US Policy Changes Reshape Global Talent Landscape, Canada Feels Impact
The Canadian government has implemented 16 federal policy changes since January 2024, significantly impacting the sector. Meanwhile, the USA has seen a collapse in international demand for its master's degrees and a reduction in work permits issued to graduates, raising concerns about skills gaps and innovation.
The Trump administration's hike of the H-1B visa fee to $100,000 has contributed to a 60% drop in international demand for US master's degrees. This, coupled with widespread SEVIS terminations and policy volatility, has made the promise of post-graduation work opportunities increasingly uncertain. The steepest declines in PGWP approvals are occurring in sectors with existing labour shortages, such as healthcare, technology, and advanced manufacturing. If the trend continues, PGWP issuance could fall beneath 130,000 this year, lower than during the pandemic. Engineering graduates have seen a 53% reduction in work permits, with computing and IT, and health and general sciences experiencing reductions of roughly a third. This reduction in international graduates entering the workforce pipeline could exacerbate existing skills gaps and slow innovation in industries relying on entry-level talent.
In response, Canada is receiving 50% fewer study permit applications in the first half of 2025. Stakeholders are urging urgent action to attract talent pivoting away from the USA. Canadian post-graduation work permit (PGWP) approvals are set to fall by at least 30% in 2025, reflecting the broader trend of reduced international interest in US higher education and work opportunities.
The USA's policy changes and reduced work permit issuance are reshaping the global talent landscape. Canada, with its 16 federal policy changes and reduced study permit applications, is feeling the impact. Stakeholders in both countries are advocating for policy adjustments to attract and retain international talent, as the competition for skilled workers intensifies.
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