A recent study has revealed that international students and skilled workers are preferring Canada over the United States. The National Foundation for American Policy (NFAP) found that this is because it is difficult to gain an H-1B visa or permanent residence in America and easier to work on temporary status and acquire permanent residence in Canada.

This comes months after Canada announced that it will limit the intake of international students for the next two years. The cap is expected to only allow 3,60,000 students for approved study permits this year. The number is a 35% decrease as compared to 2023.

Explaining the decision, the Canadian immigration department said: “In recent years, the integrity of the international student system has been threatened. Some institutions have significantly increased their intakes to drive revenues, and more students have been arriving in Canada without the proper supports they need to succeed. Rapid increases in the number of international students arriving in Canada also puts pressure on housing, healthcare and other services.” Starting September, Canada will limit ‘temporary residents’, which will impact the applications for citizenship.

In the US, immigration law has been dissuading students, the NFAP study found. “Canada is benefiting from a diversion of young Indian tech workers from US destinations, largely because of the challenges of obtaining and renewing H-1B visas and finding a reliable route to US permanent residence. The Indian influx to Canada has much to do with doors closing in the US,” Peter Rekai, founder of immigration law firm Rekai LLP, said.

Meanwhile, Indian enrollment at Canadian universities rose from 2,181 in 2000 to 128,928 in 2021. This accounts for 37% of the increased enrollment in international students attending Canadian universities between 2000 and 2021.