Canada Mulls Tweaks to Study Permit Cap as Sector Faces Job Losses and Financial Strain
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The Canadian government is considering potential adjustments to its controversial cap on international student study permits as job losses and financial pressures mount across the higher education sector.
Since the cap’s introduction in January 2024, Canada has witnessed the loss of 8,260 jobs in post-secondary education, according to data tracked by higher education consultant Ken Steele. The federal cap, currently set at 437,000 study permits, represents a 40% reduction in the number of international students.
Immigration Minister Lena Metlege Diab has hinted that the government is open to consultations with provinces, institutions, and students to review the cap’s impact. “Education is vital to the economic health of many regions,” Diab told University Affairs, suggesting the cap might be revised for sustainability.
However, a more cautious message came from the Immigration, Refugees and Citizenship Canada (IRCC), which reiterated that education funding is a provincial responsibility. Ontario, which already has the lowest per-student funding in the country, has been hit hardest.
The financial toll has reached CAD$2.7 billion, with 583 programmes suspended nationwide and major institutions like Centennial College in Toronto and Sheridan College in Oakville shedding over 1,400 jobs combined. Quebec and British Columbia have also faced sharp losses, including 401 jobs at McGill University and 200 at Concordia.
“IRCC has surpassed its goals in reducing international visa students. It’s time to ease the cap to preserve employment,” said Steele, adding that housing costs — a key justification for the cap — have already begun to fall in major cities like Toronto.
The policy shake-up comes amid broader economic concerns. With Canada’s unemployment rate rising to 7%, fears of an impending recession are growing, compounded by economic strain from US-imposed tariffs under President Donald Trump.
Steele urged the government to recognise the damage inflicted by domestic policy. “The blow is from Ottawa, not Washington,” he said.
Source: THE PIE NEWS
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