The federal government is considering implementing caps on the number of international students entering Canada. However, business leaders and economists are warning that a broad-based cap may not be the best approach.
A Delicate Balance
Canada has traditionally relied on newcomers to fill gaps in the job sector and drive its economy. The country’s current international student program provides graduates with a pathway to become permanent residents and eventually citizens. By 2025, Canada aims to increase the number of permanent residents to 500,000 annually.
However, some economists have warned that Canada might struggle to meet its immigration targets if it doesn’t improve amenities such as housing and medical care. Housing Minister Sean Fraser recently stated that the government needs to do "serious thinking" about the international student program due to its explosive growth in concentrated areas.
A Cap on International Students: A Blunt Tool?
Matthew McKean, chief R&D officer at the Business Higher Education Roundtable (BHER), a non-profit that includes 30 companies and post-secondary institutions, said a broad-based cap would be damaging for both businesses and the education sectors. However, he suggested that a nuanced approach could be an opportunity for Canada.
"What Canada really does need are people in the skilled trades in manufacturing, in health care, particularly nurses," McKean said. "So, if there is a cap on particular programs, for example, that might be an opportunity for the post-secondary sector to recruit in programs where there is demand."
A Nuanced Approach
McKean’s suggestion is that Canada should focus on specific areas of need rather than implementing a broad-based cap. This approach would allow the country to meet its immigration targets while also addressing the concerns around housing and medical care.
However, not everyone agrees with McKean’s suggestion. Christina Santini, director of national affairs at the Canadian Federation of Independent Business (CFIB), said that a move to put a cap on international students would make it harder for small businesses to fill entry-level positions, which are usually filled by students as they work through to graduation.
Reducing Red Tape
Santini also suggested that the government should focus more on reducing red tape to ensure that homes are built faster. This approach would help address the concerns around housing affordability and availability.
"It could end up having an impact in terms of the available labour," Santini said. "There’s already that labour shortage pressure crunch they are feeling, and they may have to turn down sales and cancel contracts because they don’t have the people to grow."
The Impact on Small Businesses
The CFIB recently conducted a survey among its members, which showed that nearly 57% of small businesses supported the permanent removal of weekly work restrictions for international students. However, 16% opposed it.
Santini said that a move to put a cap on international students would exacerbate the existing labour shortage in Canada. This could have serious consequences for small businesses, which rely heavily on international students to fill entry-level positions.
Conclusion
The federal government is facing a delicate balance between meeting its immigration targets and addressing concerns around housing and medical care. A broad-based cap on international students may not be the best approach, as it could damage both businesses and the education sectors.
Instead, Canada should focus on implementing a nuanced approach that addresses specific areas of need. This would allow the country to meet its immigration targets while also improving amenities such as housing and medical care.
