The Canadian Government has unveiled its 2025–2027 Immigration Levels Plan, signaling a shift towards a more sustainable and balanced approach to immigration. This forward-looking strategy aims to manage population growth while ensuring economic prosperity, better housing availability, and efficient integration of newcomers into Canadian society.
Key Changes in the Immigration Levels Plan
For the first time, Canada’s Immigration Levels Plan extends beyond permanent residents, including targeted numbers for temporary residents such as international students and foreign workers. The plan reflects a commitment to sustainable immigration, with an emphasis on attracting skilled workers while balancing economic and social needs.
Permanent Resident Targets
The new plan brings a decrease in permanent resident admissions over the next few years:
- 2025: 395,000 permanent residents (down from 500,000 in last year’s plan)
- 2026: 380,000 permanent residents
- 2027: 365,000 permanent residents
Despite these reductions, the plan places a strong emphasis on transitioning current temporary residents to permanent status. This strategy aligns with research showing that newcomers with Canadian experience tend to have long-term success, benefiting both the economy and local communities.
Focus Areas of the Permanent Resident Program
- Economic Immigration: By 2027, 62% of total permanent resident admissions will focus on the economic class, including key sectors like health care and trades. The Canadian Experience Class and regional immigration programs will play a significant role in attracting skilled workers already residing in Canada.
- Family Reunification: Family class admissions remain a priority, with 24% of the 2025 permanent resident intake dedicated to reuniting families.
- Support for Francophone Communities: Francophone immigration outside Quebec is set to increase gradually, aiming for 10% of total admissions by 2027, reflecting Canada’s commitment to cultural diversity and economic prosperity in French-speaking regions.
Temporary Resident Targets
The new plan sets targets to reduce temporary residents to 5% of Canada’s population by 2026. This move aligns with a more controlled immigration strategy and will involve:
- A 10% reduction in international student study permits starting in 2025.
- Reforms in the Post-Graduation Work Permit Program (PGWPP) to align with labor market needs.
- Adjustments to the Temporary Foreign Worker Program, including a 10% cap on low-wage stream hiring.
These reforms are designed to transition more temporary residents to permanent status and align the workforce with Canada's long-term economic goals.
Economic Impact and Housing Benefits
The new immigration levels plan is expected to have significant economic and social benefits:
- Economic Growth: The focus on in-Canada applicants will drive GDP growth, contributing to a strong economy throughout 2025 to 2027.
- Housing Affordability: The government expects the plan to help alleviate the housing shortage, reducing the supply gap by around 670,000 units by 2027.
- Job Market Improvement: A more targeted immigration strategy will help address skill shortages, improve job availability, and lower the unemployment rate.
Temporary Resident Adjustments and Reforms
Canada’s immigration strategy includes several measures to refine the temporary residence system:
- Caps on International Students: Limiting student arrivals to better manage resources and housing.
- Stricter Work Permit Rules: Tighter eligibility for work permits, especially for spouses of temporary foreign workers and international students.
- Support for Asylum Seekers: Strengthening the asylum system to address growing global displacement, while maintaining fairness and integrity.
Long-term Vision for Canada’s Immigration
The Immigration Levels Plan is the result of extensive consultations with provinces, territories, and stakeholders, as well as research into the needs of local communities. This data-driven approach ensures that Canada continues to attract talented newcomers who will contribute to the economy without overwhelming housing and social infrastructure.
The Government of Canada remains committed to growing the population responsibly, ensuring that both newcomers and long-term residents can access quality jobs, affordable housing, and vital social services.
Quick Facts:
- 98% of Canada’s population growth in 2023 was driven by immigration, with 60% attributed to temporary residents.
- The plan aims to accelerate GDP per capita growth between 2025 and 2027.
- The focus on economic immigration will fill critical gaps in sectors like health care, construction, and skilled trades.
Why This Matters:
Canada’s new approach to immigration reflects a careful balance between welcoming newcomers and maintaining a sustainable growth trajectory. The plan is set to make Canada more competitive globally by prioritizing skilled immigrants who are already familiar with the country, while easing pressure on housing and public services.
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