As we move into the spring of 2026, the Saint John business landscape continues to navigate a complex economic environment. With recent shifts in interest rates aiming to stabilize the national economy, local businesses are gearing up for the busy summer season. However, a pressing issue has emerged that threatens the region’s workforce and economic vitality: the severe and disproportionate impact of the federal International Student Program (ISP) reforms.

The Unintended Consequences of ISP Reforms

According to a recent joint letter from Atlantic Canadian Chambers of Commerce, including The Chamber Saint John Region, the Auditor General’s 2026 report highlights a drastic drop in international student approvals. While the federal government aimed for a modest reduction of 10% or less, Atlantic Canada saw study permit approvals plummet by over 59% in 2024. In New Brunswick alone, the drop was a staggering 64%, with 2025 figures continuing to fall well below forecasts.

Flaws in the Federal Allocation Model

The Chambers point to structural flaws in the federal allocation model as the root cause of this crisis. The report identifies two major issues:

• Population-Based Allocations: Distributing permits based primarily on population ignores the acute demographic challenges and labour shortages specific to smaller provinces like New Brunswick.
• Inaccurate Approval Rate Assumptions: The federal government used a standardized 60% approval rate assumption. Because Atlantic Canada historically has lower approval rates, this assumption compounded the disadvantage, resulting in fewer allocation spaces and lower conversion rates. In reality, approval rates in the region dropped sharply from 58% in 2023 to just 38% in 2025.

Impact on Saint John’s Economy

International students are a vital component of Saint John’s population growth, workforce development, and overall economic sustainability. The sudden reduction in student approvals is already exacerbating labour shortages across key sectors. Furthermore, it places immense financial strain on local post-secondary institutions and threatens to weaken community vitality. Business leaders warn that this could cause long-term reputational damage to Canada as a welcoming destination for global talent.

The Chamber’s Call to Action

To protect the economic future of Atlantic Canada, local business leaders are urgently calling on the federal government to take corrective action. Their demands include:

• Revising the allocation model to reflect regional economic needs and labour market demands rather than just population size.
• Adjusting approval rate assumptions to match actual regional performance.
• Implementing robust, real-time monitoring and transparency mechanisms.
• Fully resourcing integrity and compliance systems to maintain program credibility without restricting access.

Frequently Asked Questions

Why are international students important to Saint John?

International students contribute significantly to the local economy by filling critical labour shortages, supporting post-secondary institutions financially, and driving population growth in the region.

How much did study permit approvals drop in New Brunswick?

Study permit approvals in New Brunswick dropped by approximately 64% in 2024, far exceeding the federal government’s anticipated reduction of 10%.

What is the main flaw in the current ISP allocation model?

The current model allocates permits based primarily on population size and assumes a standardized 60% approval rate, which fails to account for Atlantic Canada’s unique demographic challenges and historically lower approval rates.