SOCI – International Students – September 28, 2023

Date: Sept 2023

Classification: Unclassified

Department: IRCC

Issue:

International students have been impacted by processing delays due to a major increase in the volume of applications. There have also been recent media reports on student vulnerability and housing shortages, sparking concerns.

Proposed Response:

• International students make immense economic, cultural and social contributions to Canada.
• Immigration, Refugees and Citizenship Canada (IRCC) has significantly reduced inventories, as well as processing times for study permit applications, and continues to publish monthly data to keep Canadians up to date on its progress towards reducing backlogs.
• We are reviewing the International Student Program to address a number of challenges, including issues related to program integrity and student vulnerability, which have been caused by the growth of illegitimate actors within the program.

If Pressed

• IRCC is exploring a number of potential initiatives to address fraud, including enhanced Letter of Acceptance verification. We are also looking at approaches, such as a Trusted Institutions Framework, that would hold institutions to higher standards in terms of international student support and outcomes.

If Pressed on Housing

• We recognize that housing affordability and availability are challenges for Canadians and newcomers. My Department is currently undertaking a review of the International Student Program to examine how it can better select and retain top students to Canada.
• We are working closely with provinces, territories, national educational institutions and other partners to address ongoing challenges, including housing and international student fraud.

If Pressed on Processing

• Most new regular study permits are now being processed within the 60-day service standard (57 days, as of August 31, 2023). New study permit applications under the Student Direct Stream (SDS) are being processed at 18 days as of August 31, 2023; the SDS service standard is 20 days.

If Pressed on Potential Impact of PGWP on Wages

• Since Post Graduate Work Permits (PGWPs) are open work permits, data is limited on PGWP holders' wages and occupations.
• However, there are some indications that international students and graduates may face additional barriers related to language, professional networks, and employer biases when transitioning to work in their field of study.

Contact:
Bronwyn May
Director General, Social and Temporary Migration Branch

Approved by:
Louise Baird
Assistant Deputy Minister, Strategic and Program Policy
Tel. No.: 613-437-6752

Background:

Background on Post-Graduation Work Permit (PGWP) Holders

• In 2022, there were nearly 367,000 individuals who held a PGWP, nearly double the number of PGWP holders in 2018.
• The majority of PGWP holders in 2022 resided in Ontario (57%), followed by BC (17%), Quebec (12%), and Alberta (5%).
• Historically, about half of international students obtain a PGWP within five years of their study permit expiring and within 10 years of obtaining a PGWP about 7 in 10 have transitioned to PR. These figures are likely to change moving forward as the number of international students and PGWP holders has sharply increased.

PGWP, Labour Market Participation, and Potential Impact on Wages

• Since PGWPs are open work permits, IRCC has limited mechanisms to collect and monitor information on PGWP holders' wages, the type of work in which they are employed, and the duration of hours they work.
  • A 2018 study by Statistics Canada showed median earnings were highest for those PGWP holders employed in mining and oil and gas extraction, utilities, and public administration which was consistent with the general pattern among all Canadian workers.
  • However, according to this study, the majority of PGWP holders had employment earnings in two sectors: Retail Trade and Food and Accommodation sector.
  • While transitioning to work related to their field of study can be challenging for both domestic and international students, international students and graduates often face additional barriers related to language, professional networks, and employer biases.
• While Statistics Canada maintains a database on temporary resident employment, IRCC will require more robust data than what is currently available to assess the impact of PGWP holders on the labour market.
• Suppression of domestic wages has been a concern among some Canadian economists, particularly linking it to the growing number of temporary residents with authorization to work.

Extensions For Certain PGWP Holders

• Starting April 6, 2023 and expiring December 31, 2023, new temporary measures allow certain PGWP holders to opt in to a facilitative process to extend their work permit. This facilitative measure allows Canada to retain high-skilled talent.
• In addition, as part of these measures, foreign nationals whose PGWP expires between September 20, 2021 and December, 31, 2023 have the opportunity to apply for an additional 18-month open work permit. Those with expired work permits are able to restore their status, even if they are beyond the normal 90-day restoration period. Eligible foreign nationals under this facilitative measure are also issued an interim work authorization which allows them to continue working immediately while they apply for and await processing of their new work permit application.
• Talented and skilled international graduates play a vital role in addressing Canada’s labour shortage, and those nearing the end of their PGWP are already well-integrated into Canada’s labour market. The additional open work permit will allow eligible applicants to continue contributing to the Canadian economy while gaining valuable work experience and preparing for the opportunity to apply for permanent residence.

PGWP Facilitation for Distance Learning

• During the pandemic, several measures were put in place to facilitate distance learning without impacting PGWP eligibility.
• Until December 31, 2023, time spent studying outside Canada will not be deducted from the length of a future PGWP as long as at least 50% of the program of study is completed in Canada. This measure went into effect in August 2022 as a transition from facilitation measures put in place during the height of the pandemic which allowed 100% of the program of study to be completed abroad while remaining eligible for PGWP.

Temporary Lift of Restrictions on Off-Campus Work Hours

• To help address Canada’s broad-based labour shortage, from November 15, 2022 until December 31, 2023, international students who are in Canada and who have off-campus work authorization will be permitted to work an unlimited number of hours, if they submitted a study permit application by October 7, 2022.

On Possible Trusted Institutions

• A ‘trusted institutions’ framework could, as one example, offer expedited study permit processing for applicants destined to institutions that demonstrate they are meeting a higher standard beyond simply being designated to host international students, in terms of international student supports and outcomes. However, it is important to emphasize that no decisions have been made at this point.
• IRCC is having exploratory discussions with a small group of Designated Learning Institutions from across Canada intended to represent the diversity of the sector on how this model could work. IRCC is also consulting the provinces and territories (PTs), as well as national education associations. IRCC will use the feedback to determine next steps.

Update on Processing

• In 2022, IRCC saw an unprecedented volume of applications received for both initial study permits and extensions.
• The Department is seeing an ever-increasing demand for studying in Canada, resulting in growing processing pressures:
  • For the year of 2022, the Department received over 715,000 applications for new study permits (excluding extensions). This compares to approximately 556,000 submitted in 2021, a 28% increase.
  • From January 1 to August 31, 2023, the Department has already received over 608,000 applications for new study permits (excluding extensions), compared to approximately 477,000 submitted for the same period in 2022.
  • Approximately 600,000 study permit applications (excluding study permit extensions) have been processed between January 1 and August 31, 2023, compared to about 445,000 in the same period in 2022.
  • In 2022, approximately over 396,000 were confirmed (the permit holder arrived in Canada).

Improvements to Study Permit Processing

• In an effort to maintain service standards for new study permit applications, IRCC continues to review and update our processing method and introduce more advanced analytics to assist with workload management.
• Processing times for regular study permit applications have remained consistently within the 60-day service standard (57 days as of August 31, 2023). Processing times for expedited SDS study permit applications are 18 days as of August 31, 2023, which is within the 20-day SDS service standard and represents a significant improvement over the 87-day SDS processing time for the same period last year.
• At the end of August 2023, the study permit application inventory was 109,000 (not including study permit extensions), compared to 150,000 at the end of August 2022.
• IRCC continues to work as hard as possible to reduce processing times by leveraging technology to develop tools and new practices.
  • To increase processing efficiency, IRCC implemented a triage tool for study permits to sort applications based on completeness and ease of assessment as well as enable streamlined processing.
  • IRCC has launched automated approvals for study permit extensions and will publish an Algorithmic Impact Assessment.

International Student Volumes and Housing

• With approximately 807,260 total valid study permit holders at the end of 2022, we have reached an all-time high for the number of international students in Canada.
• Housing is a service that many designated learning institutions in Canada provide, but is not an element for decision in the Immigration and Refugee Protection Act or Regulations (which provide the legal framework for IRCC decision making on study permits for international students).
• IRCC is currently reviewing the International Student Program to address pressures it is facing, and is considering a number of options to ensure that international students are well-supported while in Canada. The Department will continue to work closely with PTs, national educations institutions and other key partners in deliberations on alternatives, and will announce any changes once decisions have been made and are ready to be implemented.

Anti-Racism Priorities

• IRCC is committed to a fair and non-discriminatory immigration system and is working to address the Parliamentary Standing Committee’s on Citizenship and Immigration (CIMM) recommendations.
• Initiatives to fight unconscious biases and racism have already been taken: unconscious bias training for decision-makers; provision of Anti-Racism, Diversity, Equity and Inclusion and Anti-Bias workshops; exploring the possibility of further research on racial discrimination of Black immigrants as it relates to their immigration journey; and working on a Gender-Based Plus Analysis of Chinook and the International Student Program.

Potential Pilots to Increase Equitable Access for International Students

• In response to the CIMM report on the Differential Treatment in Recruitment and Acceptance Rates of Foreign Students, IRCC has taken steps to address study permit refusal rates and is exploring new measures that would increase equitable access to the International Student Program for certain underrepresented client groups.
• IRCC is currently refining and developing options on potential pilots to remove systemic barriers, address refusal rates, and promote diversification of the International Students Program.
• IRCC will continue to consult with PTs as we advance these pilots.