Canada's international student and temporary worker intake has sharply declined, with new international students numbering only 7,040 and temporary workers at 11,850 in January 2026. This represents a 37% reduction in student arrivals and a 20% decrease in workers compared to January 2025. The decline is largely due to stricter immigration policies, including increased financial requirements and a more rigorous verification process for admission letters. Indian students, who form a significant portion of the international student body, are particularly affected, with rejection rates reportedly reaching 74% last year. The Canadian government has decided to maintain a cap of 408,000 study permits for 2026, despite a slight relaxation for master's and PhD students. The changes are part of a broader strategy to manage the growing population of temporary residents and alleviate pressure on housing and social services. The peak admission season in August has also seen a drop, from nearly 80,000 arrivals in 2024 to about 45,000 in 2025, reflecting the ongoing challenges in attracting new international students.