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Jan 20, 2026

Canada records first annual drop in foreign workers and international students

Canada records first annual drop in foreign workers and international students
New Statistics Canada data analysed by CIC News show that the number of temporary residents—foreign workers and international students—fell by 14,954 between January 2024 and September 2025, reversing several years of steep growth. Large metropolitan areas bore the brunt: Toronto lost 44,792 temporary residents and Vancouver 10,098, while Quebec and Alberta posted modest gains that partly offset the declines. (m.economictimes.com)

Policy shifts explain much of the contraction. Since mid-2024 Ottawa has tightened Labour-Market Impact Assessment (LMIA) rules for low-wage jobs, capped study-permit approvals, introduced higher wage thresholds for high-wage work permits and narrowed eligibility for post-graduation work permits. Together, these measures have slowed both new arrivals and renewals. (m.economictimes.com)

For employers dependent on international talent, the data signal a more competitive environment. Industries such as hospitality and retail—already facing LMIA moratoria in high-unemployment regions—may need to accelerate automation or domestic recruitment. Conversely, employers in Quebec, Calgary and Edmonton could find an expanded pool of candidates as those provinces buck the national trend. (m.economictimes.com)

Canada records first annual drop in foreign workers and international students


Meanwhile, VisaHQ can help both employers and prospective applicants adapt to the shifting landscape by streamlining work-permit, LMIA and study-permit paperwork through its online platform. Its Canada page (https://www.visahq.com/canada/) provides up-to-date requirements, personalized document checklists and professional guidance, helping users avoid common pitfalls under the new rules.

International students planning 2026 intakes should note that study-permit caps remain in force and that fields of study not on the labour-shortage list may no longer lead to a work-permit pathway. Consultants recommend applying early and double-checking program eligibility. (m.economictimes.com)

From a policy standpoint, the retreat in temporary-resident numbers helps Ottawa inch toward its goal of reducing the temporary-resident share of Canada’s population to below 5 percent by 2027—an objective set amid pressure over housing and infrastructure capacity. (m.economictimes.com)
VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.
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