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Canada Sees First Drop in Foreign Workers and International Students in Years: What It Means for Your Immigration Plans

ICC Immigration Inc > Blogs > Announcement > Canada Sees First Drop in Foreign Workers and International Students in Years: What It Means for Your Immigration Plans

For the first time in several years, Canada’s temporary resident population has declined, marking a major shift in the country’s immigration landscape. Between 2024 and 2025, Canada recorded a net decrease of nearly 15,000 temporary residents, including international students and foreign workers—a sharp contrast to the massive growth seen in previous years.

This decline is not accidental. It is the direct result of tightened immigration regulations aimed at controlling temporary resident numbers and easing pressure on housing, healthcare, and employment markets. For anyone planning to study, work, or settle in Canada, understanding these changes is now more important than ever.

A Significant Policy U-Turn in Canadian Immigration

Just one year earlier, Canada added more than 780,000 non-permanent residents. The current decline signals a clear policy reversal. While the overall drop may seem small, it represents a structural change in how Canada manages temporary foreign workers, study permits, and transition pathways to Permanent Residency (PR).

Importantly, these numbers reflect total residents already in Canada, not just new arrivals. The full impact of recent policy changes will continue to unfold as individuals attempt to renew work permits, extend study permits, or apply for PGWPs.

Where Are Temporary Residents Leaving—and Going?

Regions with the Largest Declines

Canada’s largest metropolitan areas saw the sharpest reductions in temporary residents:

  • Toronto CMA experienced the biggest drop, losing more than 44,000 temporary residents

  • Vancouver, Kitchener–Waterloo, Winnipeg, and Hamilton also recorded notable declines

These losses were so large that they outweighed national gains elsewhere.

Regions Seeing Growth

In contrast, several regions—especially in Quebec and Alberta—recorded increases:

  • Montréal led the country with strong gains

  • Calgary and Edmonton continued to attract foreign workers and students

  • Mid-sized centers like St. Catharines–Niagara, Windsor, and Saskatoon also grew

This shift highlights a growing trend toward regional immigration strategies and Provincial Nominee Programs (PNPs).

Why Are Temporary Resident Numbers Falling?

The federal government introduced multiple restrictive measures between 2024 and 2025, including:

  • Low-wage LMIA moratorium in regions with unemployment rates of 6% or higher

  • Reduced validity of low-wage TFWP work permits from two years to one

  • Higher wage thresholds for high-wage TFWP streams

  • Tighter spousal open work permit (SOWP) eligibility, limited to select skilled occupations and programs

  • Stricter PGWP requirements, including language proficiency and field-of-study restrictions

  • Removal of PGWP eligibility for public–private college partnership programs

  • Ban on flagpoling, ending same-day permit processing at borders

  • Study permit cap for 2025, reducing approvals by 10% compared to 2024

  • Introduction of Provincial Attestation Letters (PAL/TAL) for most international students

Together, these policies significantly reduced flexibility for foreign workers, international students, and their families.

What This Means for Your Canadian Immigration Strategy

The era of “easy extensions” and automatic pathways from temporary status to PR is over. Today, success depends on strategic planning, correct documentation, and choosing the right immigration program from the start.

Relying on uncertain or last-minute options can now lead to refusals, status loss, or forced departure from Canada.

How ICC Immigration Can Help You Secure Your Future in Canada

At ICC Immigration, we specialize in helping individuals adapt to Canada’s evolving immigration system with clarity, confidence, and compliance.

Our Core Services Include:

  • Permanent Residency Applications
    We guide you through Express Entry, Provincial Nominee Programs (PNPs), and other PR pathways, ensuring your application is accurate and strategically strong.

  • Work Permits and Study Permits
    Whether you are entering Canada or extending your stay, we help you choose options that align with long-term PR goals, not short-term risks.

  • Family Sponsorships
    Reunite with your loved ones through spousal sponsorship, parent sponsorship, and dependent applications.

  • Expert Legal Immigration Advice
    With constantly changing rules, professional guidance is essential. Our team ensures your application meets current IRCC regulations and avoids costly mistakes.

Rather than relying on uncertain routes or last-resort claims, take control of your future in Canada with a structured, lawful, and sustainable immigration pathway.

Final Thoughts

Canada remains a land of opportunity—but the rules have changed. With temporary resident numbers declining, competition increasing, and policies tightening, professional immigration guidance is no longer optional—it’s essential.

Whether you are already in Canada or planning your journey, ICC Immigration is here to help you navigate the process smoothly and confidently—every step of the way.