Canada’s Immigration Slowdown: How Lawyers Are Supporting International Students & Workers
Canada is experiencing a pronounced slowdown in the arrival of international students and foreign workers in 2025. Between January and June, the country welcomed 88,617 fewer international students and 125,903 fewer foreign workers compared to the same period in 2024—a total decline of 214,520 new arrivals. These changes stem from deliberate government policy adjustments—including significantly reduced targets for permanent residents and temporary arrivals under the 2025–2027 Immigration Levels Plan. In response, immigration lawyers are playing an increasingly vital role in helping applicants navigate stricter eligibility requirements, processing delays, and shifting program caps.
Understanding Canada’s Current Immigration Slowdown
Canada has deliberately scaled back its immigration intake in response to mounting pressure on housing, infrastructure, and social services. Under the 2025–2027 Immigration Levels Plan, Canada has set a goal of reducing the temporary resident population to 5% of its total population by the end of 2026, with targets for new student and worker arrivals at 673,650 in 2025, falling to 516,600 in 2026, and slightly rising to 543,600 in 2027. Simultaneously, the cap on study permits has been lowered to 437,000 for 2025, a deliberate 10% reduction compared to 2024, aimed at easing demand on housing and social infrastructure.
The effects of these shifts are already evident: between January and June 2025, study permit arrivals plunged by 133,325, even as work permit holders grew by 262,262, reflecting a pivot toward employment-based arrivals amid student declines. These policy changes create a challenging environment for newcomers, and for international students and temporary workers, securing expert advice from an immigration law firm in Canada can be instrumental. Lawyers specializing in immigration law play a crucial role in guiding applicants through evolving caps, stringent eligibility criteria, and transitional pathways to permanent residence, helping clients navigate uncertainty with confidence.
Key Policy Changes Affecting Students and Workers
Canada has imposed a 10% reduction in study permit issuance for 2025, setting the cap at 437,000 permits, down from 2024 levels. This cap applies broadly, though certain groups—such as kindergarten to high school students, exchange students, and graduate students—are exempt from the provincial/territorial attestation (PAL/TAL) requirement. These changes reflect IRCC’s effort to ease pressure on housing and public services.
Effective January 21, 2025, IRCC narrowed eligibility for family Open Work Permits (OWPs). Now only spouses of international students enrolled in master’s (16-month minimum) or doctoral programs—and spouse workers in high-demand or government-priority occupations—may apply. Dependent children are excluded under the new rules.
Labour Market Impact Assessment (LMIA) processing times have surged—from 58 business days in September 2023 to 165 by March 2025. This delay has resulted in work-status lapses for many temporary workers, affecting their ability to work legally and access essential services. Meanwhile, Canada is raising wage thresholds under the Temporary Foreign Worker Program for LMIAs submitted from June 27, 2025, aiming to reinforce fair compensation.
The Impact on International Students Seeking Study Permits
International students have experienced a sharp decline in new study permit approvals in 2025. In the first half of the year, only 149,860 study permits were issued—down from 245,055 in 2024 and 238,425 in 2023—highlighting the significant tightening of access to Canada for new students. These changes reflect policy shifts aimed at curbing the influx of temporary residents and alleviating pressure on housing and public services.
The reduction has profoundly affected student demographics: new study permit holders dropped by 133,325 between January–June 2025 compared to the same period in 2024, while work permit holders increased by 262,262, indicating a migration trend toward employment-based migration paths. Meanwhile, applications from Indian students fell by 31% in the first quarter of 2025, from 44,295 to 30,650, reflecting how heightened visa requirements are disproportionately affecting some key markets.
Challenges Faced by Temporary Foreign Workers
Temporary foreign workers in Canada are grappling with extensive delays in processing their work permit renewals. Labour Market Impact Assessment (LMIA) processing times have tripled—from 58 business days in September 2023 to around 165 business days by March 2025—resulting in prolonged legal uncertainty, work status lapses, and loss of access to essential services like healthcare.
In response to violations of the Temporary Foreign Worker (TFW) Program, the Canadian government has intensified oversight. From April to September 2024, Employment and Social Development Canada (ESDC) conducted 649 employer inspections—finding 11% non-compliant—and issued over CAD 2.1 million in fines while banning 20 employers from the program.
Moreover, structural constraints like closed work permits further entrench worker vulnerability. These permits tether workers to single employers, limiting their mobility and increasing the risk of exploitation, including wage theft and unsafe work environments. International bodies, including the UN Special Rapporteur, have flagged the system as “inherently exploitative,” urging a shift toward open permits and improved worker protections.
Legal Strategies to Navigate Delays and Denials
Temporary foreign workers facing significant delays in work permit renewals can utilize Canada’s Temporary Public Policy to mitigate employment gaps. This policy allows workers to begin new employment while their work permit applications are pending, provided they meet specific conditions, such as having a valid work permit and a new job offer under the Temporary Foreign Worker Program or International Mobility Program. To expedite this process, applicants must submit their work permit applications online and include the priority code PPCHANGEWORK2020 when notifying IRCC of their intent to change employers. This proactive approach can help maintain employment continuity during processing delays.
In cases where work permits are denied, applicants have the option to appeal the decision through the Immigration Appeal Division (IAD) or request a judicial review in the Federal Court of Canada. Engaging an immigration law firm in Canada can provide strategic guidance in these processes, including preparing compelling submissions, gathering supporting documentation, and representing clients effectively. Additionally, legal professionals can assist in exploring alternative pathways, such as applying for a new work permit under a different program or seeking permanent residency options, depending on the individual’s circumstances.
