Conservative MPs are pressing the federal Department of Immigration to explain how policies allowing hundreds of thousands of foreign students unlimited work access have contributed to a spike in Canadian student unemployment.At a Commons immigration committee hearing, MP Vincent Neil Ho said the student unemployment rate has climbed to 18%, questioning why the department has not addressed the impact of its 2023 policy that granted 1,040,985 foreign students unrestricted labour market access.Blacklock's Reporter said department executives declined to link the policy directly to fewer jobs for Canadian students. A November 2025 briefing note from the Department of Employment attributed rising youth unemployment to “large numbers of non-permanent residents,” including foreign students, while avoiding specific mention of the regulatory changes.Former Immigration Minister Marc Miller denied in 2023 that foreign students were displacing Canadian workers, claiming labour shortages meant international students were filling gaps rather than taking jobs away.Associate Deputy Minister Scott Harris told MPs that the department has since reduced the number of incoming students “in part because of changing economic circumstances” but refused to directly acknowledge the 2023 policy’s role in rising youth unemployment..Auditors have documented a surge in foreign student numbers. A report by the Auditor General, International Student Program Reforms, showed applications for study permits peaked at 943,000 in 2019, a 121% increase over four years, while newly-approved permits reached 456,690 in 2023.A 2023 departmental survey found 81% of foreign students took jobs once caps on paid work hours were removed, with 38% working over 30 hours per week off campus. Meanwhile, a June 2025 labour briefing acknowledged that young Canadians are particularly vulnerable to economic shocks but did not mention changes to foreign student work rules.“The government recognizes young people are often the first to feel the impact of economic shocks,” the note stated, highlighting that youth unemployment is rising without identifying the policy decisions contributing to the problem.
