CIMM – International Students Caps – October 24, 2023

Key Facts and Figures

• Like all temporary residence programs, Immigration, Refugees and Citizenship Canada (IRCC) does not place limits on the number of study permits that it will receive and process per year. The program is driven by demand and IRCC must process each application for a study permit that is received.
• Over the past five years, the number of study permit applications that IRCC receives per year has more than doubled. In 2018, IRCC received 349,000 study permit applications compared to nearly 715,000 in 2022.
• From January 1 to August 31, 2023, IRCC received over 608,000 applications for new study permits (excluding extensions) and processed approximately 600,000. For the same period in 2022, the Department received approximately 477,000 applications and processed 445,000.
• The Department is on pace to receive over 900,000 study permit applications by the end of this year.

Key Messages

• An intake cap will not be imposed on the International Student Program at this time. While it is possible that a cap will become necessary in the future, at this time, we will implement reforms and assess how they are working before taking that step.
• International students are important to Canada’s labour market and our socio-cultural fabric. They are also a source of funding for postsecondary institutions and many are deeply reliant on revenue from international tuition to operate.
• We recognize that housing affordability and availability are challenges for Canadians and newcomers. My Department is currently examining how we can better select and retain top students to Canada.
• The rising volumes in international students have contributed to several challenges, including increased student vulnerability and pressure on Canadian communities, such as on housing.
• Moreover, the growth in international students and Post-Graduation Work Permit (PGWP) holders now significantly outpaces available levels room, meaning increasingly more international student graduates will be unable to remain in Canada as permanent residents after their PGWP expires.
• The Department is currently looking at a number of options to take a multifaceted approach to address ongoing challenges, including housing, and will continue to work closely with provinces and territories, national educational institutions and other key partners.

Supplementary Information

• On August 21, 2023, the Minister of Housing Infrastructure and Communities, and former Minister of IRCC, the Honourable Sean Fraser, indicated that he was considering implementing a cap on the number of international students coming to Canada to ease the pressure on the housing market.
• On August 27, Minister Miller commented that the skyrocketing number of international students entering Canada (900,000 in 2023) was also a source of concern for the integrity of the immigration system itself. At the same time, the Minister agreed that this cap may single out immigrants and international students as the centre of blame for the housing crisis.
• In recent years, the International Student Program has experienced dramatic growth. With approximately 807,260 total valid study permit holders at the end of 2022, we have reached an all-time high for the number of international students in Canada.
• Housing is a service that many Designated Learning Institutions (DLIs) in Canada provide, but is not an element for decision in the Immigration and Refugee Protection Act or Regulations (which provide the legal framework for IRCC's decision making on study permits for international students).
• IRCC is currently reviewing the International Student Program to address pressures it is facing, and is considering a number options to ensure that international students are well-supported while in Canada. The Department will continue to work closely with provinces and territories, national educational institutions and other key partners in deliberations on alternatives, and will announce any changes once decisions have been made and are ready to be implemented.

Could you please provide an update on this idea of capping-off the international student stream?

• An intake cap will not be imposed on the International Student Program at this time. While it is possible that a cap will become necessary in the future, at this time, we will implement reforms and assess how they are working before taking that step.

Could you elaborate on what integrity concerns are caused by the rising number of international students coming to Canada?

• The growth in volumes has been accompanied by increased integrity concerns, such as mass revocations of Letters of Acceptance from certain DLIs, the use of fraudulent documents by education agents and non-genuine students to enter Canada, [Redacted]
• This would suggest that the recent growth in the International Student Program has been too aggressive, and there is a need to determine a more appropriate level of growth that can be sustained by federal, provincial and territorial governments, DLIs, and Canadian communities.

Statistics Canada noted a surge of 46% in number of temporary residents in Canada from 2022 to 2023. How is this surge affecting the housing crisis in Canada?

• The rising volumes in international students has contributed to a growing perception that immigration is driving the housing crisis in Canada, and in particular, that temporary residents are impacting the availability of rental housing.
• International students typically live in rented accommodations. According to the 2021 Census, this includes 77% of study permit holders. Nearly one-third of international students reside in Toronto and Vancouver, which are the two most competitive and expensive housing markets in Canada.

What are your current thoughts on how the immigration framework can or should be tweaked to help alleviate this pressure?

• The facilitative nature of the Post-Graduation Work Permit Program is a major driver for growth in the international student program. We are looking at this program, to see how we can better calibrate it to Canada’s labour market needs, [Redacted]