Canada “no longer competitive” in global talent race
“The impacts of IRCC’s policy changes over the past 20 months are serious, far-reaching and will be long-lasting,” said CBIE president Larissa Bezo, addressing the Parliamentary Standing Committee on Citizenship and Immigration (CIMM) on September 25.
“We may have successfully addressed a numbers issue, but Canada is no longer competitive in attracting global talent,” said Bezo, giving testimony on the International Student Program, which, she said, “has lost sight of Canada’s long-term growth, prosperity, labour market, research and innovation projects”.
The grave warnings follow alarming new IRCC data showing study permit application volumes down by roughly 50% in the first half of 2025 compared to the previous year, according to IRCC data obtained by ICEF Monitor.
What’s more, it’s expected the total number of study permits issued this year will fall far below the government’s target, building on last year’s shortfall, which saw a 48% reduction in study permit issuance rather than the intended 35%.
Alarmingly, new international student arrivals declined by 71% between January and June 2025, said Bezo, adding that the measures had “devastated the system, and Canada’s reputation along with it”.
“Annual caps were followed by plummeting approval rates, drastically increased processing times, and increased applicant requirements,” said Bezo, referring to the introduction of study permit caps in January 2024, setting off a further 16 policy changes from the federal government.
As many commentators warned at the time, Bezo said the changes marked a “serious over-correction” that risk further eroding Canada’s international reputation.
“Without action, there will be continued damage inflicted on our education institutions, labour markets, economic prospects and competitiveness,” she said.
Alongside the study permit caps, Canada’s post-graduation work permit (PGWP) has been subject to considerable policy shifts, including changes to eligibility criteria such as new field of study requirements for non-degree programs and new language standards.
As such, Canadian PGWP approvals are predicted to fall by 30% in 2025 compared to the previous year, with worst-case forecasts projecting the lowest approvals since the pandemic, new analysis has shown.
This comes as international students are increasingly thinking of career outcomes, with 88% of recent survey respondents citing post-study work opportunities as a top concern of students when choosing a study destination, second only to affordability.
We may have successfully addressed a numbers issue, but Canada is no longer competitive in attracting global talent
Larissa Bezo, CBIE
Bezo highlighted the damage being inflicted on the sector, with Canadian institutions announcing 35 site closure, 863 program suspensions and the loss of over 10,000 jobs since fall 2024, warning there would be “many more to come”.
Alongside constrictive policies, Bezo emphasised the damaging repercussions of “corrosive public rhetoric” and called for a repositioning of the domestic narrative to highlight the value of international education to Canadians.
“Canada’s education sector needs a period of government policy stability and predictability. Our global brand needs time to heal,” said Bezo.
“The sector and its students will recalibrate to current policy; however, it requires a predictable policy environment,” she added, echoing the chorus of calls for stability ongoing since the cap implementation.
However, critics have argued that sector leaders must take responsibility for bad practices that gave rise to enhanced regulation – including unsustainable international recruitment – and that placing the blame on the IRCC is “absurd”.
“Acknowledging the problem is step one of any recovery program, I don’t think that’s happened,” one critic told The PIE News under the condition of anonymity.
“As I recall, it was a large number of Canada’s schools and their recruitment networks that set false expectations, destroyed consumer confidence, ruined Brand Canada’s reputation.
“If it wasn’t for IRCC stepping in to stop the damager – the industry would still be engaging in maximum levels of exploitation, not to mention harm to Canada,” they added.
The government has not made clear its plans for the International Student Program beyond consulting with the sector. The PIE understands the final meeting of the study is scheduled for October 9.
Following a meeting of more than 225 sector organisations in May last year, CBIE has been advocating for a new global talent strategy including a “centre of excellence” to provide for policy innovation, research and strategic coordination across international education.
“We need to be clear that this isn’t solely an immigration issue. Talent development and attraction cuts across departments and needs whole-of-government coordination,” said Bezo, indicating CBIE’s willingness to work with government to realise a renewed vision for the sector.
For the critic speaking to The PIE, now is the time to return to “square one”.
“Now everyone knows edu-immigration pathways in Canada offer a fractional success rate,” they said. “So my advice would be to go back to the idea of selling quality education.”
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