The Canadian economy as a whole has been affected drastically for the next two years. Initially, the Canadian Outlook report published by the Conference Board of Canada forecasted real GDP growth rates of 2.5% and 2.7% for 2020 and 2021. These growth forecasts have been drastically reduced to a dismal 0.7% for 2020 and a smaller 2.3% for 2021 since the implementation of self-isolation measures across the country.
For international students the economic effects of COVID-19 are compounded. The fact that international students already face a relative disadvantage due to language barriers, fewer family and friend networks, and precarity in their legal status, this group of students are particularly at risk of mental health problems from self-isolation measures.
Nevertheless, one of the major issues that affect international students’ wellbeing is financial. Many of these students will apply for a Post-Graduation Work Permit (PGWP) in the hopes of building enough Canadian work experience to either apply for Permanent Residency status or go back to their home countries with a smaller debt burden. Instead, they will face unemployment for at least 8 months before the Canadian economy can recover from this pandemic.
An international student who graduates from a 4-year Bachelor’s degree program receives the maximum of a 3 year work permit. However, most international students graduate from shorter Master’s (18%) and Short-cycle Tertiary programs (41%) of 1-2 years that give them at most a 2 year work permit.
Immigration, Refugees and Citizenship Canada must be willing to make extensions to the work permits for all international students so that they have sufficient time to find a job and make the required 12 months of work experience to become eligible to apply through the Federal Skilled Worker Program or Canadian Experience Class.
International students spend $23,600 - $27,600 per year to attend a Canadian postsecondary institution. Some of these students carry a large debt burden in their home countries where interest rates are usually higher than in Canada. For instance, students from India will pay interest rates of 10% on an education loan. Most will take 10-15 years to pay off their debts. For this reason, working in Canada means they can pay off their debts faster and also gain valuable experience that they can take back to their home countries for higher paying jobs.