The Canadian government’s decision to raise the cap on international student work hours to 24 per week, from the current limit of 20, may seem like a solution to rising living costs and a struggling job market. However, critics warn that this move could have unintended consequences, especially as Canada faces its highest unemployment rate since May 2017, excluding the pandemic years.
Announced by Immigration Minister Marc Miller, the new work-hour policy, set to take effect this fall, aims to “strike a balance” between helping students financially and ensuring they succeed academically. Yet, with Canada’s unemployment rate rising to 6.6% in August—despite adding 22,000 part-time jobs—some experts fear that allowing students to work more hours may deepen existing problems, both for students and the broader labour market.
Students Facing a Tough Job Market
The increase in permitted work hours comes at a time when students are already facing a particularly tough employment environment. Statistics Canada reported that the unemployment rate for students returning to school in the fall was a staggering 16.7%—the highest since 2012, barring pandemic years. With full-time job opportunities shrinking and population growth swelling the labour pool, many students are left competing for a limited number of part-time positions, which typically offer lower pay and fewer benefits.
By allowing students to work more hours, the government may be inadvertently worsening these conditions. With more students flooding the part-time job market, competition will likely increase, further driving down wages and making it harder for students to secure meaningful employment.
Compromising Education for Work
One of the greatest concerns surrounding this policy shift is the potential for students to sacrifice their education in the pursuit of income. While the government hopes the new cap will help students balance work and academics, the reality is that many students may feel pressured to prioritize work to cover living costs—especially in major cities like Toronto and Vancouver, where rent and other expenses have soared.
Working more hours might offer short-term financial relief, but it could lead to long-term academic struggles. Studies have consistently shown that students who work more than 20 hours a week often see declines in their academic performance, putting their future prospects at risk. Overburdened by the demands of both school and work, international students could find themselves in a precarious situation, where neither their education nor their financial goals are fully met.
Limited Job Growth Amid Broader Economic Weakness
The broader Canadian labour market is also showing signs of strain. August saw part-time job gains but a continued decline in full-time employment, and the national unemployment rate is at its highest point in years. In sectors such as professional, scientific, and technical services, jobs were lost in August, and the “other services” category, which includes personal and repair work, also saw declines.
Though there have been gains in the health-care and social assistance sector, as well as in education, these are not necessarily fields where students—particularly international students—can easily find part-time employment. The mismatch between job availability and student skillsets could leave many struggling to find work, even with the extended hours.
Policy Misstep or Short-Term Fix?
The decision to increase work hours for international students may seem like a quick fix for the pressures of Canada’s cooling economy. However, without broader economic improvements, such as creating more full-time jobs and addressing the rising cost of living, this policy could do more harm than good. It risks exacerbating the challenges students already face, potentially leading to higher dropout rates, increased stress, and limited academic success.
Furthermore, the policy does not address the structural issues within the Canadian job market—issues that are being felt by both students and the general workforce. As the Bank of Canada continues to cut interest rates in response to economic pressures, the question remains whether these measures will truly relieve the strain on the labour market, or simply delay the need for deeper structural reforms.
In the end, while the increase in work hours may offer some students a temporary financial reprieve, it could very well come at the expense of their long-term success, both academically and personally. Instead of empowering students, this policy risks leaving them overworked, underpaid, and academically compromised—while doing little to solve Canada’s broader economic woes.
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