The number of international student arrivals in Canada has witnessed a dramatic decline in 2025, as new data from Immigration, Refugees and Citizenship Canada (IRCC) shows a substantial fall compared to the same period last year.
Key Facts
- Between January and August 2025, Canada recorded about 89,430 new international student arrivals, compared with 221,940 for the same period in 2024—a drop of nearly 60%.
- In August 2025 alone, only 45,380 new study-permit holders arrived, compared with 79,795 in August 2024—representing a year-on-year fall of around 43%.
- The total number of international students (those with study permits) in Canada as of August 31, 2025, fell to 514,540, down significantly from previous levels.
Why Is This Happening?
Policy & Permit-Cap Changes
The Canadian government introduced several policy changes aimed at recalibrating its international student and temporary resident intake. Key drivers include:
- National cap on new study permits: In early 2024, Canada set an annual cap of 360,000 study permits.
- A further reduction of about 10% in 2025 across provinces and territories.
- Stricter verification of acceptance letters from institutions and higher financial-proof requirements for applicants—aimed at reducing fraud and ensuring students can manage living costs.
Labour-Market & Post-Study Work Changes
- Changes to the Post‑Graduation Work Permit (PGWP) rules have made pathways from study to work (and ultimately permanent residence) more constrained.
- Tighter rules around student-spouse work permits and more selective temporary foreign worker entry also appear to be influencing decisions.
Capacity Pressures & Infrastructure
The government has cited pressures on housing, infrastructure and community services in major education-destination provinces as part of the rationale for scaling back growth in temporary resident numbers.
Implications of the Drop
For Canadian Universities & Colleges
With such a steep fall in new arrivals, Canadian educational institutions stand to be impacted financially. International students frequently pay higher tuition and therefore help subsidise the broader operations of universities and colleges. The shrinkage in enrolments may force institutions to re-think budgets, programmes and growth strategies.
For Prospective Students (Especially from India)
For many Indian students, Canada has been a top destination, offering study plus work-permit opportunities. The reduction in new seats and stricter rules means:
- More competition for fewer spots.
- Higher financial buffers required.
- Less guarantee of post-study work or staying pathways.
As one report notes, India — which once made up about 39% of Canada’s international student body — will feel the squeeze. The Times of India
For Local Economies
Regions and cities that previously benefited from substantial inflows of students (housing, part-time employment, cultural diversity, local spending) may now face diminished contributions from the international-student sector.
For Canada’s “Brand” in Global Education
Canada has long been seen as a welcoming destination with clear pathways. This sharp drop signals a pivot in policy and may influence global perceptions of Canada as a study-abroad option.
Outlook: What to Watch
- Will the intake remain low or rebound? While the policy caps and verification rules were introduced recently, the full effect is still unfolding. Whether Canada will ease measures or maintain the stricter regime remains key.
- Which institutions/regions will be most affected? Provinces heavily reliant on international-student tuition may feel the impact first.
- Competitor countries’ responses: Countries like Australia, UK, Germany may pick up students who would have otherwise gone to Canada.
- Longer‐term labour/immigration links: If Canada tightens post-study pathways further, the attractiveness for international students may decline more.
Conclusion
The international student arrivals in Canada have fallen by nearly 60% year‐on‐year for the January–August 2025 period, and are down about 43% in August alone compared to August 2024. The drop is the result of deliberate policy changes by the Canadian government to cap study permits, tighten eligibility, and reduce temporary resident numbers for sustainability reasons. For students, educational institutions and local economies, the implications are significant—and the global education landscape may shift as a result.
