Canada Adjusts Immigration Strategy: Temporary Resident Targets Slashed in Budget 2025

Canada's federal government has announced significant adjustments to its immigration targets for the upcoming years, as outlined in the Budget 2025. The plan, spanning from 2026 to 2028, aims to "stabilize" permanent resident numbers while enacting substantial reductions in temporary immigration.

Key Takeaways

• Permanent resident targets will be held steady at 380,000 annually from 2026 to 2028.

• Temporary resident numbers are set for a sharp decrease, nearly halving by 2026.

• Focus will shift towards attracting high-skilled workers, including researchers and H1-B visa holders.

• Initiatives are planned to help foreign credential recognition, particularly in healthcare.

Permanent Resident Numbers Stabilized

The government's 2026-2028 Immigration Levels Plan, revealed as part of Budget 2025, indicates a stabilization of permanent resident intake. After a planned reduction from 500,000 to 395,000 in 2025, the target for new permanent residents will remain at 380,000 per year for the subsequent three years. This represents a slight increase from earlier projections that anticipated further declines to 365,000 by 2027.

The current levels plan also includes an increase in the proportion of economic migrants, aiming for them to constitute 64 percent of new permanent residents, up from 59 percent.

Dramatic Cuts to Temporary Immigration

The most significant changes are seen in the targets for temporary residents. The government plans a nearly 43 percent reduction, dropping from an expected 673,650 in 2025 to 385,000 in 2026. This number is slated to further decrease to 370,000 in both 2027 and 2028. These adjustments are intended to bring the total number of temporary residents to less than five percent of the Canadian population by the end of 2027.

Focus on High-Skilled Workers and Labour Shortages

In parallel with these reductions, Canada is enhancing its strategy to attract high-skilled talent. An "early measure" involves a one-time initiative to recruit over 1,000 highly qualified international researchers. Recognizing the recent increase in fees for U.S. H-1B visas, Canada will introduce an "accelerated pathway" for H-1B visa holders to immigrate.

Furthermore, the government plans to expedite the transition of up to 33,000 work permit holders to permanent residency in 2026. To address critical labour shortages, particularly in healthcare and construction, Canada will invest $97 million over five years in a Foreign Credential Recognition Action Fund. This fund aims to help newcomers utilize their foreign credentials as healthcare professionals and in other skilled trades.

The government stated that these immigration levels will ensure permanent resident arrivals remain below one percent of the total population.

Sources

• Canada slashes temporary immigration targets in Budget 2025 - National, Global News.