IRCC Sets New Study Permit Limits and PGWP Eligibility

The future of international education in Canada will witness major modifications, as disclosed by the Canadian Minister of Immigration, Marc Miller. Immigration, Refugees, and Citizenship Canada (IRCC) has made a critical decision to restrict the number of study permits issued in 2025 to 437,000, marking a 10% decrease from the preceding year’s goal. This new quota indicates a stabilization in study permit figures for 2026 and anticipates a drop in international student admissions by approximately 300,000 over the next few years.

Highlighted in the announcement were significant alterations to the regulations concerning the issuance of study permits for master’s and doctoral candidates. From now on, these postgraduate students will require a Provincial Attestation Letter (PAL), falling under the same guidelines as their undergrad counterparts. The move comes with an allocation of about 12% of the cap specifically dedicated to these higher degree students, acknowledging their value to the national job market.

Moreover, changes have surfaced in the criteria for qualifying for the Post Graduation Work Permit (PGWP). Starting November 1, university graduates will need to prove a Canadian Language Benchmark (CLB) level of 7, and college graduates a level of 5, to obtain the PGWP. An estimated 175,000 fewer PGWPs will likely be sanctioned over the following three years as an effect of this update.

Work permit rules for spouses will also witness tightening measures. Later this year, eligibility will only extend to spouses of master’s students in programs that last at least 16 months, possibly leading to 50,000 fewer spousal work permits. Furthermore, Spousal Open Work Permits will become exclusive to partners of Canadians or permanent residents employed in essential sectors.

With a rising national unemployment rate, from 6.4% to 6.6% since April 2023, these changes are part of a broader strategy to manage the inflow of foreign workers under the Temporary Foreign Worker Program (TFWP). Strengthening this initiative, other measures include halting certain policies from the pandemic era, pausing processing of low-wage stream Labour Market Impact Assessments for jobs in areas of higher unemployment, and reevaluating how PGWPs align with sectors in need within the economy.

In January, IRCC had set a precedent by applying a cap on study permits and incorporating a new PAL system, aligning with customized provincial allocations. The alterations announced are expected to feature in the Immigration Levels Plan for 2025-2027, emphasizing a desire to balance temporary and permanent migration flows into the country.

Conclusion: Canada’s immigration sector is bracing for a period of significant reform, designed to balance economic growth with sustainable management of migration. These adjustments pose critical implications for future international students and workers, necessitating a vigilant approach to fulfill new regulations and restrictions.

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