Canada has long been one of the most popular destinations for international students seeking high-quality education, global exposure, and post-study work opportunities. However, recent data released by Immigration, Refugees and Citizenship Canada (IRCC) paints a different picture for 2025 — one of slowing arrivals, tighter immigration controls, and reduced growth in the international student population.
This decline is not only shaping the landscape of higher education but is also influencing Canada’s labour market and immigration goals for the coming years.
A Sharp Decline in New International Student Arrivals
According to the latest IRCC statistics, Canada welcomed 45,380 new international students in August 2025, compared to 79,795 arrivals during the same month in 2024. That’s a significant 43.1% decrease in just one year.
Between January and August 2025, Canada recorded 132,505 fewer international student arrivals than during the same period last year.
This drop comes after a series of policy changes aimed at reducing the number of temporary residents in Canada — which includes both international students and temporary foreign workers — to below 5% of the country’s total population.
These new measures, which were announced in late 2024 and took effect in 2025, have already started to show visible impact across Canadian colleges and universities.
Government Policy and the New Reality for International Students
The Canadian government’s 2025 Immigration Levels Plan had set an ambitious target of 305,900 new international student arrivals for the year. But by the end of August, only 89,430 study permits had been issued — just 29% of the yearly goal.
To reach its target, IRCC would need to issue more than 216,000 new study permits before the end of 2025 — a figure that is now highly unlikely.
The federal government’s intention behind these adjustments is to manage population growth, stabilize housing demands, and maintain the sustainability of essential services. However, the ripple effect has been felt strongly within the international education sector, which contributes billions to Canada’s economy each year.
For international students, these changes mean increased competition for study permits, longer processing times, and stricter eligibility criteria for designated learning institutions (DLIs).
Temporary Foreign Worker Numbers Also Declining
The slowdown extends beyond students. IRCC data shows that in August 2025, there were 16,890 new temporary foreign worker arrivals, down from 18,450 in July.
When compared year-over-year, the difference is even more striking. Between June and August 2025, only 59,365 new work permits were issued — a 35% drop from the 91,695 during the same period in 2024.
In total, from January to August 2025, Canada saw 243,945 combined arrivals of students and temporary workers — nearly 279,000 fewer than the same period last year.
This data clearly reflects the government’s effort to control the inflow of temporary residents and shift toward a more sustainable immigration model.
Decline in the Total International Student Population
The overall number of international students currently studying in Canada has also seen a sharp decrease. Between August 2024 and August 2025, the total population of international students fell by 26%.
| Month | August 2024 | August 2025 |
|---|---|---|
| Number of Study Permit Holders | 651,230 | 514,540 |
This decline has been consistent throughout 2025, with only a slight increase in August as new students arrived for the fall semester. The seasonal spike, however, was not enough to offset the overall downward trend.
For colleges and universities, this means smaller class sizes and a notable drop in tuition revenue — especially for programs that historically rely on international enrollment.
Work Permit Holders and Post-Graduation Opportunities
While the number of students has dropped, temporary foreign worker numbers remain relatively stable, showing a 4.37% increase from August 2024.
| Month | August 2024 | August 2025 |
|---|---|---|
| Number of Work Permit Holders | 1,427,235 | 1,489,645 |
IRCC attributes this slight growth to ongoing processing of older applications submitted before the new rules were implemented.
Additionally, many international students who completed their studies have transitioned to the Post-Graduation Work Permit (PGWP) program — allowing them to gain valuable Canadian work experience, which can later support their Permanent Residency (PR) applications.
These PGWP holders make up a large portion of the work permit population, reflecting the importance of Canada’s study-to-work pathway even amid tightened immigration measures.
Dual Permit Holders: A Decreasing Trend
Another key group affected by the current trends are those holding both a study permit and a work permit, often students working part-time while studying.
The number of dual permit holders has dropped significantly from 368,815 in August 2024 to 288,885 in August 2025, despite a minor month-over-month rise from July.
This reduction mirrors the overall decline in international student enrollment and highlights how fewer students are entering or continuing their studies in Canada this year.
Policy Shifts and Political Discussions
The changing dynamics around temporary residents — particularly international students — have sparked national debate.
Political leaders, including Conservative Party leader Pierre Poilievre, have questioned the structure of programs like the Temporary Foreign Worker Program (TFWP). He has even called for it to be overhauled or replaced entirely.
At the same time, government officials, including Mark Carney, have emphasized the need for a more targeted approach to immigration — one that focuses on strategic sectors and regional labour needs rather than broad intakes.
It’s important to note, however, that the International Mobility Program (IMP) — not the TFWP — accounts for most of the work permits issued in Canada.
According to the Immigration Levels Plan, targets for the IMP remain much higher than those for the TFWP, showing the government’s ongoing reliance on mobility-based pathways.
Looking Ahead: Canada’s 2026–2028 Immigration Outlook
In the coming weeks, Canada is expected to release its Immigration Levels Plan for 2026–2028. This new plan will likely provide updated targets for international students, temporary foreign workers, and other categories of temporary residents.
Early indications suggest that the federal government may continue to prioritize balance and sustainability — maintaining opportunities for qualified international students while managing population growth and housing demand.
For international students, the next few years could bring new eligibility rules, study permit quotas, and possibly more emphasis on French-speaking or regional applicants as Canada aims to strengthen its Francophone immigration goals.
What This Means for Future International Students
For anyone planning to study in Canada, this shift highlights the need for early preparation and professional guidance. With the government tightening rules around designated institutions and introducing potential study caps, applying strategically has never been more important.
Students should ensure their programs are at Designated Learning Institutions (DLIs) that maintain good standing with IRCC. They should also explore options like French-language studies, smaller provinces, and pathways to PR through the Post-Graduation Work Permit (PGWP) and Canadian Experience Class (CEC).
At Eiffel Immigration, our team specializes in guiding international students through every stage — from study permit applications to PGWP and Permanent Residency (PR) transitions.
We help you navigate changing policies, choose the right program, and plan your long-term immigration strategy in Canada.
✈️ Final Thoughts
Canada remains one of the most attractive destinations for international students — but the environment is shifting. As IRCC continues to rebalance temporary resident levels, international students must stay informed and plan proactively.
Understanding the latest policy updates and immigration trends will be the key to success in 2025 and beyond.
If you’re an international student looking to study, work, or settle in Canada, reach out to Eiffel Immigration for expert advice tailored to your profile.
