New IRCC data obtained by Business Standard show Canada’s international-student population has fallen by 273,570—nearly 28 %—between December 2023 and November 2025. An article published 6 February links the decline to Ottawa’s hard caps on study-permit applications and tougher post-study work rules introduced in 2024 and tightened again last year.
Student arrivals dropped 60 % in 2025 versus 2024, and the 2026 intake target is set at just 155,000, less than half the 2024 ceiling. The federal objective is to reduce all temporary residents—students and foreign workers combined—to below 5 % of the national population by 2027.
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Colleges and universities are already feeling the pinch; several private institutions in Ontario and Atlantic Canada have announced hiring freezes and program closures. Larger research universities are pivoting recruitment to master’s and PhD candidates, who are now exempt from provincial attestation letter requirements.
For employers, the shrinking graduate talent pool will translate into fiercer competition for co-op students and entry-level hires. Companies reliant on PGWP holders should adjust campus-recruitment strategies and explore alternative pathways such as employer-specific LMIA work permits or the Global Talent Stream.
Prospective students must verify program eligibility for post-graduation work rights and ensure financial-support documentation meets the new minimum of CA$22,895 per year, excluding tuition and travel. Agents and recruiters face heightened scrutiny: any application containing false statements can attract a five-year re-entry ban under the latest IRCC fraud guidelines.