The federal government should make it easier for international students to stay in Canada — essentially cutting the red tape and rolling out the red carpet.

That’s one of the key take-aways of a new report released Thursday to help Canada manage the booming international education system, capitalize on international students as potential skilled immigrants and stay competitive globally as a destination of choice for post-secondary education.

“Many international students who want to remain in Canada after graduation still face significant difficulties converting their status from temporary foreign students to permanent residents,” says the report by Century Initiative, a progressive think tank that focuses on growing Canada’s population responsibly to 100 million by 2100.

The 48-page study said hundreds of thousands of students come to study in Canada every year, but only a third can successfully remain here to make a contribution and apply their skills to making the country a better place.

“This is a lost opportunity,” said the report, titled Scaling International Education. “The federal government still erects some important barriers to retention of international students. Poor communication of the rules governing study permits and the pathways for transitioning to permanent residency … including incorrect or confusing guidance, create significant anxiety among international students.”

The report — the result of a roundtable discussion among experts this summer — came after a months-long joint investigation by the Toronto Star and the St. Catharines Standard found the explosive growth in the number of international students in Canada, particularly in Ontario colleges, has left students feeling overwhelmed and teachers frustrated.

There are now more than 572,000 international students in Canada — the largest cohort ever — and a 73 per cent hike since 2014. That unprecedented growth has proven extremely lucrative, with international students pumping $21.6 billion into campuses, communities and the economy nationwide last year. But it has also brought significant challenges.

The Century Initiative study examines how international education can be used to help increase the population and build local economies, particularly for smaller communities across Canada, and over the long term help bridge the growing urban and rural economic and demographic divide.

“Canada is fortunate to be home to dozens of high-quality public universities and colleges in mid-sized and smaller population centres, which could serve as catalysts for increased retention of international students and as portals for their contribution to local economies,” according to the study.

“But it is unclear that these institutions are being leveraged to this end as effectively as they could be. Improving this situation is important as many of these communities could benefit significantly from increased immigration and settlement of young, skilled newcomers.”

Participants of the roundtable identified some key problems and gaps in the management of international education: insufficient co-ordination and consultation among governments, academic institutions and employers; confusing and contradictory information from a myriad of sources regarding immigration pathways open to international students; and the lack of data collected from the real-world experiences of those impacted by government policies.

For example, the report says, a survey conducted in 2017 found only 36 per cent of international graduates were aware of all the pathways to permanent residency that were available to them.

“This poor information environment results in some international students becoming discouraged,” it says. “Overly stringent rules, such as those requiring continuity of studies, result in some students losing eligibility for post-graduation work permits for reasons such as giving birth or suspending their studies due to illness.”

The report acknowledges there have been positive developments over the past 30 years, including the “shift in perceptions of international students from potential ‘over-stayers’ to ‘designer immigrants’ … Nonetheless, this shift remains incomplete.”

The report recommends Ottawa and the provinces create a national roundtable for regular consultation to review policies affecting international students; establish a central immigration information portal for this particular group of newcomers; and improve the way data is collected about their transition and settlement in Canada.

Correction - October 24, 2019: This article was edited from a previous version that mistakenly said the study, Scaling International Education, was authored by Jasmine Gill, Century Initiative’s policy and program director.

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Top 10 host communities of international students in Canada in 2017

Toronto: 168,730

Vancouver: 109,995

Montreal: 59,885

Ottawa-Gatineau: 22,235

Winnipeg: 18,445

Kitchener-Waterloo-Cambridge: 18,365

London: 17,760

Edmonton: 17,550

Hamilton: 14,145

Calgary: 12,495

Source: Scaling International Education, Century Initiative