How Canada’s Immigration Changes Benefit International Students

Why Recent Immigration Changes May Actually Help International Students Settle in Canada

At first glance, Canada’s recent decisions to reduce international student admissions might seem like bad news for those dreaming of building a future here. But if you’re an incoming international student planning to become a permanent resident down the line, these changes could actually work in your favour. Let’s break down why that is — and what it means for your path from study to PR in Canada.

Key Highlights

• Lower international student intake means reduced competition for future PR spots.
• Increased focus on Canadian Experience Class (CEC) benefits graduates with post-graduation work permits (PGWPs).
• Removal of bonus points for arranged employment levels the playing field for open work permit holders.
• Cuts to the Temporary Foreign Worker Program (TFWP) reduce the number of skilled competitors for PR.
• Graduates with Canadian bachelor’s degrees gain extra CRS points and access to longer PGWPs.

Why Fewer International Student Admissions Could Actually Help

It might seem a bit backwards at first: if Canada is accepting fewer international students, doesn’t that make things harder? Not necessarily. In fact, the reduced intake could mean less competition when it comes time to apply for permanent residence (PR).

Here’s the scoop: the federal government has significantly cut the number of new international student permits — from 305,900 in 2025 to just 155,000 in 2026. That’s nearly a 50% reduction. Meanwhile, economic immigration targets are *increasing slightly*, from 232,150 to 239,800. So, in a few years, when today’s students graduate and apply for PR, they’ll be competing with a smaller pool of fellow grads — not a bad deal, right?

Thinking long-term is key here. Many students entering Canada in 2026 for a bachelor’s degree will be studying for four years, followed by up to a three-year PGWP. That puts their PR application timeline around 2032 or 2033. By then, the massive cohorts from 2022–2023 will have already moved on, and their PGWPs will have expired, making room for a new wave of applicants.

How the Canadian Experience Class (CEC) Gives You a Head Start

Canada’s Express Entry system has been prioritizing candidates with Canadian work experience — especially those eligible under the Canadian Experience Class (CEC). And guess who qualifies for that? Yup, international grads working on PGWPs.

To qualify under the CEC, you’ll need at least one year of full-time, skilled work experience in Canada — and it must be gained after graduation, not while studying. The good news? A PGWP is an open work permit, which means you can work for almost any employer in Canada and start accumulating that all-important experience right after graduation.

Since April 2024, the federal government has been focusing its Express Entry draws on specific groups, including CEC candidates. So if you graduate, get a PGWP, and gain a year of skilled work experience, your chances of receiving an invitation to apply for PR could be higher than ever.

And here’s a bonus: if you complete a Canadian bachelor’s degree, you’ll also receive 30 additional points under the Comprehensive Ranking System (CRS), giving your Express Entry profile a nice little boost.

Learn more about the Canadian Experience Class

Why Removing Bonus Points for Arranged Employment Is a Good Thing

In the past, Express Entry gave candidates extra CRS points — 50 or even 200 — if they had a job offer from a Canadian employer. This gave an edge to workers under the Temporary Foreign Worker Program, who often held employer-specific permits. PGWP holders, on the other hand, hold open work permits and usually don’t qualify for these arranged employment points.

But that’s changed. The government has now removed those bonus points for arranged employment, helping to level the playing field. This means PGWP holders — like international student grads — are no longer at a scoring disadvantage compared to employer-sponsored workers.

So, if you’re planning to build your life in Canada after graduation, this policy shift could make it easier for you to compete in the Express Entry pool, particularly if you’ve gained skilled work experience through your PGWP.

How Cuts to the Temporary Foreign Worker Program Reduce Your Competition

The government has also been pulling back on the Temporary Foreign Worker Program (TFWP). Why does this matter for international students? Fewer TFWP permit holders means fewer skilled workers gaining Canadian experience and entering the CEC pool — which again, reduces your competition.

TFWP workers often have several years of skilled foreign experience in addition to their Canadian experience. That combo gives them an advantage under CRS’s skill transferability factors, potentially resulting in higher scores. But with the intake for TFWP being trimmed, there’ll likely be fewer high-scoring competitors in the CEC category — giving you a better shot.

Most international students entering Canada are just starting their careers. If you’re coming straight out of high school or your first post-secondary program, your work experience may not count as “skilled” under Canada’s National Occupation Classification (NOC) system. But that’s okay — because your Canadian education, PGWP, and future work experience here will help you qualify.

What the Future Might Look Like

We can’t predict exactly what Canada’s immigration policy will look like in 2033 — a lot can change in seven or eight years. But based on what we know now, the current policy shifts seem to be setting up incoming international students for better odds at permanent residency in the future.

Lower student intake, more emphasis on Canadian experience, the removal of arranged employment bonuses, and cuts to TFWP all point to a more favourable landscape for graduates with PGWPs. It may not feel like it right now, but if you’re planning a study-to-PR pathway, Canada is still a land of opportunity — and these changes could tip the scales in your favour.

Ready to Start Your Journey?

Thinking about studying in Canada and working your way toward permanent residence? Make sure you’re on the right track. Use our CRS points calculator to see where you stand, or get in touch for personalized support on your study-to-PR journey.

You might also want to explore options like the Manitoba PNP, which can provide additional pathways to PR for international graduates.

Don’t wait — your future in Canada starts with the right plan today.