FEDERAL IMMIGRATION POLICY CHANGES AND THEIR IMPACTS ON CANADA’S WORKFORCE AND POST-SECONDARY INSTITUTIONS (2025)

Issue

Recent changes to federal immigration policy are threatening Canada’s ability to address critical workforce shortages, sustain the competitiveness of its post-secondary education system, and uphold its global reputation as a premier destination for international education. These changes disproportionately impact the country’s ability to attract and retain international talent, particularly graduate students, who play a central role in Canada’s research, innovation, and economic development.

Background

International education has been a cornerstone of Canada’s economic and social development, contributing $22 billion annually to the economy and supporting over 170,000 jobs. International students enrich Canada’s academic institutions, fill critical workforce gaps, and serve as a pipeline for skilled immigration.

However, recent policy changes, including study permit caps, processing delays, and reduced eligibility for post-graduate work permits (PGWPs), have created significant challenges for students, institutions, and the broader economy:

• Permit Processing Delays: Canada’s lengthy and inconsistent processing times leave students and institutions in limbo, undermining confidence in Canada as a study destination.
• Study Permit Caps: Restrictions on graduate student permits jeopardize research and innovation priorities, particularly in fields critical to Canada’s economy.
• Lack of Policy Clarity: Abrupt and poorly communicated policy changes damage Canada’s reputation and hinder institutional planning.

These challenges have resulted in declining international student enrolment, particularly in graduate programs, and increased uncertainty for students and institutions. Addressing these issues is critical to maintaining Canada’s global competitiveness and ensuring its immigration system supports national and regional priorities.

The Post-Graduation Work Permit Program (PGWPP) is a key tool for retaining international talent trained in Canada, allowing graduates of eligible institutions to gain Canadian work experience and pursue permanent residency. However, current eligibility excludes part-time students—many of whom are already active in the workforce—and limits participation from private institutions, despite their capacity to quickly respond to labour market needs.

Public institutions often face multi-year curriculum approval timelines, while private institutions can more rapidly develop industry-aligned programs, especially in rural areas where public options are limited. Expanding access to the PGWPP would encourage more international graduates to settle in underserved regions and contribute to local economic development.

Accordingly, the Chamber urges the federal government to make several changes to address the shortfalls in this important area of public policy. Potential changes should include:

• Empower Provinces to Align PGWP Eligibility with Regional Economic Needs: Grant provinces and territories the authority to designate programs eligible for PGWPs, enabling them to address regional labor market priorities while maintaining national immigration standards.
• Enhance Permit Processing Standards and Efficiency: Establish globally competitive service standards for study and work permit processing and expedite processing for institutions with strong academic standards and ethical recruitment practices. Implement seamless transition mechanisms for students transferring between institutions or programs. Implement measures to ensure that international students affected by processing delays or policy changes are not left in precarious situations.
• Adjust Graduate Student Permit Caps to Align with Canada’s Research and Innovation Priorities: Collaborate with provinces, territories, and post-secondary institutions to review and adjust graduate student permit caps, prioritizing programs contributing to Canada’s economic growth, innovation, and workforce development.
• Develop a National Vision for International Education: Establish a clear, cohesive strategy for international education that aligns with Canada’s economic and research goals by coordinating efforts between federal, provincial, and institutional stakeholders. Conduct and publish an independent transparent assessment of the economic and social effects of recent immigration policy changes, particularly on post-secondary institutions, regional economies, and Canada’s innovation ecosystem. Avoid further disruptive policy changes until the full impact of recent reforms has been evaluated.
• Establish a Clear Pathway to Permanent Residency for Graduates: Create a structured pathway to permanent residency for graduates holding PGWPs to ensure Canada retains skilled talent trained in its institutions.

THE CHAMBER RECOMMENDS

That the Federal Government:

1. Undertake a coordinated policy response to safeguard the international education system, strengthen Canada’s workforce, and ensure immigration reforms reflect long-term economic and regional priorities.
2. Expand the Post Graduate Work Permit program’s eligibility to include students from part-time programs, rural campuses, and students in accredited private post-secondary institutions.