The Government of Canada has announced a major shift in its immigration policy with the release of the 2025–2027 Immigration Levels Plan, aiming to balance population growth with sustainable development. For the first time, the plan sets controlled targets for both temporary and permanent residents, signaling a more cautious approach to immigration. The goal is to pause rapid population growth temporarily to manage housing, infrastructure, and social services more effectively.
What’s Changing?
The new plan outlines a reduction in permanent resident targets over the next few years:
- 2025: 395,000 permanent residents (down from 500,000)
- 2026: 380,000 permanent residents (down from 500,000)
- 2027: Target of 365,000 permanent residents
The reduction aims to alleviate pressures on housing and other critical services, ensuring newcomers can be better integrated into Canadian society. Canada also plans to reduce the number of temporary residents to 5% of the population by the end of 2026, focusing on high-quality applicants that meet long-term economic needs.
Why the Shift?
The decision comes as Canada faces a surge in population following the pandemic. Immigration accounted for 98% of population growth in 2023, with 60% of that growth attributed to temporary residents. The plan aims to control this rapid expansion, easing pressure on the housing market and improving infrastructure.
Minister of Immigration, Marc Miller, stated that the plan is a response to Canadians’ concerns about housing affordability, job availability, and the integrity of Canada’s immigration system. “We need newcomers, but we also need to ensure they have access to quality jobs, homes, and services,” Miller said.
Key Highlights of the 2025–2027 Plan:
- Temporary Resident Targets: Canada’s temporary population is set to decline by 445,901 in 2025 and 445,662 in 2026, with a slight increase projected in 2027.
- Support for Francophone Communities: Francophone immigration outside Quebec will increase, with targets set at 8.5% in 2025, 9.5% in 2026, and 10% in 2027.
- Economic Class Focus: By 2027, the economic class is expected to make up 61.7% of total permanent resident admissions, focusing on skilled workers in health, construction, and trades.
- Permanent Residency for Temporary Residents: Canada will focus on transitioning temporary residents, such as international students and foreign workers, to permanent residents, making up more than 40% of total admissions in 2025.
Impact on Housing and Economy
Canada’s new approach is expected to have a positive impact on housing affordability. With the reduction in the number of new arrivals, the housing supply gap is projected to shrink by approximately 670,000 units by 2027. This reduction is also expected to boost GDP growth and lower the unemployment rate, ensuring that both new and long-term residents have better access to well-paying jobs and stable housing.
Additional Measures
The plan includes several changes aimed at improving the quality and integrity of Canada’s immigration programs:
- Cap on International Students: To manage student numbers, Canada has implemented stricter controls on international student admissions.
- Tighter Work Permit Rules: The eligibility criteria for temporary foreign workers, post-graduation work permits, and spouse work permits have been revised to ensure that only high-demand skills are brought into the country.
- Support for Economic Growth: By prioritizing skilled immigration, Canada aims to fill labor shortages in key sectors such as health care, construction, and transportation.
Why It Matters
This new immigration strategy is a significant shift from previous years, reflecting the government’s commitment to sustainable growth and a well-managed immigration system. While Canada remains one of the most attractive destinations for immigrants, the revised targets are a signal that the country is seeking a balance between welcoming newcomers and maintaining the quality of life for all Canadians.
Did You Know?
- Canada’s population reached 41 million in April 2024.
- Immigrants account for 23% of all general contractors and residential builders in Canada, playing a vital role in the construction industry.
- The revised immigration targets are expected to support robust GDP growth and accelerate GDP per capita growth through 2027.
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