Two years after implementing international student enrollment caps, Canada is grappling with unintended consequences that threaten its economic competitiveness.

While the reforms successfully eased rental market pressures and addressed public concerns about immigration levels, they have triggered sharp declines in critical fields.

Graduate programs in electrical and computer engineering saw enrollments plunge by 21.4 percent between September 2023 and 2024, with similar drops across STEM disciplines.

The situation is compounded by alarming retention figures: highly educated immigrants are leaving Canada at twice the rate of other newcomers, particularly in high-demand sectors like information technology, engineering, and finance.

With Canada’s fertility rate at a historic low of 1.26 and a skills shortage costing an estimated $2.6 billion annually, the country’s ability to maintain workforce levels and economic growth hangs in the balance.

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