In a bid to tackle concerns about high tuition fees and student exploitation, Canada is imposing a temporary, two-year cap on new international student visas starting in 2024. This move, expected to reduce new permits by 35% in the first year, primarily targets undergraduate programs while exempting master’s, doctoral degrees, and existing permit holders.
Official data from 2022 indicates that the majority of foreign students, approximately 40%, come from India, with China ranking second at around 12%.
Canada’s appeal as a destination for international students has undeniable benefits. It boosts the country’s skilled workforce and cultural diversity. However, the rapid influx has triggered a housing shortage and raising concerns about the quality of education being imparted.
The attraction of post-study work permits draws many international students to Canada. This route to permanent residency makes Canada stand out among its competitor destinations. However, the surge in student numbers has come at a cost, pushing rental prices upwards by a staggering 7.7% in just a year. This affordability crisis has dented Prime Minister Justin Trudeau’s popularity, with opposition leader Pierre Poilievre capitalizing on public anxieties in recent polls.
Beyond the immediate housing crunch, the government is also grappling with concerns about the educational experience itself. The influx of students has raised questions about the quality of education offered by some institutions, particularly those operating as private colleges. The fear is that some institutions prioritize financial gain over delivering a solid academic foundation.
This balancing act presents a difficult challenge. Canada wants to maintain its attractiveness to international students, recognizing their valuable contributions to the country. Yet, it also needs to address the legitimate concerns about housing affordability and ensure the integrity of its education system.
Immigration Minister Marc Miller explained the cap aims to ensure quality education and protect students from institutions with inadequate support. This decision, however, could significantly impact Indian students, who form a large portion of Canada’s student intake.
The government also announced that starting September 2024, students enrolled in programs delivered via public-private partnerships will lose eligibility for post-graduate work permits. This particularly affects Ontario, where such partnerships have witnessed a surge in international student enrolment.
Officials point to two main reasons for these changes: firstly, addressing the system’s integrity by preventing institutions from exploiting students for financial gain. Secondly, managing resource pressures on housing, healthcare, and other services associated with rapid population growth.
While the cap might intensify competition for student spots and present challenges for qualified Indian students, the Canadian government hopes it will ultimately foster a more ethical and sustainable student visa system. This includes protecting student well-being, safeguarding against unfair competition for legitimate institutions, and ensuring a genuine educational experience for international students in Canada.
“Our goal is to ensure a balanced immigration system that addresses housing challenges, prioritizes legitimate academic institutions, and considers the needs of our aging workforce,” stated Miller. He acknowledged that a cap is not a universally applicable solution and stressed the importance of verifying student enrolment offers and financial means.
The Canadian government has set ambitious immigration targets in recent years, aiming to welcome 485,000 newcomers in 2023 and 500,000 in each of 2025 and 2026. Over 300,000 temporary residents, including international students and migrant workers, arrived in Canada in the third quarter of 2023 alone.
The Canadian government plans to assess the feasibility of a cap in the first and second quarters of 2024, with consultations with provinces and stakeholders expected to inform the final decision and potential policy adjustments.
International students contribute approximately CAD 22 billion (USD 16.4 billion) annually to the Canadian economy. The cap on foreign student intake will impact several educational institutions that had expanded their campuses with the anticipation of a sustained influx of students.
Ontario, being the most populous province, has been the primary recipient of international students. Per media reports, various sectors, including restaurants and retail, have expressed concerns, warning that a cap on foreign students could result in a shortage of temporary workers.
Across Canada, the hospitality industry is grappling with labour shortages, currently experiencing nearly 100,000 vacancies. International students constituted 4.6% of the 1.1 million workers in the food service industry in 2023, a Reuters’s report said last week.
Canadian banks have experienced advantages from the growing number of international students, as each student is required to possess a Guaranteed Investment Certificate (GIC) of more than CAD 20,000, serving as a prerequisite to cover living expenses.
In response to the developments, the University of Toronto issued a statement expressing its readiness to collaborate with all levels of government.
In these developments, are there any messages for India here as the country battles both housing crisis and poor quality of higher education? Or are we watching out a war of attrition between China and Canada for Indian students, workforce, and the talent pool? (IPA Service)
