International students serve as a substantial source of income and job creation for Canada’s middle class. The Immigration, Refugees, and Citizenship Canada (IRCC) agency asserts that international education plays a pivotal role in the country’s future prosperity.
The economy, driven by international students, generates approximately USD 20-22 billion in revenue annually, encompassing tuition fees at public and private universities in Canada, taxes, and rental income. Canadian Immigration Minister Marc Miller anticipates a historic high of 900,000 international students in the country this year, with the trend on an upward trajectory in recent years.
Indian students significantly contribute to this phenomenon. A 2020 report by Global Affairs Canada titled “Economic Impact of International Education in Canada” underscores this. The report states, “The total annual expenditures of international students, including their visiting families and friends, contributed $18.4 billion and $22.3 billion to economic activities in Canada in 2017 and 2018, respectively. This translates into a $16.2 billion and $19.7 billion contribution to Canada’s GDP in 2017 and 2018, respectively.” In 2017, the intake supported 180,041 jobs in the Canadian economy, which increased to 218,577 jobs in 2018.
The report further highlights that students from India make the most substantial contributions. Since 2015, the number of Indian students moving to Canada on educational visas has multiplied. In 2015, a total of 31,920 students from India obtained study permits or educational visas, representing 14.57% of the total educational permits granted to international students that year. This percentage increased to 41.13% six years later. In 2022, out of a total of 549,260 study permits issued to international students, 225,940 were granted to students from India. In 2023, educational visas for 1,75,021 Indian students have been approved so far, accounting for 40% of the total visa applications received for all international students.
The report also emphasises that “as international students’ expenditures represent revenue for goods and services from overseas, they are Canadian exports of education services”. In 2017, this amounted to 15% of Canada’s total service exports, which increased to 17.4% in 2018.
Canada faces the challenge of a rapidly aging population, resulting in a shrinking workforce. Statistics Canada highlights this issue, stating, “The working-age population (persons aged 15 to 64) has never been older. More than 1 in 5 persons (21.8%) in this population is close to retirement, aged 55 to 64. This proportion represents an all-time high in the history of Canadian censuses.” This situation is expected to worsen over time. Policymakers in Canada view international students as a solution to this crisis, with hundreds of thousands of educated professionals becoming permanent residents each year, aligning with the IRCC’s conclusion that “international education is indeed going to be a key driver of Canada’s future prosperity”.
Are international students being treated well?
In 2011, Canada hosted 239,000 international students, a number that increased to 621,000 in 2021. According to an analysis published in The Globe and Mail, international students pay up to five times more in tuition and admission fees than Canadian students. In return, they do not receive adequate support and face challenges related to their careers, access to healthcare facilities, and the affordability of housing units. The analysis suggests that “Governments and postsecondary institutions need to view international students as more than cash cows and make real investments to ensure that they have a high-quality experience while studying here”. Thus far, many international students report receiving little government assistance.
The looming housing crisis is another concern, as the number of international students continues to rise rapidly. Toronto Dominion (TD), a leading financial services institution, warns of a potential housing shortfall of about half a million units. Canada, despite being the world’s second-largest country, has a sparsely populated base of just 38.2 million people. Increased international student enrollment necessitates more housing units, making it increasingly unaffordable for international students who must bear these costs.
International students in Canada are granted part-time work permits during their time in educational institutions to support their living expenses and pay tuition fees. However, they are required to pay taxes on their earnings, equivalent to what domestic students pay. Working part-time, they earn only minimum wages and often find themselves in financially precarious situations if not supported by their families back home.
Could this be seen as exploitative labour?
A recent report from Western media outlet Bloomberg highlights allegations from many international and Indian students who claim they are being used as cheap labour in Canada.
Canada is grappling with a labour shortage, prompting the government to extend work permits for 500,000 international students already in the country. These students were allowed to work more hours and were granted an additional 18 months after graduation to find employment. However, even after their applications were accepted, many struggled for months or even a year to secure a job. During this time, they had no other option but to rely on their savings or family support, with little to no access to income, healthcare, or social protection.
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