications for 2024-2026
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Raised financial thresholds for international students: Applicants now need to show proof of CAD 20,635 in funds, doubling the previous requirement
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New Post-Graduation Work Permit (PGWP) restrictions based on the field of study and language
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Stricter Spousal Open Work Permit (SOWP) rules
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Labour Market Impact Assessment (LMIA) freezes in high-unemployment metro areas
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Higher wage requirements for Temporary Foreign Worker Programs
These changes signal a clear shift: Canada is prioritizing permanent immigration pathways over temporary ones and ensuring that newcomers align better with economic and labor market needs.
Regional Impact: Not Uniform Across Provinces
Population changes have not been uniform across Canada. While some Atlantic provinces saw population declines due to TR outflows, Prairie provinces and Northern territories experienced modest growth:
| Province | Change (%) |
|---|---|
| Alberta | +0.6% |
| Saskatchewan | +0.3% |
| Manitoba | +0.3% |
| Yukon & Nunavut | +0.4% |
This suggests growing opportunities in less saturated provinces, especially for Indian students willing to explore regions beyond Ontario or British Columbia.
What Does This Mean for Indian Students Planning to Study in Canada?
1. Higher Financial Barriers
With living cost requirements now more than double, middle-class Indian families may find it harder to finance Canadian education. Provinces with lower living costs might become more attractive.
2. Tougher Work Opportunities
Changes to PGWP and SOWP rules will make it harder to stay and work after graduation. Targeted fields like STEM, healthcare, and skilled trades are likely to fare better under new rules.
3. Permanent Residency: A More Competitive Race
Canada’s move to reduce temporary residents while continuing to invite permanent immigrants means Indian students must plan their studies strategically, choosing programs that enhance PR eligibility.
The Broader Economic Context: Why Immigration Still Matters to Canada
Despite the temporary resident slowdown, Canada remains dependent on immigration to address two critical challenges:
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Aging population: Over 1 in 5 Canadians are above 65 years old, and thousands retire every year.
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Labor shortages in essential sectors: Healthcare, construction, IT, and education face persistent staffing issues.
Immigration is critical for maintaining Canada’s tax base, funding healthcare, and sustaining economic growth. Former Immigration Minister Marc Miller highlighted this in the 2025-2027 Immigration Levels Plan, stating that immigration is vital to prevent economic downturns and support public programs.
Expert Insights and Predictions for 2025-2026
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International student numbers may shrink by 20-30%, especially in overburdened provinces like Ontario.
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Private colleges and non-research-intensive programs could see falling enrollments due to stricter PGWP eligibility.
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STEM, healthcare, and skilled trade courses will likely become the safest bet for Indian students seeking long-term Canadian opportunities.
Conclusion: Strategic Planning Is Crucial for Indian Students
Canada’s new immigration policies are reshaping the educational migration landscape. Indian students must now carefully select courses, institutions, and provinces aligned with Canada’s labor market needs and PR pathways.
While challenges around affordability and post-study work options are increasing, Canada still offers immense opportunities — especially for those in high-demand sectors.
Stay informed, plan strategically, and make data-driven decisions for your future in Canada.
