Canada sees nearly 60% drop in international student arrivals in 2025

Canada recorded 278,900 fewer arrivals between January and August 2025, with sharp declines in new international students and temporary foreign workers

Canada is witnessing a sharp drop in the number of new international students and temporary foreign workers entering the country this year, according to fresh data released by Immigration, Refugees and Citizenship Canada (IRCC) on Wednesday.

 

Between January and August 2025, 278,900 fewer newcomers arrived in Canada than during the same period in 2024. The number of new international students fell by nearly 60 per cent, while new temporary foreign workers declined by 146,395, IRCC said in its revised report.

 

Fewer international students entering Canada

 

The data showed that international student arrivals were down by more than 132,000 during the first eight months of 2025. In August alone, 45,380 international students entered the country.

 

One of the main reasons for this drop is the annual cap on international student study permits introduced in 2024, followed by a further 10 per cent cut in 2025. Canada also made acceptance letter verification mandatory to curb study permit fraud and raised financial proof requirements to ensure students were better prepared for the cost of living.

 

Sharp fall in new temporary foreign workers

 

Canada also recorded a fall in temporary foreign worker arrivals. Only 16,890 new workers entered in August 2025, and 146,395 fewer arrived between January and August 2025 compared with the same period in 2024.

 

The decline followed the government’s decision to limit low-wage hiring to 10 per cent (20 per cent in select in-demand sectors) and to stop processing low-wage applications in urban areas with unemployment rates of 6 per cent or higher. These limits extended to more occupations when IRCC raised the wage threshold for high-wage roles.

 

“We expect the number of work permits and extensions to go down in the months ahead to reflect the impact of the new measures,” said IRCC.

 

Tighter rules for post-graduation and spousal work permits

 

The government also revised eligibility rules for the Post-Graduation Work Permit (PGWP) to align the programme with labour market needs. Work permit eligibility was further restricted for spouses of international students and temporary foreign workers.

 

“While we have committed to reducing the number of temporary residents in Canada, it will take time for the full effects to appear in the data,” said IRCC. “Inventories of existing applications continue to be processed under the rules that were in place when they were submitted.”

 

Temporary residents transitioning to permanent residence

 

Between January and August 2025, over 139,700 former temporary residents became permanent residents, making up about half of all new permanent residents in that period.

 

“They are well-integrated, as they usually have a Canadian education, Canadian work experience and strong skills in one or both official languages,” said IRCC. “Most of them apply for permanent residence through economic programmes like Express Entry and the Provincial Nominee Programme, which are designed to select people who meet Canada’s labour market and regional priorities.”