Canada plans to reduce immigration levels by 20% in 2025.
Canada is lowering its targets for admitting permanent and temporary residents.
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Permanent Resident Admission Targets
In the Immigration Levels Plan released on October 24, the Canadian government announced significant reductions in permanent resident admission targets for the next three years, while shifting focus toward economic immigration.
Revised Targets:
- 2025: 395,000 (down from the previous target of 485,000 and the earlier goal of 500,000 set in the 2024–2026 plan).
- 2026: 380,000 (reduced from 500,000 in the 2024–2026 plan).
- 2027: 365,000.
While overall immigration numbers are decreasing, the proportion dedicated to economic immigration is increasing, reflecting a strategic adjustment to address workforce needs.
Economic Immigration Highlights:
- Targets for economic immigrants in 2025 have been reduced by 17%, from 281,000 to 232,000.
- Over 40% of economic immigrants are anticipated to come from temporary residents already residing in Canada, streamlining pathways for skilled workers and students.
Breakdown of Permanent Resident Admissions (2025–2027):
The government has outlined a detailed framework for permanent resident admissions, emphasizing economic contributions while managing overall immigration levels.
This revised approach balances economic growth with manageable population integration, focusing on leveraging the talent already within Canada’s borders.
Breakdown of Permanent Resident Admission Targets (2025–2027)
The Canadian government has provided detailed targets for permanent resident admissions across key immigration categories for the next three years:
Total Permanent Resident (PR) Admissions
- 2025: 395,000 (range: 367,000–436,000)
- 2026: 380,000 (range: 352,000–416,000)
- 2027: 365,000 (range: 338,000–401,000)
French-Speaking Admissions Outside Quebec
- 2025: 8.5% (29,325 individuals)
- 2026: 9.5% (31,350 individuals)
- 2027: 10% (31,500 individuals)
Economic Immigration
- 2025: 232,150 (range: 215,000–256,000)
- 2026: 229,750 (range: 214,000–249,000)
- 2027: 225,350 (range: 207,000–246,000)
Family Reunification
- 2025: 94,500 (range: 88,500–102,000)
- 2026: 88,000 (range: 82,000–96,000)
- 2027: 81,000 (range: 77,000–89,000)
Refugees, Protected Persons, Humanitarian, and Compassionate Admissions
- 2025: 68,350 (range: 63,500–78,000)
- 2026: 62,250 (range: 56,000–71,000)
- 2027: 58,650 (range: 54,000–66,000)
Key Insights:
- Economic immigration remains the largest focus, comprising over half of total PR admissions.
- The share of French-speaking immigrants outside Quebec is steadily increasing, aiming to reach 10% by 2027.
- Categories like Family Reunification and Refugees/Protected Persons see consistent declines in targets over the three years.
This approach reflects Canada’s priorities of addressing economic needs while managing overall immigration numbers.
In an unexpected move, Prime Minister Justin Trudeau personally led the announcement, a role traditionally handled by the Immigration Minister.
Trudeau praised Canada’s immigration system, stating, “It’s made our economy the envy of the world.”
In an unexpected move, Prime Minister Justin Trudeau personally led the announcement, a role traditionally handled by the Immigration Minister.
Trudeau praised Canada’s immigration system, stating, “It’s made our economy the envy of the world.”
Key Changes in Canada’s Immigration Levels Plan (2025–2027)
Scaling Back Provincial Nominee Program (PNP) Targets
The Provincial Nominee Program (PNP) admissions targets have been cut by about 50% for the next three years:
- 2025: 55,000 (down from 110,000 in 2024)
- 2026: 55,000 (down from 120,000 in the previous plan)
- 2027: 55,000
This significant reduction in PNP targets marks a major shift in Canada’s immigration policy, with a greater focus on federal immigration programs.
Increase in Federal High-Skilled Economic Immigration
While PNP targets are reduced, Federal High-Skilled (FHS) immigration has seen an increase, with a larger portion of economic immigration being directed toward these programs, primarily managed through Express Entry.
- 2025: 124,680 (up from 110,770 in 2024)
- 2026: 123,230 (up from 117,500 in 2025)
- 2027: 118,730
This shift indicates the federal government’s emphasis on attracting skilled workers to meet the country’s labor market needs.
Increasing French-Speaking Immigration Outside Quebec
Canada’s commitment to increasing French-speaking immigrants outside of Quebec remains a key focus, with targets steadily rising:
- 2025: 8.5%
- 2026: 9.5%
- 2027: 10%
This policy aims to strengthen the presence of French-speaking Canadians across the country, outside of Quebec.
Temporary Resident Levels
For the first time, targets for temporary resident admissions have been included in the Immigration Levels Plan, reflecting the government’s aim to control temporary foreign worker numbers and their overall impact on Canada’s population. Temporary resident levels will be reduced as a proportion of Canada’s total population, from 7% to 5% by 2026.
The breakdown for temporary resident admissions is as follows:
- 2025: 673,650 (range: 604,900–742,400)
- 2026: 516,600 (range: 435,250–597,950)
- 2027: 543,600 (range: 472,900–614,250)
Work Permit Reductions
A large reduction in work permits, particularly through the International Mobility Program (IMP), is expected, with targets dropping significantly from 285,750 in 2025 to 128,700 in 2026. However, work permits under the Temporary Foreign Worker Program (TFWP) will remain stable at 82,000 per year.
Cap on Study Permits
The cap on international student admissions introduced in January 2024 will limit undergraduate and college admissions to 360,000 new study permits for 2024. This policy has been extended beyond a temporary measure and will now apply to master’s and PhD students as well, with restrictions on Post-Graduation Work Permits (PGWPs).
Reforms to Temporary Foreign Worker Program (TFWP)
Prime Minister Justin Trudeau has called out businesses for exploiting foreign labor and announced reforms aimed at limiting the exploitation of low-wage workers. Key measures include:
- Suspension of labor market impact assessments (LMIAs) for the low-wage stream in regions with high unemployment rates.
- Limiting TFWP work permits to one year for low-wage workers (previously two years).
Other Immigration Policy Changes
- Reduction in PGWPs and spousal open work permits: The government plans to issue 300,000 fewer study permits, 175,000 fewer PGWPs, and 150,000 fewer spousal open work permits over the next three years.
- Eligibility changes for PGWPs, including language requirements and restrictions based on program length.
- Transition of temporary residents to permanent residents: The government expects to manage the decline in temporary residents through pathways such as the Canadian Experience Class (CEC) and provincial nominee programs (PNPs).
Rationale for the Changes
- Minister Sean Fraser described these changes as a “middle-of-the-road” approach, emphasizing a controlled immigration system that is manageable and beneficial for Canada.
- Prime Minister Trudeau suggested that some of these changes may be politically motivated, focusing on “winning the next election” by addressing public concerns about immigration levels.
Conclusion
While the Canadian government is scaling back some aspects of its immigration system, the increase in high-skilled economic immigration and the reduction in temporary residents reflect an evolving approach to immigration. The government is balancing the need for skilled workers with concerns about housing and labor market pressures, while also responding to political and social factors shaping the public perception of immigration.
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