Canada sees sharp drop in international student, worker arrivals in January 2026

New data from Immigration, Refugees, and Citizenship Canada shows a sharp decline in the number of international students and temporary workers entering the country at the start of 2026, reflecting the impact of tighter immigration controls.

In January 2026, Canada recorded 7,040 new international student arrivals and 11,850 temporary workers. Total arrivals dropped by nearly 28% compared to January 2025.

The decline was steeper among students, with a 37% year-on-year fall, while temporary worker entries decreased by about 20%.

IRCC has confirmed that the cap on study permits will continue in 2026, with up to 408,000 permits expected to be issued, including extensions.

From January, master’s and doctoral students at public institutions have been exempted from PAL and TAL requirements, although the overall limit remains unchanged.

Despite the drop in new arrivals, Canada continues to host a large international student population. As of early 2026, more than 4.27 lakh Indian students are studying in the country.

The slowdown in inflows has been linked to stricter visa policies, higher rejection rates that reached up to 74% in August 2025, and diplomatic tensions in recent years.

The decline aligns with a broader policy shift aimed at reducing the number of temporary residents and easing pressure on housing, healthcare, and public services. The government has set a target to keep temporary residents below 5% of the total population.

Seasonal data also reflects the trend. August, usually the peak intake period, saw international student arrivals fall from around 79,725 in 2024 to about 45,010 in 2025.

Over the past year, authorities have introduced several measures to control inflows. These include limits on study permits, stricter financial requirements, and tighter verification of admission letters to curb fraud.

Changes have also been made to work permit rules, including restrictions on low-wage hiring and revised eligibility criteria for spouses of temporary residents.

Even with reduced inflows, the total number of international students in Canada remains high. As of Jan 31, 2026, the country had about 460,695 study permit holders, although growth has slowed compared to previous years.