The Canadian model for turning international students into permanent residents has inspired countless bright young people to aspire to study in the Great White North and achieve their potential. However, times are changing, and students already feel the ripple effects of changing immigration policies.
With 2023 seeing 471,808 new immigrants entering Canada, the highest ever number for a single year, the federal government has reacted, and it’s having far-reaching consequences for students.
In this guide, we examine how students shape immigration, the entry pathways, and some of the changes coming into force that could impact your legal status and future.
How Canadian Immigration is Changing
Canada relies on a steady flow of migrants to fill critical jobs, supports its higher education system, and maintains healthy population levels. According to the latest stats, immigrants represent 23% of the Canadian population, the greatest proportion in 150 years.
It’s a trend expected to continue, with one study estimating that immigrants could account for 34% of the Canadian population by 2041. Of course, this has had significant political impacts that are fueling change at the federal level, which naturally impacts students.
According to a study in the National Post, 60% of Canadians said immigration was too high and the country is accepting too many newcomers. High migration numbers have created tension, and it has spurred government action.
Former prime minister Justin Trudeau announced his plans to cut migration in 2024 and 2025, with the number of student permits being reduced by 35%. It appears that students have been specifically targeted, as it was reported that in 2023, international student numbers in Canada grew by 29%.
Regarding raw numbers, Canada is the third most popular destination for international students, after the UK and the U.S.
Student-to-Permanent Resident – How to Make Your Home in Canada
Before going any further, what are your options for staying in Canada after applying for and receiving a student permit?
The process is easier than you might think, especially compared to other countries, including our neighbour to the south. According to one study, the number of international students who became permanent residents soared by 78% between 2019 and 2023.
Let’s focus on the three pathways most students use to achieve permanent residency. We strongly recommend getting legal support via an experienced immigration lawyer to give yourself the best possible chance of success.
1. Post-Graduation Work Permit (PGWP)
The PGWP program allows you to work in Canada for up to three years, allowing you to acquire work experience. Although not in itself a form of permanent residency, it’s a type of temporary residency that you qualify for after completing a program at a Designated Learning Institution (DLI), as long as it’s at least eight months long, studying full-time and if applicable in an eligible field of study.
The point is to improve your chances via the permanent residency pathways.
2. Express Entry System
The Express Entry System is Canada’s points-based immigration system for skilled workers. International students may also use this process. It’s designed to help fill critical skills shortages in Canada and keep the country moving.
Several programs fall under the Express Entry System:
Canadian Experience Class (CEC)
International students who can prove a year of work experience in a skilled role through the PGWP can qualify for the CEC. The catch is that the work experience must be categorized as a National Occupational Classification (NOC) skill level 0, A, or B.
You’ll be awarded points based on a range of factors, including:
- Age
- Education
- Work experience
- Language proficiency
Federal Skilled Worker Program (FSW)
If you have skilled work experience outside Canada, you can qualify under the FSW program. It’s especially relevant to students who have already worked in skilled positions before they started studying. Note that the same Comprehensive Ranking System (CRS) score is used as in other programs, including education and language proficiency. The work experience must be at least 1 year of continuous work.
Federal Skilled Trades Program (FSTP)
If you’ve been trained or have worked in a skilled trade, you can qualify for permanent residency under the FSTP program. Although the CRS scores are similar to the other two Express Entry System programs, the difference is that you must also demonstrate expertise in your trade of at least 2 years full-time within the 5 years before applying.
Provincial Nominee Program (PNP)
Many provinces have special PNP programs to attract skilled migrants to fill the needs of specific provinces. International students may use the PNP pathway if they’ve completed their studies in a particular role within a particular province.
Some provinces have easier programs to apply for than others. For example, British Columbia and Ontario have long had dedicated PNP pathways aimed at international graduates.
Note that it usually comes with caveats, such as being required to live and work within the province for a certain period or already having a job offer from a local employer.
The Economic Contribution of Migrant Students
International students bring much in the way of economic contributions to the Canadian economy, helping to keep it solvent and growing over the years. We’ve seen significant increases in the contribution attributed to Canada’s openness to international students in a short space of time.
According to the latest calculations, international students brought $21.6 billion to the economy in 2018. By 2022, the contribution of international students was $37.3 billion.
Naturally, the economic contribution isn’t just measured in tuition fees and the money they spend while they’re here. It also encompasses what migrants bring to the labour market. Currently, the numbers tell two stories.
According to Immigration, Refugees and Citizenship Canada (IRCC), figures from May 2021 showed that 35% of recent immigrants were employed in low-skilled jobs. On the other hand, 40% of recent migrants worked in higher-skilled occupations.
For students specifically, most who graduate and remain in Canada do find work soon after. In 2023, 88.6% of the 2020 graduating class were employed, slightly less than the 91% of Canadian graduates from the same year. Of course, there’s evidence to show that many of these students go into lower-skilled roles, with a report finding that international students earned 19.6% less than Canadian graduates within three years of graduating.
In other words, there’s a mixed bag when it comes to the fates of graduating students. Although it can be argued that overall, international students bring tremendous value to the Canadian economy, the other side of the coin has also spurred changes to the immigration system.
Canadian Immigration Changes in 2025 for International Students
We already know that the federal government has capped student permits for 2025, with many universities struggling to tackle the implications of fewer international students. However, many provinces are already transforming their migration pathways, particularly in relation to PNPs.
Naturally, pressure from the electorate to better manage immigration numbers and align permanent residency rights with the current realities of the job market has resulted in action. Despite these changes, demand doesn’t seem to have dropped, thus making the process more competitive than ever.
We’ll focus on British Columbia and New Brunswick, which have made the most dramatic changes impacting international students.
British Columbia
British Columbia has seen one of the biggest drops due to a reduction in federal allocations. The province has got only 4,000 nominations available for 2025. It’s an enormous blow because it already had 5,200 pending applications when the news was confirmed.
Canada’s Pacific province has been forced to alter its requirements to prioritize the strongest candidates. The new rules include:
- B.C. will only accept 1,100 new applications in 2025.
- Healthcare workers, entrepreneurs, and in-demand workers are to be fast-tracked.
- A pause on all general and occupation-specific invitations.
- International Post-Graduate (IPG) stream applicants will no longer receive guaranteed nominations and will be placed on a waitlist.
- New international student pathways will be delayed indefinitely.
New Brunswick
New Brunswick released the Student Connection stream program in 2023. It was designed to offer a streamlined process for international graduates to receive permanent residency. For 2025, the program has been cancelled.
However, if you already have a job offer, you could still qualify under the Skilled Worker and the Employment Pathway Stream. If you’re trying to gain work experience as a recent graduate via low-skilled industries like retail and hospitality, these roles have now been limited for qualification purposes.
Shifting Pathways for Students Within the Canadian Immigration System
Federal government policy has impacted PNP programs the most, with several provinces essentially being forced to cripple their programs to comply with the latest laws coming out of Ottawa. However, although PNPs have spiked in competition, students still have options.
The Express Entry pathway appears to be the best pathway for many students. After all, if you’re studying and working in Canada, you are earning points as part of the CEC program already. Moreover, high-demand industries have been holding draws that favour those who have already received a Canadian education and work experience.
So, where is Canadian immigration focusing on in terms of study-to-permanent residency pathways? Right now, the priorities are in:
- Healthcare
- Technology
- Entrepreneurship
- Trades
- Agriculture
What all of these have in common is that there are significant skills shortages, with not enough Canadian-born candidates to fill the gaps. Holding qualifications and work experience in any of these categories will give you a massive advantage as the number of students receiving permanent residency drops.
Why Hiring an Immigration Lawyer is More Important Than Ever
Working with an immigration lawyer gives students an advantage in navigating the complex permanent residency process. For a start, with so many options, a consultation can help you find the best pathway based on your unique circumstances, ensuring you’re pursuing the right direction.
A lawyer can help you prepare your application and ensure you meet all the eligibility requirements from day one. Countless students are not approved for permanent residency simply because they didn’t fill out the application correctly or missed a deadline.
It’s also worth mentioning that the immigration system for international students is still likely to see more changes in the pipeline, aligning with the change in government. What applied a few years ago doesn’t necessarily apply to now, which is where a lawyer can help you. Additionally, if you are rejected, a lawyer can analyze the reasons for rejection and represent you as part of the appeals process.
International students are undoubtedly one of the key driving forces behind Canadian success. But the system is changing, and that can leave graduates lost and confused. At AKM Law, we support dreamers like you in dealing with the bureaucracy and giving you the best possible chance of success. Start your journey from student to permanent resident by scheduling your consultation now.
