Canada Tightens Study Permit Caps and PGWP Requirements

[Canada’s Immigration, Refugees, and Citizenship Canada (IRCC)](https://www.canada.ca/en/immigration-refugees-citizenship.html) has introduced significant changes to its international student and work permit programs. With a focus on maintaining the integrity and sustainability of the immigration system, IRCC has implemented a tighter cap on study permits and revised the eligibility criteria for Post-Graduation Work Permits (PGWPs). These updates aim to balance the influx of international students and temporary residents with Canada’s long-term economic and labor market needs. This Article will give you details of these changes and what they mean for prospective students, temporary workers, and immigrants.

Table of Contents

1. [New Study Permit Caps for 2025](#new-study-permit-caps-for-2025) 2. [How changes will affect Master's and PhD Students](#how-changes-will-affect-masters-and-phd-students) 3. [Changes in Post graduation work permit Requirements](#changes-in-post-graduation-work-permit-requirements) 4. [Changes in Spousal Open Work Permits](#changes-in-spousal-open-work-permits) 5. [Implications for The temporary foreign worker program](#implications-for-the-temporary-foreign-worker-program) 6. [Impact on Temporary and Permanent Residents](#impact-on-temporary-and-permanent-residents) 7. [Conclusion](#conclusion) 8. [Frequently Asked Questions (FAQs)](#FAQs)

New Study Permit Caps for 2025

Reduced Study Permit Quota

Starting in 2025, IRCC will cap the issuance of study permits at 437,000, a 10% reduction from the 2024 target of 485,000 permits. This reduction will remain in place until 2026, marking a significant decrease in the number of new international students allowed into Canada over the next few years. The government expects this change to result in around 300,000 fewer study permits issued to international students by 2026.

Reasons Behind the Cap

According to Immigration Minister Marc Miller, the cap is designed to manage the increasing number of temporary residents and ensure that Canada’s immigration system remains sustainable. “Our immigration system must be well-managed and sustainable, and these changes will help us achieve that goal while setting newcomers up for success,”.

How changes will Affect Master's and PhD Students

Introduction of Provincial Attestation Letter (PAL)

One of the major changes affecting graduate students is the introduction of the Provincial Attestation Letter (PAL) requirement for master's and PhD candidates. Previously exempt, these students must now obtain a PAL to validate their study permit applications. The PAL system, which was introduced earlier this year for college and undergraduate students, aims to ensure that applications are genuine and to control the number of study permits issued.

Reserved Study Permit Allocations

IRCC has reserved approximately 12% of study permit allocations for master’s and PhD students. This allocation recognizes the unique benefits these students bring to the Canadian labor market, particularly in research and specialized fields. Read more : [IRCC processing time updates 2024 ](https://educationplanner.io/blogs/ircc-processing-times-2024-update)

Changes in Post graduation work permit Requirements

Changes in Language Proficiency Standards

Starting November 1, 2024, applicants for the PGWP will need to meet higher international english language test. University graduates must now demonstrate a Canadian Language Benchmark (CLB) score of 7, while college graduates will need a CLB score of 5. This change is expected to reduce the number of PGWPs issued by 175,000 over the next three years.

New Requirements for International Students

This new requirement poses an additional challenge for international students who wish to gain Canadian work experience post-graduation. Language proficiency is now a more critical factor in securing a PGWP, making it essential for students to focus on improving their language skills during their studies.

Changes in Spousal Open Work Permits

Eligibility Restrictions

IRCC is also tightening eligibility for spousal open work permits. Starting later this year, these permits will only be available to spouses of master’s degree students enrolled in programs that are at least 16 months long. This change is projected to result in 50,000 fewer spousal work permits being issued over the next three years.

Restrictions for Critical Sectors

Additionally, spousal work permits will be limited to spouses of Canadian citizens or permanent residents working in critical sectors. This measure will further reduce the number of spousal open work permits issued and limit the options for spouses of temporary residents.

Implications for the temporary foreign worker program

Impact of Rising Unemployment Rates

Canada’s unemployment rate has increased from 6.4% to 6.6% since April 2023, with 1.5 million unemployed people as of August 2024. The government’s new measures are aimed at controlling the number of temporary residents, particularly those on work permits, in response to the growing unemployment rate.

Revisions to the Temporary Foreign Worker Program (TFWP)

The Minister of Employment, Randy Boissonnault, emphasized that the Temporary Foreign Worker Program (TFWP) should only be used as a last resort and not to replace Canadian workers or suppress wages. This stance reflects a shift towards stricter regulations and a reduction in the number of the temporary foreign worker program entering Canada.

Impact on Temporary and Permanent Residents

New Measures to Control Temporary Residents in Canada

In 2025, IRCC will include temporary resident levels in its Immigration Levels Plan for the first time. This plan aims to decrease the number of temporary residents in Canada, including those on study and work permits. Measures include ending the COVID-era policy allowing visitors to apply for work permits from within Canada and pausing certain Labour Market Impact Assessments (LMIAs).

Changes for Permanent Immigration Levels and System

Minister Miller has indicated that changes to permanent immigration levels are also being considered. While details are yet to be announced, the focus will be on maintaining a balanced immigration system that aligns with Canada’s labor market needs.

Conclusion

Canada’s recent changes to study permits, work permits, and temporary foreign worker regulations reflect a broader strategy to manage the flow of temporary residents and ensure the sustainability of the immigration system. Prospective students, temporary workers, and their families must now navigate a more stringent set of requirements to study and work in Canada. Staying informed and prepared is key to successfully navigating these changes and planning a future in Canada.

Frequently Asked Questions (FAQs)

Q1: What is the new study permit cap for 2025? Ans: The cap for 2025 is set at 437,000 study permits, a 10% reduction from the 2024 target. The main motive of these CAP is to only invite Talented Students in Canada. Q2: What are the new PGWP language requirements? Ans: University graduates need a CLB score of 7, while college graduates require a CLB score of 5 to be eligible for a PGWP. Q3: Who is eligible for Spousal Open Work Permits? Ans: Spousal open work permits are now limited to spouses of master’s degree students in programs of at least 16 months and spouses of Canadians or permanent residents in critical sectors. Q4: How will these changes affect the temporary foreign worker program? Ans: The new measures aim to reduce the number of temporary residents, including those on work permits, in response to rising unemployment rates in Canada.