Canada has announced a major shift in its immigration policies, with plans to significantly reduce its targets for permanent and temporary residents in the coming years. These changes represent a stark contrast to the country’s previously ambitious immigration goals, aiming to scale back both permanent and temporary admissions. In this post, we provide an overview of the new immigration targets, the reasons behind these decisions, and the broader impact on Canada’s immigration landscape.
New Immigration Targets for 2025-2027
The newly announced Immigration Levels Plan outlines a steady reduction in the number of immigrants Canada plans to admit over the next few years. The targets mark a departure from the previously announced figures in the 2024-2026 Levels Plan.
- 2025: 395,000 permanent residents (previously 485,000)
- 2026: 380,000 permanent residents (previously 500,000)
- 2027: 365,000 permanent residents (previously 500,000)
While the reductions in permanent resident admissions are significant, they primarily affect economic immigration. Nevertheless, economic immigration remains a key priority, with only a 15% decrease in the 2025 target—from 272,000 to 232,000 economic immigrants. Despite this reduction, Canada continues to rely on the economic benefits brought by skilled immigrants.
Economic Immigration Targets
One notable aspect of the plan is that only 40% of economic immigrants are expected to come from within Canada, reflecting a shift in focus toward international applicants. The plan emphasizes the government’s efforts to streamline pathways for skilled foreign workers, ensuring that the economic needs of the country are met even with reduced immigration levels.
Prime Minister’s Involvement
In a rare move, Prime Minister Justin Trudeau led the announcement, a task typically handled by the Immigration Minister. Trudeau praised Canadian immigration for fueling the economy, stating that it has “made our economy the envy of the world.” His involvement underscores the importance of these changes and the government’s commitment to refining the immigration process.
Changes in Temporary Resident Targets
Unlike previous Immigration Levels Plans, this year’s update includes specific targets for temporary residents, an area of growing focus in Canada’s immigration policy. The goal is to reduce the number of temporary residents relative to the overall population, from 6.5% as of March 2023 to 5% by the end of 2026.
Temporary residents include those on work permits and study permits, who have contributed to the surge in Canada’s temporary population in recent years. As part of its strategy to manage this influx, the government is capping international student admissions and reforming key programs for foreign workers.
2024 Cap on Study Permit Applications
One of the most impactful changes introduced in this plan is the cap on study permit applications. Announced on January 22, 2024, this cap is aimed at controlling the rapid growth of foreign nationals on study permits, particularly undergraduate and college students.
Permanent Cap on Study Permits
Initially planned as a temporary two-year measure, the cap has now been made permanent. Starting in 2024, the government will limit study permits to 360,000 per year. This cap applies not only to undergraduate and college students but also to those pursuing master’s and PhD programs. By controlling the number of study permits issued, the government aims to reduce pressure on housing and labor markets, which have been strained by the influx of foreign students.
Post-Graduation Work Permit (PGWP) Eligibility Adjustments
Further adjustments have been made to the eligibility criteria for the Post-Graduation Work Permit (PGWP), which allows international students to gain work experience in Canada after completing their studies. In 2024, the Immigration, Refugees and Citizenship Canada (IRCC) announced that students enrolled in programs with curriculum-licensing agreements would no longer be eligible for a PGWP. This change, effective September 2024, is part of the broader effort to limit temporary resident numbers.
Reforms to the Temporary Foreign Worker Program (TFWP)
Canada’s Temporary Foreign Worker Program (TFWP), which allows employers to hire foreign workers to fill labor shortages, has also come under scrutiny. In his announcement, Prime Minister Trudeau criticized businesses for exploiting cheap foreign labor and emphasized the need for reform. The government has already taken action by suspending Labour Market Impact Assessments (LMIAs) for the low-wage stream of the TFWP in regions with high unemployment, including Montreal and other areas with unemployment rates above 6%.
Impact of LMIA Suspension
The suspension of LMIA processing in these regions is expected to reduce the number of low-wage temporary foreign workers entering Canada, aligning with the government’s goal of reducing temporary residents. The reforms also aim to encourage businesses to prioritize hiring domestic workers, particularly in regions with higher unemployment rates.
Broader Implications for Temporary Immigration
As part of its overarching plan to manage Canada’s population growth, the government has introduced sweeping reforms to several immigration programs. The September 2024 announcement by Immigration Minister Marc Miller is expected to result in the following by the end of 2026:
- 300,000 fewer study permits
- 175,000 fewer PGWPs
- 150,000 fewer spousal open work permits
These reductions reflect the government’s effort to balance population growth with the country’s capacity to provide adequate housing and job opportunities for both immigrants and Canadian citizens.
Rationale Behind the Changes
Immigration Minister Marc Miller has described the changes as a “middle-of-the-road” approach, striking a balance between population growth and Canada’s economic and social infrastructure. By reducing both permanent and temporary resident admissions, the government aims to achieve a controlled immigration plan that addresses labor shortages while minimizing the impact on housing availability and other essential services.
Conclusion: What These Changes Mean for Prospective Immigrants
The new immigration targets and reforms to temporary programs reflect Canada’s evolving approach to managing its immigration system. While these changes may create challenges for prospective immigrants, particularly students and temporary foreign workers, Canada remains committed to welcoming newcomers who can contribute to its economy and society.
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