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Canada to Reduce Immigration Targets by 20% in 2025

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Canada is set to adjust its immigration goals for both permanent and temporary residents over the next three years, as indicated by a recent government announcement.

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Revised Permanent Resident Targets

The Immigration Levels Plan, released on October 24, outlines Canada’s revised targets for permanent resident admissions:

  • 2025: 395,000 (down from the 2024 target of 485,000 and the previously anticipated 500,000 in the 2024-2026 plan)
  • 2026: 380,000 (previously projected at 500,000)
  • 2027: 365,000

Although the overall immigration targets have decreased, Canada remains focused on economic immigration by preserving a significant portion for skilled workers, with reductions limited to 17% (from 281,000 to 232,000) for 2025. It is anticipated that over 40% of these economic immigrants will be individuals transitioning from temporary resident status within Canada.

The updated permanent resident targets by immigration category are:

Immigration Category202520262027
Total PR Admissions395,000 (Range: 367,000 – 436,000)380,000 (Range: 352,000 – 416,000)365,000 (Range: 338,000 – 401,000)
French-speaking admissions outside Quebec8.5% (29,325)9.5% (31,350)10% (31,500)
Economic Immigration232,150 (Range: 215,000 – 256,000)229,750 (Range: 214,000 – 249,000)225,350 (Range: 207,000 – 246,000)
Family Reunification94,500 (Range: 88,500 – 102,000)88,000 (Range: 82,000 – 96,000)81,000 (Range: 77,000 – 89,000)
Refugees, Protected Persons, and Humanitarian Programs68,350 (Range: 63,500 – 78,000)62,250 (Range: 56,000 – 71,000)58,650 (Range: 54,000 – 66,000)

Prime Minister Justin Trudeau, unusually, led this announcement, underscoring Canada’s commitment to a robust immigration strategy that supports the economy.

Changes to Provincial Nominee Programs (PNP)

A major policy shift includes significant cuts to the Provincial Nominee Programs (PNP):

  • 2025: 55,000 (down from 110,000 targeted in 2024 and 120,000 in last year’s plan)
  • 2026: 55,000 (down from 120,000 in previous projections)
  • 2027: 55,000

Federal High Skilled Economic Immigration Increase

In contrast to PNP cuts, targets for federal high-skilled (FHS) programs, managed through Express Entry, have been increased:

  • 2025: 124,680 (up from 110,770 targeted in 2024 and 117,500 for 2025)
  • 2026: 123,230 (up from 117,500 for 2026)
  • 2027: 118,730

These FHS figures include federal economic priorities and in-Canada focus categories, while Federal Business is excluded.

Encouraging French-Speaking Immigrants Outside Quebec

Canada remains committed to increasing the percentage of French-speaking immigrants settling outside Quebec:

  • 2025: 8.5%
  • 2026: 9.5%
  • 2027: 10%

Temporary Resident Levels

The current plan, for the first time, introduces specific targets for temporary resident admissions. Canada plans to reduce temporary residents as a percentage of the population from 7% to 5% by the end of 2026:

Temporary Resident Category202520262027
Total TR Arrivals673,650 (Range: 604,900 – 742,400)516,600 (Range: 435,250 – 597,950)543,600 (Range: 472,900 – 614,250)
Workers367,750210,700237,700
Students305,900305,900305,900

The sharp decline in worker admissions from 2025 to 2026 aligns with a reduction in work permits for the International Mobility Program (IMP), with targets falling from 285,750 in 2025 to 128,700 in 2026. Work permits under the Temporary Foreign Worker Program (TFWP) will remain steady at 82,000 annually.

Other Recent Changes in Immigration Programs

  1. Cap on Study Permits: Beginning January 2024, the IRCC introduced a cap on international student admissions, with a limit of 360,000 new study permits.
  2. Adjustments to PGWPs: Eligibility criteria for Post-Graduation Work Permits (PGWPs) were also updated this year, with students in programs requiring licensing agreements no longer qualifying for PGWPs as of September 2024.
  3. TFWP Reforms: The TFWP has faced scrutiny due to concerns over labor exploitation. In response, the government suspended low-wage LMIA processing in areas with unemployment rates of 6% or higher and reduced permit durations to one year for low-wage positions.
  4. Further Changes: On September 18, Minister Miller announced additional reforms expected to result in fewer study permits (300,000), PGWPs (175,000), and spousal open work permits (150,000) over the next three years. Changes include:
    • Restricting PGWP eligibility to in-demand jobs.
    • Requiring language tests for PGWPs and aligning master’s program lengths to 18 months for spousal eligibility.

Overview of the Immigration Levels Plan

The Immigration Levels Plan is the government’s primary document for outlining immigration goals, typically including targets for the coming year and provisional targets for the following two years. While this year’s plan reflects a reduction in overall admissions, it maintains ambitious targets compared to pre-pandemic levels.

Rationale for the Changes

Minister Miller described the plan as a “balanced approach,” while Trudeau acknowledged the adjustments as partly politically motivated, with a view to the next election.

This new immigration direction showcases Canada’s commitment to a measured approach that aims to balance economic growth with sustainable population management.

Announcement Video:

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