'Study Visas Shouldn't Guarantee Residency': Canada Re-Evaluates Immigration Policy Amid Rising Costs

Canada is re-evaluating its long-term visa policy for foreign students, amid growing concerns about immigration and population growth, according to the country’s Immigration Minister Marc Miller.

In a phone interview with Bloomberg, Miller revealed Canada’s Federal and provincial officials are mulling ways to align the number of international students with labor market needs. He stressed that while Canada has traditionally used its universities and colleges to attract educated immigrants, “study visas should not imply a guarantee of future residency or citizenship.”

“That should never be the promise,” he said. “People should be coming here to educate themselves and perhaps go home and bring those skills back to their country.” This comes as Canadian Prime Minister Justin Trudeau’s government is facing increasing pressure due to the rising cost of living, intense housing competition, and higher unemployment rates.

Earlier this year, Canada introduced a cap on international student visas, projecting fewer than 300,000 new permits this year, down from about 437,000 last year. Canadian Officials are now scrutinising which students should be allowed to stay after their studies. Miller noted that Canada needs to ensure that jobs available to international students match their qualifications. “There’s a conversation about reflecting labor needs and how we match post-graduate work permits to an increasingly contracting shortage of labor in provinces,” he explained.

The number of people in Canada holding post-graduate work permits (PGWPs) surged dramatically, with 132,000 new holders in 2022, a 78% increase from four years earlier. This rapid growth has prompted discussions about adjusting immigration policies to better align with labour market demands. In the interview, Miller also underlined concerns about the misuse of temporary foreign worker programs, pledging to reduce the proportion of temporary residents to 5% of the population, down from nearly 7%.

He noted recent protests in Prince Edward Island, where foreign workers have expressed frustration after the provincial government reduced permanent residency nominations for sales and service roles. “There is a growing perception that Canada is less welcoming to students than before,” Miller acknowledged. However, he believes this shift is beneficial, as it refocuses the study visa program on its original intent: education rather than as a pathway to permanent residency.