1. Experts sound the alarm on overreaching federal caps
This year started off with a stark warning that policy makers had “significantly underestimated” the impact of Canada’s 2024 caps, as study permit approvals fell far below government targets for the previous year. The data revealed in the first 10 months of 2024, study permit approval rates hovered just above 50% – resulting in the lowest number of approvals in a non-pandemic year since 2019.
2. Cap allocations shrink by 10% and include graduate students
Despite sector warnings, the government continued to pursue its scale-reduction policy, with cap allocations marking a 10% decrease from 2024 while also including graduate students. One positive shift was the new exemption of exchange students, to ensure Canadians would not lose out on reciprocal study abroad arrangements.
3. Marc Miller removed from immigration post
Marc Miller was ousted from his cabinet position of immigration minister in March following political newcomer Mark Carney’s unexpected federal election victory. While Miller’s removal did little to shift the Liberal government’s policy direction, stakeholders widely welcomed the departure of Miller, who reigned over a period of unprecedented sector volatility and had become notorious for catching stakeholders off guard with unexpected policy announcements, often occurring on a Friday afternoon.
4. Temporary resident numbers drop to their lowest level since the pandemic
Statistics Canada confirmed what colleagues were already feeling when it released data revealing an 11% decline in study permits for Q1 2025 as compared to the previous year. The figures showed the largest drop in temporary residents since the pandemic, a trend the government welcomed as evidence that its immigration reduction measures were working.
5. Cap fallout sees mounting sector layoffs
It emerged that at least 5,000 jobs had been lost across the sector by May this year, with Fanshawe College in London, Ontario, forced to suspend as many as 50 fields of study due to cost-cutting measures. Just one month later, the number of known layoffs surpassed 8,000, as colleagues continued to fight against the “decimation” of Canada’s international education – one of the country’s major export industries.
6. Downturns hit across provinces, proving caps were an “overcorrection”
IRCC data confirmed widespread media reports of Canada’s fast-shrinking international student population. The figures revealed a near-50% reduction in study permits compared to 2024, far surpassing federal targets set by the caps, which experts said had gone “too far, too fast”.
7. Sector strives to show the world Canada is “open for business”
Following nearly two years of federal policy changes wreaking havoc on the sector, colleagues united behind the Canadian Bureau of International Education (CBIE), launching a campaign to show Canada remains “open for business”. As rapid policy changes and mixed public messages dampened Canada’s international reputation and caused uncertainty among students, more than 225 organisations came together to chart a path forward and rebuild confidence in the sector.
8. Study permit goals reduced for 2026 – a move set to be “immaterial”, say experts
Carney’s recently announced 2026 budget saw study permit targets reduced by a further 7% next year, sparking dramatic headlines and fears of further pain to the sector. However, following two years of missed targets and record-low approval rates, experts said study permit issuance “won’t come close” to next year’s reduced target, as they called on the government to urgently fix processing delays and approval outcomes.
9. Graduate students are once again exempted from study permit caps
In a clear sign of support for Canadian innovation, the government released its new Immigration Levels Plan the day after the budget, which saw graduate students exempted from next year’s study permit caps. Not only did stakeholders welcome the news which will ease institutions’ ability to attract high-quality talent, but they also said the provision would free up cap allocations for students below the master’s level.
10. Canada ramps up efforts to attract international talent
After committing CA$1.7bn to attracting global talent in the budget, Ottawa officially launched its international talent initiative in December, which policymakers say is one of the largest recruitment programs of its kind in the world. Another policy that has made the headlines is Canada’s plans for an “accelerated pathway for H-1B visa holders”, as the country strives to benefit from political volatility across its southern border.
