They contribute billions to the economy every year and represent a much-needed highly skilled labour force for the future.
by Hannah Hunter, Wasiimah Joomun, Ahmad Baker. Originally published on Policy Options
March 5, 2025
The federal government has recently made significant reforms to Canada’s immigration system, with many of the changes targeting international students.
The number of international students enrolled in Canadian colleges and universities more than doubled over 10 years to 468,087 students in the 2022-23 academic year. Controversy over their impact led Ottawa to cap study permits, restrict post-graduate work permit eligibility and impose stricter regulations to combat fraud in 2024.
This is a mistake. Canada should be doing more, not less, to retain international students because they contribute billions to the economy every year and represent a much-needed future highly skilled labour force. One small change to how much Canadian post-secondary education is counted in terms of obtaining permanent resident status would go a long way to accomplishing this.
The federal changes are destabilizing the post-secondary sector and prompting cuts to offset anticipated revenue shortfall from declining international enrolments. Beyond the financial strain, these reforms are damaging Canada’s image as a welcoming destination for international students.
Over the past five years, Canada’s international student program has experienced significant changes.
The federal international education strategy (2019-24) and temporary migration initiatives drove the rapid growth in study permits, in part to address labour shortages during COVID-19. But some argue this had broader impacts on housing and food availability and prices.
The student surge also coincided with a broader decline in support for immigration, increased hate crimes and the exclusion of first-year international students from at least one food bank.
The challenge of staying in Canada
For many international students, life in Canada is far from easy. Tuition fees for international undergraduates average $40,114 annually in the 2024/25 academic year – more than five times the average domestic tuition – and the rising cost of living has exacerbated financial pressures on them.
In a 2024 Abacus Data survey commissioned by the Canadian Alliance of Student Associations, more than half of all international students reported skipping meals due to financial strain, while one-tenth experienced homelessness – three times the rate of domestic students.
Despite these issues, international students contribute significantly to Canada’s economy and cultural fabric. In 2022, they contributed $37.3 billion to economic activity, resulting in an additional $30.9 billion in GDP. They also enrich our campuses by fostering cross-cultural understanding, spurring innovation and equipping domestic students with global perspectives.
The desire of most international students to remain in Canada after graduation is strong. According to the Abacus Data survey, 92 per cent of international students were open to pursuing permanent residency, with 56 per cent strongly interested in it.
Other research shows employers value local educational experience, while Canadian credentials can lead to faster integration and higher wages for newcomers.
Recent media coverage has highlighted the pervasive issue of underemployment among newcomers. A 2024 report by the C.D. Howe Institute highlights the issue of newcomer overqualification with its associated challenges, including limited professional networks, unfamiliarity with the Canadian labour market, bias from employers against foreign qualifications and the lack of Canadian references or local work experience.
Yet these challenges of economic integration are markedly lower for immigrants trained and educated in Canada as opposed to those trained and educated abroad – a crucial distinction often overlooked in these discussions.
Five years after arriving, newcomers with Canadian post-secondary experience consistently outperform new economic immigrants who don’t have Canadian credentials – even when compared to those with equivalent qualifications from foreign institutions.
This premium becomes even more significant after 10 years, underscoring that the benefits of Canadian post-secondary education are long-lasting and transformative, no matter the type or length of post-secondary credential obtained.
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In the 10 to 11 years after immigration, those with two to five years of Canadian study earned nine to 12 per cent more than new economic migrants without such experience.
This means these Canadian-educated immigrants will experience a higher quality of life, contribute more substantially to the country’s tax base and place less demand on social services. These outcomes underscore why Canadian educational experience should be treated as a key factor when assessing candidates’ eligibility for permanent residency.
Given recent federal reforms, international students currently entering Canada and staying as workers are likely to be even more qualified and motivated. Retaining this top talent is crucial, so it is important to create pathways that encourage these individuals to stay, thrive and contribute to our economy long-term.
With rising competition for increasingly scarce permanent residency spots, international graduates face a formidable challenge to settle in this country.
Under Canada’s points-based comprehensive ranking system (CRS), international graduates earn 15 to 30 extra points for their Canadian credentials – a mere 2.5 per cent of the total maximum score. This undervalues their demonstrated potential and makes them less competitive in an increasingly tight permanent residency process.
Reward Canadian education
Doubling CRS points for Canadian post-secondary credentials – to 30 points for graduation from one- or two-year programs and 60 points for graduation from programs of three years or more – would better recognize the unique value of Canadian education.
This modest adjustment aligns with stated government priorities for in-Canada applicants to become permanent residents and supports international graduates, without increasing immigration numbers or requiring additional spending.
This adjustment wouldn’t be a guarantee of permanent residency but would offer Canadian-educated applicants an edge in an increasingly competitive application process while maintaining the integrity of the immigration system.
CRS reforms alone won’t solve all the challenges international students and graduates face, from skyrocketing tuition to xenophobia. Yet doubling CRS points for Canadian credentials represents a practical, meaningful step toward retaining the world-class talent we want to attract, as well as cultivating the social and economic benefits they bring.
If Canada aspires to secure its future prosperity, we must put our trust in those we’ve educated to build it.
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This article first appeared on Policy Options and is republished here under a Creative Commons license.