Canada Remains Attractive to International Students Despite Study Permit Cap

Canada is issuing 30 per cent fewer Study Permits each month in 2024 compared to the record year of 2023 as Immigration Minister Marc Miller’s cap on international students takes hold.

The latest data from Immigration, Refugees and Citizenship Canada shows an average of 39,750 new Study Permits have been issued per month this year, down from an average of 56,838 in 2023.

This puts Canada on target to welcome 477,000 international students this year, compared to 682,060 in 2023. The 2024 remains high, meaning there are plenty of opportunities for international students to come to Canada.

A Canadian study permit allows foreign nationals to study at designated learning institutions (DLIs) in Canada after submitting an acceptance letter from an institution.

The ability to work while studying and post-graduation makes Canada an attractive destination for international students.

Canada has seen a significant rise in study permit applications and international student numbers for several years. In 2022, the country hit a record with 548,350 international students from all over the world. This trend continued in 2023 when the number of study permits issued reached 682,060 56,838. As of July 2024, it was 278,250.

According to a 2023 Canadian Bureau for International Education (CBIE) survey, 70 percent of international students plan to apply for post-graduate work permit, while 57 percent plan to apply for  permanent residency after completing their studies.

At the end of 2023, Canada saw a 63 percent growth in the number of international students over the previous five years, according to CBIE.

Work and residency opportunities

The Post-Graduation Work Permit (PGWP) is a big draw as it allows graduates to stay and work in Canada for up to three years, depending on the length of their study program.

After gaining Canadian work experience, international students can explore various immigration programs, such as the Canadian Experience Class (CEC) or Provincial Nominee Programs (PNP), to apply for permanent residency.

The trend of study permits in Canada has evolved significantly over the past few years but has seen consistent growth over several years.

Data from study permit holders by country of citizenship and year in which permits became effective from January 2015 to July 2024 compiled by Immigration Refugees and Citizenship Canada (IRCC) shows that the figure for 2022 was 548,000 compared to 219,035 in 2015.

The top source countries for study permit applications have consistently been India, China, and other countries like the Philippines, Vietnam, Iran, France, and Nigeria. Indian students are the largest group, accounting for over 40 percent of the total study permit holders.

China dominated before India moved to the top spot and continues to dominate. In 2016, China had 76,840, while India had 52,625. India eased ahead in 2017 with 82,935, against China’s 82,690.

However, in 2018, study permits for Indians surged to 107,020, compared to 84,980 for Chinese students. In 2019, 138,595 study permits were issued to Indians, putting the country in a clear lead, with China at a distant second with 84,140.

Pandemic impact

However, in 2020, the numbers dropped across the board for all countries because of COVID-19-related travel restrictions. Study permits for India fell to 80,875, and China’s was 57,705.

While India and China remain dominant in sending students, there has been a notable increase in applications from countries like Nigeria, the Philippines, Vietnam, and Iran. Nigerian students are expected to become the second-largest international student group in Canada.

Before 2020, the Philippines and Nigeria were low on the list, with 6,330 and 7505 permits, respectively, in 2019. The pandemic caused a temporary decline in study permit applications and approvals in 2020, causing numbers for the Philippines to drop to 4,355 and Nigeria to 5,835 because of travel restrictions, but numbers for all countries began rebounding by late 2021.

Interest in Canadian education remained high after Canada introduced temporary measures allowing international students to complete part of their programs online without impacting their Post-Graduate Work Permit (PGWP).

In 2022, 25,245 permits were issued for the Philippines, while 16,100 Nigerian students received permits. However, the African country overtook the Philippines in 2023 with 37,550, against 33,810 for the Southeast Asia nation. India jumped ahead of the pack with 278,250 and remained in the top spot.

Skilled labour

As Canada faces skilled labour shortages, the government is increasingly focusing on attracting skilled individuals, including international students, who are more likely to fill high-demand roles in the economy.

Recent immigration policy updates have targeted specific sectors, such as technology, healthcare, and skilled trades, allowing international students in these fields to integrate more easily into the workforce post-graduation.

Canadian institutions have actively promoted their programs in newer markets, attracting students from more diverse regions. This allows schools to diversify their student bodies and reduce dependency on a few countries.

Students are diversifying their destinations, with provinces like Alberta and Saskatchewan experiencing significant growth in their international student populations. As of mid-2023, countries like Nepal and Ghana were showing rapid growth.

Ghanaian students received 785 permits in 2015, which grew steadily to 1,340 in 2019 and dropped to 810 in 2020, like other countries, because of COVID-19. In 2023, 7,475 permits were issued to the West African nation, a 167 percent increase from 2022, according to CBIE.

Canada has relied on immigration to address its aging population and labour shortages, with international students playing a central role in its long-term immigration strategy.

Government cap

However, Immigration Refugees and Citizenship Minister Marc Miller announced government plans to reduce the number of new permits by 35 percent compared to 2023, targeting around 360,000 approvals. Some provinces, such as Ontario, could see greater than 50 percent reductions. The cap, a response to housing and public services pressures because of the high influx of international students, will remain in place for two years.  

Canada’s demand for study permits is part of a broader global trend of students seeking high-quality education with favourable post-study work and immigration opportunities. Canada’s reputation for diversity, safety, and strong academic institutions makes it a top destination.

Despite the planned cuts, international students will remain integral to Canada’s economic and immigration strategy. Skilled immigration and policies to attract permanent residents in critical sectors could continue to drive economic growth.

International Student In Canada FAQ

1. What are the visa options for international students in Canada?

International students typically need a study permit to study in Canada. A Temporary Resident Visa (TRV) or an Electronic Travel Authorization (eTA) may also be required, depending on your nationality. The study permit allows you to stay in Canada for the duration of your studies and may also grant you the ability to work part-time during your program.

2. Can I work while studying in Canada?

Yes, international students with a valid study permit can work part-time during regular academic sessions and full-time during scheduled breaks. The length of time they can work is under consideration, with the government expected to cap it at 24 hours. Your program must be full-time and at a designated learning institution (DLI) to be eligible. Some students can also participate in co-op programs or internships as part of their studies.

3. What are the living costs for international students in Canada?

Living costs vary depending on the city, lifestyle, and accommodation choice. On average, students spend between CAD $10,000 to $15,000 annually on housing, food, transportation, and other expenses. Cities like Toronto and Vancouver tend to have higher living costs, while smaller cities are more affordable. Budgeting for health insurance, textbooks, and personal expenses is also important.

4. Can I stay in Canada after I graduate?

Yes, international students can apply for a Post-Graduation Work Permit (PGWP), which allows them to stay and work in Canada after graduation for up to three years. The length of the PGWP depends on the length of your study program. Gaining Canadian work experience can also help you apply for permanent residency through programs like Express Entry.

5. Do I need health insurance as an international student?

Yes, international students in Canada are required to have health insurance. Some provinces offer provincial healthcare coverage to international students, while others may require you to purchase private health insurance. It’s important to check the healthcare options in your specific province and ensure you are covered from the day you arrive in Canada.