Canada Mulls Study Permit Changes Amid Rising Job Losses

By Visa Jobs CanadaJune 27, 2025International Students & GraduatesCanada immigration, job losses, study permits, visa sponsorship, work permits

Canada’s immigration minister recently indicated openness to revisiting limits on study permits put in place last year, emphasizing that any changes must be viewed as “sustainable” by the public.
This potential review follows significant job losses in the education sector, resulting from a drop in international student enrolment due to these permit caps.
Canadian lawmakers are on alert as the economic impact of recent U.S. tariffs weighs heavily.

Under the guidance of Prime Minister Mark Carney, the Canadian government is undertaking consultations with provincial governments and educational institutions about the previously established study permit cap. This cap, introduced in January 2024, has tragically led to the loss of over 8,260 jobs in post-secondary education.

Immigration Minister Lena Metlege Diab hinted in a recent interview that there might be adjustments to this cap, which could be a lifeline for the beleaguered sector. She recognized that maintaining a robust education system is essential for the economic stability of various regions in Canada.

“Canadians want to ensure that we have a system that is sustainable,” she stated, reflecting the government’s commitment to balance educational needs and public sentiment.

A spokesperson from the Immigration, Refugees and Citizenship Canada (IRCC) echoed this caution. They emphasized that provinces hold responsibility for ensuring adequate funding for colleges and universities.

When the caps were established, concerns over housing shortages due to an influx of international students were cited as a major factor. Ontario has felt the brunt of these caps, experiencing the highest job loss numbers among the provinces.

“Education is a provincial and territorial responsibility – as is the adequate funding of post-secondary institutions.”
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Higher education consultant Ken Steele is tracking job reductions, noting a dramatically increasing toll each month. More than 5,000 positions were lost by May, with many institutions struggling financially. In total, this year’s financial impact is estimated to be around CAD 2.7 billion, leading to the suspension of 583 academic programs.

Ontario colleges have seen some of the worst cuts; for instance, Centennial College in Toronto has lost over 750 jobs, and Sheridan College has seen a decline of 656 positions. British Columbia and Quebec are not exempt either, with significant losses reported at Montreal’s Concordia and McGill Universities.

Steele suggested that the federal government should reconsider its study permit cap to help retain employment in the education sector. “The IRCC has surpassed its goals in reducing the number of temporary foreign workers and international visa students,” he argued, advocating for a more balanced approach.

As concerns about a potential recession mount, the jobless rate hit 7% in May—its highest in nearly a decade. With the impacts of U.S. tariffs looming large, it’s important for the government to consider supporting the higher education sector as well.

This year’s cap on study permits is set at 437,000, reflecting a sharp 40% reduction in international student numbers since the cap’s announcement.