Data released by Immigration, Refugees and Citizenship Canada (IRCC) as of June 30, 2025, shows a significant shift in the country’s migration landscape. Between January and June 2025, 214,520 fewer international students and temporary workers arrived in Canada compared to the same period in 2024. Officials say the steep decline marks the early impact of Ottawa’s tighter immigration controls introduced under the 2025–2027 Immigration Levels Plan.
The measures, which include caps on international student permits, stricter work permit rules, and reforms to temporary migration programs, are part of the federal government’s strategy to bring Canada’s immigration system back to what it calls “sustainable levels.” Policymakers argue the new limits are necessary to reduce pressure on housing, healthcare, and infrastructure, all of which have struggled to keep pace with record population growth in recent years.
International students have been among the most affected groups. In June 2025, only 4,185 new students arrived in Canada, a dramatic reduction compared to previous years. Overall, 88,617 fewer students came between January and June 2025 compared with the same period last year.
The decline reflects a series of changes rolled out since 2024. These include a national cap on new study permits, an additional 10 percent cut introduced in 2025, stricter verification of acceptance letters to curb fraud, higher financial requirements for applicants, and the cancellation of the Student Direct Stream, which previously fast-tracked applications from certain countries.
While universities and colleges warn that lower international enrolment could mean financial strain—many institutions rely heavily on international tuition fees—officials maintain that the measures are necessary to restore balance. The government has argued that some programs were exploiting international students, while many students were left struggling with high costs and limited housing.
The numbers for temporary foreign workers also show a sharp decline. In June 2025, 24,058 new workers arrived, and between January and June, 125,903 fewer workers entered Canada compared with the same timeframe in 2024.
The downturn follows reforms to the Temporary Foreign Worker Program (TFWP). In September 2024, Ottawa capped low-wage hires at 10 percent per workplace, with a 20 percent allowance for sectors facing labor shortages. A refusal-to-process rule was also introduced in cities with unemployment rates of six percent or higher. In November 2024, the wage threshold for high-wage positions was raised, meaning more jobs fell under the new restrictions.
Additional reforms limited eligibility for post-graduation work permits and reduced the number of spouses of temporary residents who qualify for open work permits. Together, these policies are designed to encourage employers to prioritize hiring Canadians and permanent residents while addressing public concerns over reliance on temporary labor.
As of June 30, 2025, Canada had 546,562 people holding only study permits, 1,504,573 holding only work permits, and another 312,010 with both work and study permits. Officials caution that while the data shows early signs of change, the full impact will take time to materialize because applications submitted under older rules are still being processed.
Even as Canada reduces new arrivals, it is expanding pathways for temporary residents already in the country to transition to permanent residency. Between January and June 2025, over 100,000 former temporary residents became permanent residents, representing about half of all new permanent residents during that period. Many transitioned through economic programs such as Express Entry and the Provincial Nominee Program, which prioritize candidates with Canadian education, work experience, and strong language skills.
The government’s strategy has sparked debate. Supporters say reducing the inflow of temporary residents is essential to ease the housing crisis and ensure public services are not overwhelmed. Critics, however, warn that fewer international students could weaken universities financially and damage Canada’s reputation as a welcoming destination, while reduced numbers of foreign workers could leave employers struggling to fill critical roles.
What is clear is that the numbers show a turning point. After years of record-setting immigration levels, Canada’s new restrictions are now visibly reshaping the flow of newcomers. The challenge for policymakers will be finding the right balance between maintaining economic growth and ensuring immigration remains sustainable for communities across the country.
About the Author
