Canada to reduce the number of international study permits by 35 per cent:

Miller
Introduction
This chapter aims to analyze demand and supply dynamics in the international
students capping affecting the Canadian job market.To analyze the dynamics of
international student capping, this chapter will examine the following factors:
reduction of competition for entry level jobs,more possibilities for domestic talent,
and concentrate on skills development. After explaining the factors, the chapter will
provide a brief conclusion if international student capping is beneficial to the
Canadian job market.

Reduction of competition for entry level jobs:

Limiting the number of foreign students may lessen the competition for entry-
level jobs among graduates, which could help domestic job seekers particularly in
fields where there is a strong need for skilled labor.Domestic graduates may have an
easier time finding employment since there will be fewer international students vying
for entry-level jobs. Since they may have difficulty breaking into the workforce due to
their lack of experience, recent grads may benefit most from this lessened
competition.The reduction of competition for entry level jobs focus on the following:

 Effect on the labour Market:Reducing the number of international students can

reduce competition for entry-level positions in some industries, especially those
that have a large number of foreign graduates. As a result, domestic job seekers,
especially recent graduates, may benefit from a reduction in job market pressure.
 Preferences of the Employer: Based on things like language skills, cultural fit,
and knowledge of native operations, employers could favor domestic applicants.
Immigrants could have a better chance of finding jobs and gaining valuable
experience by limiting the number of international students.
 Retaining Home Talent: When there is less competition from students from
other nations, graduates from home countries are more likely to stay and support
their local economies and the workforce. The act of doing so may resolve issues
related to brain drain and talent shortages.

More Possibilities for Domestic Talent

 Hiring of Skill: By preventing skilled workers from getting passed over in favor
of foreign applicants, limiting the number of international students can result in
greater recruitment of domestic talent. Recognizing the importance of keeping
qualified individuals on staff, employers may increase the amount they spend on
development and training programs for resident talent.
 Opportunities in the Industry: Talent from within the country may be able to
take advantage of more chances in subjects like STEM and technology, which
have historically attracted a large number of overseas students. Through nurturing
their own talent, countries can produce a more capable labor force with
specialized skills that meet industrial demands.
 Innovation & Entrepreneurship: Indigenous entrepreneurs and inventors may
have an easier time obtaining support and investment possibilities if there are
fewer foreign graduates seeking funds and resources. Economic growth and
competitiveness may be improved as a result.
Concentrate on Skills Development

 Investment in Education and Training: Capping international student numbers

may prompt governments and educational institutions to prioritize investments in
domestic education and training programs. As a result, a skilled workforce can be
developed to meet market demands and drive economic growth.
 Partnerships with the industry: By working together, academic institutions and
business partners can create unique skill-training programs according to specific
demand in the sector. When education meets industry needs, countries can ensure
that their own talent is qualified to enter the workforce.
 Promotion of Continuous Learning: Reducing the number of students from
other countries will encourage people to take advantage of opportunities for
continuous education in order to improve their abilities and adjust to the demands
of a changing labor market. Training and education benefits may be provided by
governments as a way to encourage domestic talent to continue developing
professionally.

Equilibrium Analysis:

Market Adjustment: A decrease in demand might lead excess supply of educational

services.

Adjusting Prices: In order to draw in domestic students, universities may reduce their
tuition costs or look for other sources of income.

Long-Term Consequences: Sturdy disparities may have a long-term impact on the

labor market and school system.

JOB MARKET IN CANADA

According to Statistics in Canada,despite the lower unemployment rate, the

employment rate has also fallen for four consecutive months, because job growth isn’t
close to offsetting a surge in population. Over the past year, employment has risen by
345,000, while the population aged 15-plus has jumped by one million(Lundy,
2024).The unemployment rate stands at around6%,indicating a relatively healthy job
market(Labour Force Survey(LFS),2024) .On a year-over-year basis, employment
rose by 345,000 (+1.7%), while the working-age population, driven by permanent and
temporary immigration, rose by 1.0 million (+3.1%), pushing the employment rate
down 0.8 percentage points.(The Daily — Labour Force Survey, January 2024, 2024)

In Conclusion

Reducing the amount of international student permits might help with some
immigration and domestic job availability issues, but in the long run, it might not be
beneficial to the Canadian labor market. The influx of international students promotes
innovation, economic growth, and cultural diversity. Many international learners also
assist in filling vacant positions in key sectors such as healthcare and technology. As
such, the entire economic impact must be taken into account while deciding whether
to grant overseas students a visa to Canada.

REFERENCES

Canada to reduce the number of international study permits by 35 percent.Miller

(2024, January 31). CTVNews.

https://www.ctvnews.ca/politics/canada-to-reduce-the-number-of-
internationalstudy-permits-by-35-per-cent-miller-1.6736298

The Daily — Labour Force Survey, January 2024. (2024, February 9).
https://www150.statcan.gc.ca/n1/daily-quotidien/240209/dq240209a-eng.htm

Labour Force Survey (LFS). (2024, February 8).

https://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=3701

Lundy, M. (2024, February 9). Canadian economy added 37,000 jobs in January as
unemployment rate fell to 5.7 per cent. The Globe and Mail.

https://www.theglobeandmail.com/business/economy/jobs/article-canada-jobs-
january-unemployment-rate

Canada, E. A. S. D. (2024, February 7). Employment and Social Development

Canada. Canada.ca.

https://www.canada.ca/en/employment-social-development.html