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‘Risk penalizing the good with the bad’
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The federal government will have to be “careful” and “nuanced” with its potential plan to put a cap on the number of international students that enter Canada to ensure that it doesn’t hurt the country’s ability to attract “top talent,” business leaders and economists say.
On Aug. 22, housing minister Sean Fraser told reporters that the government will need to do some “serious thinking” when it comes to the international student program, which has seen immense growth in concentrated areas, as part of the government’s plans to ease existing housing pressures.
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Experts, though, said that a broad-based cap may not be a good idea.
“A cap to international students would be a pretty blunt tool to respond to some legitimate concerns,” said Rebekah Young, an economist at the Bank of Nova Scotia. “Broad-based caps risk penalizing the good with the bad. The government should look to work with — and reward — those academic institutions that welcome international students responsibly.”
Diana Palmerin-Velasco, a senior director at the Canadian Chamber of Commerce, echoed a similar sentiment, and said a potential cap on international students is something that needs to be considered “very carefully” since it might prevent students from fully contributing to Canada’s economy.
“International students are a significant source of talent that should not be underestimated,” she said. “However, we also have a responsibility to protect vulnerable international students who might fall prey to unethical practices and dubious promises.”
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.
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But 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.
Fraser on Aug. 22 said temporary immigration programs — including the one for international students — were not designed to see the “explosive growth” they have “in a short period of time.”
He said the number of students some institutions enrol is five to six times higher than their capacity, and that these institutions exist “purely to profit off the backs of vulnerable international students.”
He added that the federal government would work closely with institutions to come to a solution.
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, but 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,” he 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.”
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But Canada’s largest association of small and mid-sized businesses believes the government should focus more on reducing red tape to ensure that homes are built faster.
Christina Santini, director of national affairs at the Canadian Federation of Independent Business, said 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.
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She said nearly 57 per cent of small businesses supported the permanent removal of the weekly work restrictions international students have, according to a February survey conducted on about 3,000 CFIB members, while 16 per cent opposed it.
“It could end up having an impact in terms of the available labour. There’s already that labour shortage pressure crunch that they are feeling,” Santini said. “They may have to turn down sales and cancel contracts because they don’t have the people to grow.”
• Email: nkarim@postmedia.com
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