International Students: Boosting Canada’s Economic Resilience
The Importance of International Students
International students significantly contribute to Canada’s research, workforce development, and economic growth. As Canada faces challenges with its largest economic partner, recognizing the value of international education is crucial for enhancing the country’s resilience.
Unlike unstable trade agreements and fragile supply chains, international education offers a stable, long-term economic and social advantage.
Economic and Research Benefits
In 2018, international students contributed $21.6 billion to Canada’s post-secondary institutions, local communities, and GDP. By 2022, this figure increased to $37.3 billion, accounting for over 23% of Canada’s total service exports and around 5% of total merchandise exports.
These economic contributions surpassed those from industries like softwood lumber and auto parts. Moreover, international students drive cutting-edge research in fields such as AI, clean energy, biotechnology, and climate science, strengthening Canada’s innovation ecosystem and global competitiveness.
International students also act as vital ambassadors, diversifying trade connections and expanding Canada’s global reach.
Policy Changes and Consequences
Despite their value, recent policy shifts risk undermining Canada’s position as a top destination for global talent. In early 2024, the federal government imposed a two-year cap on new study permits, which would mean approximately 360,000 study permits would be approved in 2024 – a decrease of 35% from previous years.
However, institutions fell short of the imposed cap due to the rushed, poorly managed roll-out that amplified disruption beyond expectations. The government plans further cuts in 2025 and 2026, capping approvals at 437,000 and restricting master’s and PhD students for the first time – limiting access to Canada’s research ecosystem.
Talent, Innovation, and Global Standing
This policy shift is concerning given Canada’s ongoing innovation and productivity challenges. Canada lags behind its peers in research and development intensity, private sector innovation, and technology adoption. In 2022, Canada’s research and development spending was just under 2% of GDP, well below the OECD average of around three per cent.
Many small and medium-sized businesses rely on university partnerships for research and development. Cutting international graduate student numbers disrupts these collaborations – hindering innovation at a time when Canada can least afford it.
Policymakers argue that restricting international student permits will ease labour market pressures. However, the real problems with the labour market lie in skill mismatches, underemployment, and employer hiring biases – not the number of international students.
Addressing Systemic Issues
International students are more than workers – they’re entrepreneurs, innovators, and future job creators. Canada risks losing bright minds to more welcoming countries if clear pathways for them to stay, contribute, and build businesses aren’t established.
If Canada is serious about building a stronger, more competitive economy, it must address the systemic issues that stand in the way of international student success. This includes modernizing credential recognition, expanding co-op programs, internships, and mentorships, and protecting international students from misinformation and questionable recruitment practices.
Employers need to be educated about immigration pathways to reduce hiring hesitancy. The government also must create a stable and predictable immigration policy framework to give businesses confidence in hiring international graduates.
As Canada continues to face labour shortages and growing economic and political volatility, international education remains a strategic asset. It fuels research, diversifies trading partners, supports innovation, and supplies the workforce Canada needs for long-term prosperity.
The future of Canada’s economy depends on its ability to attract and retain the thinkers, creators, and innovators who will define the next generation of progress. At this critical moment, Canada must decide if it will invest in the talent that fuels innovation, or close the door on opportunity.
Isaac Garcia-Sitton is Associate Faculty, School of Education and Technology, Royal Roads University.
This article was first published on The Conversation.
