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Canada’s 2025-2027 Immigration Levels Plan

By: Mariam Baher

In March 2024, Canada introduced its Immigration Levels Plan for 2025-2027. This marks the first time the government has set targets for both permanent and temporary residents. The new approach addresses ongoing labour shortages, housing and healthcare pressures, and fraud in temporary immigration programs. The Canadian government’s goal is to improve the immigration landscape by reducing the number of temporary residents to 5% of Canada’s total population by 2026, with a slight increase in 2027.

Temporary and Permanent Resident Targets

The number of temporary residents (TRs), including workers and students, is set to decrease from 673,650 in 2025 to 543,600 by 2027. International students will represent a large portion of these temporary residents, making up 45% of the total in 2025 and rising to 56-59% by 2027. The number of temporary foreign workers (TFWs) will also remain significant but will decline by 2027 due to strict regulations and a 63% reduction in the International Mobility Program (IMP) from 2023 levels.

The target for permanent resident admissions in 2025 is 395,000, which will decrease by 30,000 to 365,000 by 2027. The focus for permanent resident targets will continue to be on economic immigrants, skilled workers, caregivers, and individuals working in healthcare and skilled trades. Family reunification will account for approximately 22% of permanent admissions, with 58,350 refugees expected in 2025. As defined on the Government of Canada website, family reunification applies to individuals who may become permanent residents through sponsorship by a family member, allowing them to live, study, and work in Canada.

Increased Focus on French-Speaking Immigrants and Key Sectors

The 2025-2027 plan aims to increase the number of French-speaking immigrants outside of Quebec, increasing from 8.5% in 2025 to 10% by 2027. In addition to targeting French-speaking immigrants, Canada is also prioritizing certain immigrants to fill labour gaps in specific fields, particularly healthcare and skilled trades, to support economic growth in these sectors.

Temporary Resident Reduction

The 2025-2027 levels plan emphasizes a significant reduction in the role of temporary residents. The Canadian government intends to decrease temporary residents to 5% of the total population by 2026 by implementing stricter restrictions on study and work permits. The number of international students will decrease, dropping to 305,900 in 2025, compared to an influx of 682,889 international students in 2023. This reduction will also apply to Post-Graduation Work Permits (PGWPs) and other temporary immigration programs.

Temporary Foreign Workers (TFWs)

The number of temporary foreign workers is expected to drop to 82,000 per year between 2025 and 2027, this is a significant decrease from over 184,000 TFWs issued in 2023. Industries that rely heavily on temporary workers, such as agriculture and hospitality, will be the most affected. To ensure the effectiveness of this plan, the government has introduced stricter Labor Market Impact Assessment (LMIA) rules, including caps on low-wage workers and higher wage thresholds for high-wage positions. These changes will, in turn, have an impact on employers and their hiring processes.

Canada is working to create an immigration system that benefits not only newcomers and citizens, but the economy as well. As Canada’s immigration landscape evolves, there is still plenty of room and opportunities for students, workers, and prospective permanent residents. In light of all these changes, if you have any questions regarding what immigration program you would be eligible for, please contact us and we will be able to guide you through the process.