Ibrahim Gardner
Canada has become an increasingly popular destination for international students, with over 1 million international students in 2023, a 29% increase over 2022. This growth has been driven by the popularity of Ontario college programs, particularly among students from India, China, the Philippines, and Nigeria. Canada's immigration policies have also made it easier for international students to obtain multi-year visas, work during their studies, and transition to permanent residency after graduation, providing further incentives for international students to choose Canada. While the exact percentage of international students staying in Canada after graduation is unknown, studies show that less than half remained in their province of study in the year after graduation, with retention rates varying by field of study and province. As Canada continues to attract a growing number of international students, the retention of these graduates contributes to the country's labor force growth and economic development.
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What You'll Learn
- International students in Canada: retention rates by province
- International students in Canada: retention rates by field of study
- International students in Canada: work permits and permanent residency
- International student population growth in Canada
- International students in Canada: enrolment by province
International students in Canada: retention rates by province
International students in Canada are increasingly being viewed as a source of skilled labour, with several measures in place to encourage them to stay. These include the Post-Graduation Work Permit (PGWP) Program, which allows students to stay and work in Canada for up to three years after graduation, and the possibility of transitioning to permanent residency.
The retention rates of international students in their province of study one year after graduation are highest in Alberta and lowest in the Atlantic provinces. Overall, less than half of all international students (43-50%) remain in their province of study in the year after graduation, compared to 80% of domestic students. Five years after graduation, this number decreases to 36% for international students and 73-75% for domestic students.
Retention rates also vary depending on the level of study. 40% of international graduates with a bachelor's degree and 36% of those with a doctoral degree stayed in their province of study in the year after graduation. In contrast, 58% of those with a college diploma remained in their province of study.
The field of study also plays a role in retention rates. The conditional retention rate for business, management, and public administration—the field attracting the largest share of international students—was slightly above average. Meanwhile, the unconditional retention rate for architecture, engineering, and related technologies—the second most popular field—was relatively high at 53%.
A study on push-pull factors related to student retention and integration in Quebec found that approximately 46% of students surveyed intended to stay in Quebec after graduation, with higher retention rates among Quebec-born students (70%) compared to international students (43%) and students from other provinces (35%). Factors influencing students' decisions to stay in Quebec included the program of study, quality of education, studying in English, cost of living, and post-study work opportunities.
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International students in Canada: retention rates by field of study
International students in Canada have been regarded as a source of skilled labour, with regions seeking labour force growth targeting their retention. While there is no clear percentage of international students who stay in Canada, we can look at retention rates in their province of study upon graduation. Overall, less than half of all international students remained in their province of study in the year after graduation, with the rate decreasing to 36% five years after.
When looking at retention rates by field of study, architecture, engineering, and related technologies—the second most popular field among international students—had a relatively high unconditional retention rate of 53%. This field also had one of the lowest shares of international graduates absent from tax data (32%). However, the conditional retention rate in the province of study one year after graduation was middle-of-the-road.
The field attracting the largest share of international students is business, management, and public administration. This field had a conditional retention rate slightly above average compared to other fields, but 9 percentage points lower than domestic students.
At the college level, there was a notable difference in retention rates between international and domestic graduates. International students were much more likely to move to a different province after graduation. This may be because college programs are shorter, providing a faster route to a post-graduation work permit and permanent residency. International students in college programs may also have a stronger desire to immigrate to Canada, as a higher proportion of this group filed taxes in the country.
Retention rates also varied by province, with Alberta having the highest retention rate for international students, and the Atlantic provinces the lowest.
To improve retention rates, universities can focus on creating positive environments and addressing challenges unique to international students, such as academic and social integration issues, language barriers, and mismatched expectations.
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International students in Canada: work permits and permanent residency
International students in Canada on a study permit are eligible to work on or off campus. They can work up to 24 hours a week off campus when school is in session and unlimited hours during school breaks. During the COVID-19 pandemic, international students were permitted to work up to 40 hours per week. After graduation, students can stay in Canada and work by applying for an open work permit for up to three years, known as the Post-Graduation Work Permit (PGWP). This allows them to qualify for permanent residency.
International students do not need to undergo a genuine student assessment to access consecutive educational programs, nor are they required to provide bank statements to prove that their primary intention is to study. They can obtain multi-year visas and open work rights, allowing them to extend their stay and studies.
In June 2024, Canada announced a new plan to transition more international students to permanent residents by offering work permits beyond the current maximum of three years. This plan aims to provide more years of stay through open work permits until international students can integrate into the Canadian job market. It also includes allowing them more time to stay in the country while their educational qualifications are recognised.
The retention of international students in their province of study is increasingly being regarded as a potential source of skilled labour by regions seeking labour force growth. Overall, less than half of all international students remained in their province of study in the year after graduation, with the rate decreasing to 36% five years after graduation. However, among the 58% of international students who filed a tax return in Canada after graduation, approximately 8 in 10 remained in their province of study one year after graduation.
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International student population growth in Canada
Canada has experienced a notable increase in its international student population in recent years, with this demographic now constituting a significant portion of the country's overall population. This growth has been driven by various factors, including policy changes, the appeal of Canadian education, and the country's immigration system.
In 2023, Canada hosted over 1 million international students, marking a substantial increase from previous years. According to data from Immigration, Citizenship, and Refugees Canada (IRCC), the number of international students with active study permits reached 1,040,985 in 2023, representing a 29% increase over 2022. This growth builds upon a 30% expansion in international student numbers in 2022. The COVID-19 pandemic may have been a contributing factor, as relaxed work restrictions during that period made Canada a more attractive destination for international students.
The rise in international students has had a significant impact on Canada's population. As of October 1, 2023, the total number of Canadian residents was estimated at 40.5 million, with international students representing 2.5% of this population. This proportion is even higher in certain provinces, such as Ontario, where international students make up 3.5% of the population. This influx of international students has contributed to Canada's overall population growth, which stood at an impressive 3.2% annually in 2023.
The growth in the international student population has been driven by several factors. Firstly, Canada has actively sought to attract a larger share of international students to sustain its education system and compete with other top host countries. This led to policy changes that made it easier for international students to obtain permanent residency. The federal government removed certain requirements for international students, such as the need to provide bank statements or undergo genuine student assessments, making it more convenient for them to extend their stay. Additionally, the reputation of Canadian educational institutions, the availability of English as a Second Language (ESL) programs, and specific international student scholarships have all contributed to the country's appeal.
Another factor contributing to the growth is Canada's immigration system, which allows international students to work after graduation through open work permits. This provides a pathway to permanent residency, making Canada an attractive destination for those seeking long-term opportunities. In June 2024, the government further extended this benefit, offering work permits beyond the previous maximum of three years, even for students who have studied for just one year in certain programs. This transition plan aims to facilitate international students' integration into the Canadian job market and recognize their contribution to the service industry.
The retention rate of international students in their province of study after graduation is also noteworthy. While less than half of international students remained in their province one year after completing their studies, those who filed tax returns showed higher retention rates, with 8 in 10 staying in their province for the first year after graduation. This rate decreased to 7 in 10 five years after graduation. The retention rates vary by field of study, with architecture, engineering, and related technologies exhibiting relatively high unconditional retention rates.
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International students in Canada: enrolment by province
Canada has seen a rapid increase in the number of international students over the past decade, with a record number of international students enrolled in 2023. International students are present at all levels of education in Canada, including primary, secondary, trades, college, and post-secondary education. The largest number of international students are enrolled at the post-secondary level.
International students are a significant source of labour supply in Canada. The retention of international students in their province of study after graduation is crucial for addressing labour shortages. Provinces with higher retention rates, such as Alberta, benefit from the skilled labour provided by these graduates.
The distribution of international student enrolment varies across Canadian provinces. In 2023, the post-secondary institutions with the highest number of international study permits were:
- Conestoga College of Ontario (30,395 permits)
- University Canada West of British Columbia (13,913 permits)
- Fanshawe College of Ontario (11,706 permits)
The economic impact of international students is significant in certain provinces. In 2015, international student spending in Ontario contributed $5.04 billion to the provincial GDP, increasing to $6.35 billion in 2016. British Columbia also experienced an economic boost, with a GDP increase from $2.39 billion in 2015 to $2.76 billion in 2016.
While international students bring numerous benefits to Canada, there are concerns about their impact on housing affordability and infrastructure stress. The federal government is considering implementing a cap on international student numbers to alleviate these pressures. However, critics argue that this shift overlooks the innovation, culture, and talent that international students bring to Canada.
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Frequently asked questions
Overall, less than half of all international students remained in their province of study in the year after graduation, with the retention rate falling to 36% five years after graduation. However, among the 58% of international students who filed a tax return in Canada after graduation, 8 in 10 remained in their province of study one year after graduation, and 7 in 10 five years after graduation.
International students can stay in Canada by applying for an open work permit lasting up to three years without any restrictions, known as the Post-Graduation Work Permit (PGWP). They can also qualify for permanent residency through the Permanent Residency Pathways. In June 2024, Canada revealed a new plan to transition more international students to permanent residents by offering work permits that extend beyond three years.
Ontario, Canada's most populous province, has long held the largest volume of international students in Canada, with its share of students growing. In 2023, Ontario accounted for 51% of international students in the country.
