Colleges Ontario warns of harms from student visa cap
, BNN Bloomberg
The association representing Ontario colleges is warning of “long-lasting repercussions” from a federal cap on international student visas, and it’s asking for changes to the controversial policy move.
“The federal government’s cap on study permits for international students is essentially a moratorium by stealth that is already causing significant and unnecessary upheaval for students, employers and communities,” Colleges Ontario said in a Thursday statement.
The group that represents 24 Ontario public colleges accused the federal government of rushing its decision without consulting colleges.
“Ontario’s public colleges are calling for the federal government to treat the post-graduate credentials at public colleges the same way it treats the post-graduate credentials at universities and to exempt them from the cap,” the statement said.
The group added that it has already been working with the province to address some of its concerns.
It asked that the federal government delay requirements for study permit letters of attestation until a provincial process can be enacted.
Under the new policy, Immigration, Refugees and Citizenship Canada (IRCC) said each study permit must have a letter of attestation from the province or territory as of Jan. 22, but provinces and territories have until March 31 to create a process for the attestation letters.
The group also requested that the federal immigration minister “engage in a dialogue” about exemptions for students in high-demand programs, along with removing barriers to entry into high-demand programs.
The IRCC did not immediately respond to a request for comment from BNNBloomberg.ca for a response to the statement from Colleges Ontario.
What is the international student visa cap?
Their calls come days after Immigration Minister Marc Miller announced a two-year cap on international student admissions to Canada. It included a 35-per-cent reduction in new study visas this year, with some provinces like Ontario seeing a reduction of 50 per cent more.
Miller said this week that he hopes the cap will give governments time to curb a system he said takes advantage of elevated international student tuition, and in some instances, provides poor education.
He said the federal government will work with provinces that did not take action as fast as he would have liked to address the issue.
The government will also bar students from accessing postgraduate work permits beginning on Sept. 1 if the school follows a private-public model, Miller said.
Over the next few weeks, the cap will also see that work permits are only accessible to the spouses of students enrolled in masters programs, doctoral programs and professional programs like medicine and law.
The policy is also being seen as a response to upward pressure on housing prices coming from record-high numbers of immigrants, including international students, entering the country at a time of limited housing supply.
Ontario Colleges called the policy an “attack” on the college system.
“Ontario’s public colleges are very concerned about the attacks on a high-performing, efficient public college system – impacting our reputation with potentially long-lasting negative repercussions,” Colleges Ontario said.
With files from the Canadian Press
Bank of Canada 'keeping an eye' on student visa cap: Rogers
, BNN Bloomberg
The Bank of Canada is keeping an eye on the federal cap on international student visas, particularly its potential effects on rental housing inflation.
This week, Ottawa announced a two-year cap on international student visas, which would see the number of new foreign students in the country cut by 35 per cent.
Bank of Canada Senior Deputy Governor Carolyn Rogers was asked Wednesday to comment on the policy move as it relates to housing market pressures.
In a Wednesday press conference following the central bank’s latest interest rate decision, Rogers said the bank is not in a position to comment on government policy. But she said they are observing the change and any potential effects it may have on inflation in the housing market, particularly for rental costs.
“What’s happened in the Canadian economy over the last year is we had a particularly big surge in population growth through immigration. It came at a time when there was constrained (housing) supply. You can see this very clearly, most clearly really in the housing sector, in particular in rents,” she told reporters.
“The policies that were announced are on their way to relieving some of that pressure,” she continued.
“We’ll see how they play out, but we will keep an eye on that. It’s definitely one of the things putting pressure on the housing components of inflation.”
Economist warns of consequences
According to the office of Immigration Minister Marc Miller, international education brings $22 billion to the Canadian economy and supports more than 200,000 jobs in Canada.
It’s for that reason that Randall Bartlett, senior director of Canadian economics at Desjardins, warns that any tweak to Canada’s temporary resident numbers, including students, could have harmful effects on the economy.
“There are going to be some consequences when it comes to overall economic activity generated by foreign students coming to Canada, as well as the negative consequences for post-secondary institutions in Canada who have backfilled a lack of financial support from governments with tuitions from foreign students,” he told BNNBloomberg.ca in a phone interview earlier this week.
The move has also ruffled some feathers at the education level.
Philip Landon, interim president and CEO of Universities Canada, said international students amount to as many as 25 per cent of students at some schools and most pay a significant premium to enroll in a Canadian institution, which has some schools worried.
“The potential for a significant financial blow to universities and colleges across the country is definitely there and we’re concerned about that,” he said.
With files from The Canadian Press
, BNN Bloomberg
The Bank of Canada is keeping an eye on the federal cap on international student visas, particularly its potential effects on rental housing inflation.
This week, Ottawa announced a two-year cap on international student visas, which would see the number of new foreign students in the country cut by 35 per cent.
Bank of Canada Senior Deputy Governor Carolyn Rogers was asked Wednesday to comment on the policy move as it relates to housing market pressures.
In a Wednesday press conference following the central bank’s latest interest rate decision, Rogers said the bank is not in a position to comment on government policy. But she said they are observing the change and any potential effects it may have on inflation in the housing market, particularly for rental costs.
“What’s happened in the Canadian economy over the last year is we had a particularly big surge in population growth through immigration. It came at a time when there was constrained (housing) supply. You can see this very clearly, most clearly really in the housing sector, in particular in rents,” she told reporters.
“The policies that were announced are on their way to relieving some of that pressure,” she continued.
“We’ll see how they play out, but we will keep an eye on that. It’s definitely one of the things putting pressure on the housing components of inflation.”
Economist warns of consequences
According to the office of Immigration Minister Marc Miller, international education brings $22 billion to the Canadian economy and supports more than 200,000 jobs in Canada.
It’s for that reason that Randall Bartlett, senior director of Canadian economics at Desjardins, warns that any tweak to Canada’s temporary resident numbers, including students, could have harmful effects on the economy.
“There are going to be some consequences when it comes to overall economic activity generated by foreign students coming to Canada, as well as the negative consequences for post-secondary institutions in Canada who have backfilled a lack of financial support from governments with tuitions from foreign students,” he told BNNBloomberg.ca in a phone interview earlier this week.
The move has also ruffled some feathers at the education level.
Philip Landon, interim president and CEO of Universities Canada, said international students amount to as many as 25 per cent of students at some schools and most pay a significant premium to enroll in a Canadian institution, which has some schools worried.
“The potential for a significant financial blow to universities and colleges across the country is definitely there and we’re concerned about that,” he said.
With files from The Canadian Press
Student visa cap will have economic, social consequences: experts
, BNN Bloomberg
Experts warn that Canada’s new cap on international student visas raises social and economic concerns while having a potentially “marginal” impact on housing prices.
On Monday, the federal government announced a two-year cap on international student admissions that would see new study visas cut by 35 per cent in some provinces.
Canada had more than 1 million international study permit holders as of December. The office of Immigration Minister Marc Miller has said that some institutions are taking advantage of the high tuition rates international students pay, while offering a poor education and exacerbating the country’s housing crunch.
“Through the decisive measures announced today, we are striking the right balance for Canada and ensuring the integrity of our immigration system while setting students up for the success they hope for,” Miller said in a Monday news release on the announcement.
, BNN Bloomberg
Experts warn that Canada’s new cap on international student visas raises social and economic concerns while having a potentially “marginal” impact on housing prices.
On Monday, the federal government announced a two-year cap on international student admissions that would see new study visas cut by 35 per cent in some provinces.
Canada had more than 1 million international study permit holders as of December. The office of Immigration Minister Marc Miller has said that some institutions are taking advantage of the high tuition rates international students pay, while offering a poor education and exacerbating the country’s housing crunch.
“Through the decisive measures announced today, we are striking the right balance for Canada and ensuring the integrity of our immigration system while setting students up for the success they hope for,” Miller said in a Monday news release on the announcement.
Economic consequences
International education brings $22 billion to the economy and supports more than 200,000 Canadian jobs, according to Miller’s office.
A drop in those dollar figures raises economic concerns for Desjardins economist Randall Bartlett.
Bartlett, senior director of Canadian economics at Desjardins, wrote in a recent report that closing the door to temporary residents, including international students, would deepen the recession and lower Canada’s gross domestic product, while an increase those numbers could help Canada avoid a recession altogether.
“When we look at the measures introduced today, which will significantly reduce the number of foreign students that receive study permits here in Canada, it looks to me like the federal government is making policy on the fly,” Bartlett told BNNBloomberg.ca in Monday phone interview.
“There are going to be some consequences when it comes to overall economic activity generated by foreign students coming to Canada, as well as the negative consequences for post-secondary institutions in Canada who have backfilled a lack of financial support from governments with tuitions from foreign students.”
International education brings $22 billion to the economy and supports more than 200,000 Canadian jobs, according to Miller’s office.
A drop in those dollar figures raises economic concerns for Desjardins economist Randall Bartlett.
Bartlett, senior director of Canadian economics at Desjardins, wrote in a recent report that closing the door to temporary residents, including international students, would deepen the recession and lower Canada’s gross domestic product, while an increase those numbers could help Canada avoid a recession altogether.
“When we look at the measures introduced today, which will significantly reduce the number of foreign students that receive study permits here in Canada, it looks to me like the federal government is making policy on the fly,” Bartlett told BNNBloomberg.ca in Monday phone interview.
“There are going to be some consequences when it comes to overall economic activity generated by foreign students coming to Canada, as well as the negative consequences for post-secondary institutions in Canada who have backfilled a lack of financial support from governments with tuitions from foreign students.”
Economist predicts 'marginal' house price impact
Bartlett believes the move will help cool some of inflation drivers, such as rent prices and consumer goods. But he predicted that housing price relief related to the policy change will be small, as other factors like high interest rates put pressure on the market.
“I think it's going to be pretty marginal in terms of the impact on providing that relief on the cost of housing,” he said.
“Demand isn't the only thing driving up rent prices right now. Interest rates are at the highest level they've been in a couple of decades and inflation back in 2022 was the highest in 40 years, so those high borrowing costs, high input costs, as well as strong demand are leading to higher rents.”
Bartlett believes the move will help cool some of inflation drivers, such as rent prices and consumer goods. But he predicted that housing price relief related to the policy change will be small, as other factors like high interest rates put pressure on the market.
“I think it's going to be pretty marginal in terms of the impact on providing that relief on the cost of housing,” he said.
“Demand isn't the only thing driving up rent prices right now. Interest rates are at the highest level they've been in a couple of decades and inflation back in 2022 was the highest in 40 years, so those high borrowing costs, high input costs, as well as strong demand are leading to higher rents.”
Family impacts
Sarom Rho, an organizer with Migrant Workers Alliance for Change, said the changes unfairly blame international students for Canada’s housing crisis and “cruelly” separate working-class families, as the cap also includes limits on family members of international students.
“It's not right. It's not cool,” she said. “Families deserve to be together. So we're calling on the federal government to reverse this decision.”
Rho made the case that immigration is not to blame when it comes to Canada’s high housing prices, noting that home costs skyrocketed during the pandemic, when immigration was at its lowest.
Statistics Canada data show residential property prices climbed 6.3 per cent in 2020, compared to just 0.7 per cent in 2019. Canada only welcomed 184,500 new permanent residents that year, compared to 341,000 in 2019 and 401,000 in 2021.
“Immigrants and international students are being scapegoated,” Rho said.
“We as people are being told that we should be divided and distracted from who's really responsible and that's the failures of government policy and particularly runaway profiteering. There are a group of people and institutions and corporations in this country who are making a killing off of our shared precarity, and that's not something that any of us want.”
In a statement, a spokesperson for Immigration, Refugees and Citizenship Canada acknowledged the economic growth that international students bring to Canada, but said the government needed to take action on issues “that have made some students vulnerable.”
“They are not responsible for the shortage of housing, but the growth in the arrival of international students adds significant demand for housing and other services that all Canadians must be able to access,” the statement said.
With files from The Canadian Press Jan. 23,2024
Sarom Rho, an organizer with Migrant Workers Alliance for Change, said the changes unfairly blame international students for Canada’s housing crisis and “cruelly” separate working-class families, as the cap also includes limits on family members of international students.
“It's not right. It's not cool,” she said. “Families deserve to be together. So we're calling on the federal government to reverse this decision.”
Rho made the case that immigration is not to blame when it comes to Canada’s high housing prices, noting that home costs skyrocketed during the pandemic, when immigration was at its lowest.
Statistics Canada data show residential property prices climbed 6.3 per cent in 2020, compared to just 0.7 per cent in 2019. Canada only welcomed 184,500 new permanent residents that year, compared to 341,000 in 2019 and 401,000 in 2021.
“Immigrants and international students are being scapegoated,” Rho said.
“We as people are being told that we should be divided and distracted from who's really responsible and that's the failures of government policy and particularly runaway profiteering. There are a group of people and institutions and corporations in this country who are making a killing off of our shared precarity, and that's not something that any of us want.”
In a statement, a spokesperson for Immigration, Refugees and Citizenship Canada acknowledged the economic growth that international students bring to Canada, but said the government needed to take action on issues “that have made some students vulnerable.”
“They are not responsible for the shortage of housing, but the growth in the arrival of international students adds significant demand for housing and other services that all Canadians must be able to access,” the statement said.
With files from The Canadian Press Jan. 23,2024
Slowing immigration will reveal dark economic picture: Royce Mendes
BNN Bloomberg
Mortgage renewals at elevated rates have already put Canada in a recession, according to a top economist and strategist at Desjardins who says the country’s immigration boom is masking the problem.
Royce Mendes, managing director and head of macro strategy at Desjardins, said Canadians who renewed their mortgages at much higher rates have already cut down their spending to service their debt.
“Canadians who have been renewing mortgages have already been diverting a lot of income and then spending away from businesses in Canada … now towards debt service,” he told BNN Bloomberg in a television interview on Thursday.
Immigration slowdown could reveal economic picture
That slowdown has been hidden from Canada’s economic data, Mendes contended, as a record number of newcomers have arrived in Canada over the past year.
Mendes said he expects population growth from immigration will slow this year due to a shortage of housing and new federal policies aimed at reducing the pace of immigration.
Ottawa has already begun looking at ways to slow immigration, introducing a two-year cap on international students and slowing its immigration targets.
Once an immigration slowdown takes hold, Mendes said he expects Canadians will have a truer picture of the economy.
“We won't have that extra boost to (the gross domestic product) and we're going to see the cumulative effects of these mortgage renewals start to show up a lot more clearly in the data,” he said.
“As we move forward, we expect that the economy is going to dip into at least a mild recession this year.”
The case for earlier rate cuts
As the economy darkens, Mendes said he’s observed the Bank of Canada “moving towards a more dovish stance.”
Mendes predicted interest rates will begin to come down in April, which is slightly sooner than some economists’ predictions.
“In my view, if they start a little bit earlier, it gives them the opportunity to be more gradual,” he said.
“I think there are some economists out there who have a later start date for interest rate cuts, but then they might have the Bank of Canada cutting more than 25 basis points at a particular date.”
An earlier rate cut would also offers relief to more Canadians, Mendes argued, because 1.5 per cent of Canadian mortgage holders renew each month, amounting to thousands of people.
“Waiting a few months can mean a big difference for a lot of Canadians,” he said,
“The economy, as I said, is not only facing the challenge for mortgage renewals, (but) population growth, the one driver of economic activity over the past year, is going to be slowing.”
