What falling foreign worker and international student figures really mean and where people are still moving
For the first time in several years, Canada has hit an unexpected turning point: the total number of foreign workers and international students living in the country has declined year over year.
It’s a modest drop on paper, but it signals a much bigger shift in how Canada is managing temporary immigration especially after years of record-breaking growth.
Here’s a clear breakdown of what’s happening, where the numbers are falling, and why this change matters.
A rare reversal in Canada’s temporary resident growth
Between 2024 and 2025, Canada recorded a net decrease of 14,954 temporary residents, including people holding work permits and study permits.
That may not sound dramatic at first glance until you compare it to what came before.
Just one year earlier, between 2023 and 2024, Canada added a staggering 781,075 non-permanent residents. That surge happened before most of the federal government’s new immigration controls were put into place.
In other words, this latest decline marks a sharp U-turn from years of rapid expansion in foreign worker and international student numbers.
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Big cities saw the biggest declines
The overall drop was driven almost entirely by Canada’s largest urban centres.
Across major metropolitan areas, temporary resident numbers fell by 20,611, with losses concentrated in:
Ontario
British Columbia
Manitoba
These declines were partially offset by gains in Quebec and Alberta, as well as smaller population centres across the country.
Interestingly, smaller cities and communities actually saw a slight increase, gaining 3,524 temporary residents over the same period.
This suggests that while Canada isn’t necessarily becoming less attractive overall, newcomers are being redirected intentionally or not, away from its most crowded cities.
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Temporary residents vs. new arrivals: an important distinction
It’s important to note that these figures reflect the total number of temporary residents already living in Canada, not the number of people newly arriving.
New arrivals have been slowing down since 2024, but the full impact of stricter immigration rules takes time to show up in the overall totals. Many people already in Canada are only affected when they apply to extend or renew their permits.
That delay explains why the numbers are just now starting to dip.
Emigration also increased
Adding to the shift, 120,016 people emigrated from Canada between 2024 and 2025, further contributing to the net decline in temporary residents.
Where temporary resident numbers dropped the most
Here are the Census Metropolitan Areas (CMAs) with the largest net losses in non-permanent residents:
Toronto stands out sharply. Its decline alone is more than three times the national net decrease, underscoring just how much growth elsewhere helped soften the overall impact.
Note: CMAs are Statistics Canada regions that include multiple neighboring municipalities around a central city. For example, Toronto, Mississauga, and Brampton are separate cities but all fall under the Toronto CMA.
Where temporary resident numbers increased
Despite the national decline, several regions saw notable gains particularly in Quebec and Alberta:
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These gains highlight a growing trend: international students and foreign workers are increasingly settling outside Canada’s most expensive housing markets.
Why are temporary resident numbers falling?
The decline didn’t happen by accident. Between 2024 and 2025, the federal government rolled out a series of policies aimed at tightening access to temporary status.
Key changes include:
Stricter rules for foreign workers
Moratorium on low-wage LMIAs: As of September 26, 2024, low-wage Labour Market Impact Assessments are no longer processed in regions with unemployment rates of 6% or higher (updated quarterly).
Shorter work permits: Low-wage TFWP permits are now capped at one year, down from two.
Higher wage requirements: The high-wage TFWP threshold is now 20% above the regional median wage.
Limits on spousal open work permits
Spousal open work permits are now restricted to spouses of:
Skilled workers in TEER 0–1 or select TEER 2–3 occupations
Graduate students in doctoral programs, master’s programs of 16 months or longer, or select professional degrees
Eligibility also depends on occupation type and permit length.
Tighter rules for international students
Post-Graduation Work Permit (PGWP) changes:
New language requirements for applications submitted after November 1, 2024
Field-of-study restrictions for certain programs
Graduates of public–private college partnership programs became ineligible for PGWPs as of May 15, 2024
Study permit cap for 2025:
Applications capped at 550,162
Only 437,000 permits to be issued a 10% reduction from 2024.
Provincial or Territorial Attestation Letters (PAL/TAL): Required for most new study permit applicants.
Other notable changes
End of COVID-era visitor-to-work permit pathway (August 24, 2024)
Ban on flagpoling for same-day permit processing at ports of entry (December 23, 2024)
What this shift means going forward
Canada hasn’t shut the door on foreign workers or international students but it’s clearly trying to slow the flow and spread newcomers more evenly across the country.
Large cities are feeling the impact first, while smaller communities and provinces like Alberta and Quebec continue to attract new talent.
For anyone planning to study or work in Canada, the takeaway is simple: the rules matter more than ever, and timing, location, and eligibility details can make a big difference.
Final thoughts
This first year-over-year drop in temporary residents may be small, but it marks a meaningful change in Canada’s immigration direction. As policies continue to evolve, prospective students and workers should stay informed and plan carefully because Canada’s immigration landscape is no longer operating on autopilot.
Disclaimer:
This article is for informational purposes only and does not constitute legal or immigration advice. Immigration policies and requirements can change at any time. For personalized guidance, consult official Government of Canada sources or a licensed immigration professional.
