Canada Sees 53% Drop in New Foreign Students, Temporary Workers in Nine Months

Canada recorded a sharp 53 per cent fall in the number of new international students and temporary workers arriving between January and September 2025 compared with the same period in 2024, according to figures released by Immigration, Refugees and Citizenship Canada (IRCC).

The decline reflects the federal government’s push to manage migration more sustainably and reduce pressure on housing, infrastructure and public services.

Arrivals of new international students dropped by 60 per cent over the nine-month period, translating to 150,220 fewer students than in the first three quarters of 2024. Monthly figures showed a steep slowdown, with 11,390 study permit holders arriving in September 2025, compared with 45,200 in August.

The downturn follows a series of policy shifts by Ottawa. Since 2024, Canada has imposed a cap on study permits for international students, with the limit reduced by another 10 per cent in 2025. Authorities have also tightened controls through measures such as mandatory verification of acceptance letters and higher financial requirements to curb fraud.

The government has said it will continue cutting back new student admissions from 2026 to 2028 under its Immigration Levels Plan, underscoring its intention to keep migration at manageable levels.

Temporary worker arrivals also fell markedly. Between January and September 2025, Canada welcomed 48 per cent fewer new temporary workers than in the same period a year earlier — a decline of 158,660. In September alone, 17,515 new temporary workers entered the country.

By the end of September, 1,494,900 people in Canada held only a work permit, while 251,300 held both work and study permits. Officials have argued that reducing temporary worker numbers will help prioritise jobs for residents already in the country and better match immigration flows with labour market needs.

Despite the fall in new arrivals, Canada continues to encourage temporary residents already in the country to transition to permanent status. From January to September 2025, more than 154,000 former temporary residents became permanent residents, accounting for about half of all new permanent residents admitted during the period.

IRCC noted that many of these individuals already have Canadian education, work experience and strong language skills, and typically apply through economic pathways such as Express Entry and the Provincial Nominee Program. The agency said this strategy allows Canada to build on the contributions of people already living in the country while easing pressure on services.

As of September 30, 2025, Canada had 473,860 people holding only a study permit, 1,494,900 holding only a work permit, and 251,300 holding both.

The steep decline in arrivals is expected to ripple through the education and labour markets, with colleges and universities likely to face lower enrolment and sectors reliant on temporary workers adjusting staffing plans.

Under the Immigration Levels Plan, Ottawa aims to reduce the temporary resident population to below five per cent of Canada’s total population. Targets include 155,000 new international student arrivals — 49 per cent fewer than the 2025 target — 230,000 new temporary worker arrivals, down 37 per cent from 2025, and 380,000 new permanent residents, four per cent lower than the current year’s goal. The government also plans to fast-track permanent residence for 33,000 skilled temporary workers between 2026 and 2027, particularly those working in rural communities and high-demand sectors.

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