Jasmine Grover Content Strategy Manager
Content Strategy Manager | Updated On - Oct 25, 2025
Canada’s reputation as one of the world’s most popular study-abroad destinations is under pressure. New data released by Immigration, Refugees and Citizenship Canada (IRCC) shows a staggering 59.7% decline in new international student arrivals between January and August 2025 compared to the same period last year.
According to IRCC figures, 89,430 students entered Canada during the first eight months of 2025, down from 221,940 in 2024. The month of August — typically a peak intake period — saw a 43% decline, with just 45,380 arrivals compared to nearly 80,000 last year.
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The Numbers at a Glance
| Indicator | Aug 2024 | Aug 2025 | % Change |
|---|---|---|---|
| New Study-Permit Arrivals (Aug) | 79,795 | 45,380 | –43.1% |
| Cumulative Jan–Aug Arrivals | 221,940 | 89,430 | –59.7% |
| Study-Only Permit Holders | 651,230 | 514,540 | –21.0% |
| Work + Study Permit Holders | 368,815 | 287,885 | –21.9% |
| Total International Students in Canada | 1,020,045 | 802,425 | –21.3% |
Source: IRCC, August 2025
What’s Behind the Decline?
The steep drop is not coincidental. Ottawa has introduced a series of policy reforms to manage immigration more tightly and reduce temporary resident numbers. These include:
- Study-permit caps introduced in 2024 and reduced further by 10% for 2025
- Stricter letter-of-acceptance verification and higher proof-of-funds requirements
- Narrowed eligibility for Post-Graduation Work Permits (PGWP)
- Restricted spousal work rights for dependents of some students
The Canadian government describes these reforms as part of a shift toward “sustainability” in international education, balancing growth with housing capacity and labour needs.
India Feels the Impact Most
India, which previously accounted for 39% of Canada’s international student population, has been hit hardest. Reports suggest that in Q2 2025, four out of five study-permit applications from Indian students were rejected, according to BorderPass and PIE data.
This shift comes as Canada faces intense competition from other study destinations such as Australia, Germany, and the UK, which are offering simpler visa routes, lower costs, and clearer work pathways.
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Economic Ripple Effects Across Universities
The decline has sent shockwaves through Canada’s education economy, which depends heavily on international tuition.
Universities and colleges — especially smaller, regionally focused ones — are reporting:
- Hiring freezes and course cuts
- Reduced research funding
- Budget shortfalls tied to lost tuition income
- Lower local spending in housing, retail, and services
International students contribute nearly CA$40 billion annually to Canada’s economy. A 20%+ decline in enrolment is already showing up in budget revisions and slower housing demand in cities like Toronto, Vancouver, and Halifax.
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Fewer Permits, Fewer Jobs
The downturn in study permits mirrors a parallel fall in temporary work permits.
Between January and August 2025, the number of temporary foreign workers entering Canada fell by 146,000 compared to last year — a sign of the government’s broader effort to reduce temporary residents to 5% of the total population by 2026.
The Canadian Bureau for International Education (CBIE) has urged Ottawa to launch a renewed International Education Strategy, emphasizing that international students not only support the economy but also strengthen Canada’s global soft power.
The Road Ahead: A Tightrope for 2026
With new budget and immigration targets due in November, experts expect continued restrictions through 2026.
The government’s challenge lies in balancing sustainability with global competitiveness — ensuring Canada remains attractive while addressing concerns around housing and job saturation.
For Indian and other international students, the “Maple Dream” is still alive — but now comes with higher costs, stricter scrutiny, and fewer guarantees than before.
Key Takeaways
- Canada saw a ~60% drop in international student arrivals in 2025
- IRCC policies tightening study permits and post-study work rights are key drivers
- India, Canada’s largest source of students, faces higher rejection rates
- Universities report budget and staffing challenges
- Calls grow for a new International Education Strategy to rebuild confidence
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