(CANADA) Canada will not admit over half a million new permanent residents in 2025. Instead, the federal target is set at 395,000 permanent residents for the year, a marked step down from both the earlier plan and the record-setting admissions of recent years. The figure, announced in the 2025–2027 Immigration Levels Plan released in October 2024, signals a major shift in how Canada 🇨🇦 is managing immigration levels, with the government citing housing pressure, infrastructure strain, and the need for steadier growth as reasons for slowing intake.
IRCC has paired the lower permanent resident target with the country’s first-ever population-based controls on temporary residents. The plan sets a national goal to reduce temporary residents to 5% of the population by the end of 2026. For 2025, Immigration, Refugees and Citizenship Canada (IRCC) targets 673,650 new temporary resident arrivals (covering work and study permits), with further reductions planned across 2026 and 2027.
Early data suggests the shift is already biting: Canada recorded a drop of more than 61,000 non-permanent residents in the first quarter of 2025, the largest quarterly decrease since the pandemic.
Why the shift now
IRCC’s approach aims to cool population growth after a historic run between 2021 and 2024, when immigration levels topped 400,000 permanent residents per year and international students and workers boosted the temporary population.
Officials say the priority is to match arrivals with the country’s capacity to:
- house people
- build transit
- deliver services
The government frames the changes as well-managed, sustainable growth, not a closure of pathways.
Targets and the stabilization period
The new plan pegs permanent resident targets at:
- 395,000 (2025)
- 380,000 (2026)
- 365,000 (2027)
These levels are well below the government’s earlier promise to reach 500,000 by 2025. According to analysis by VisaVerge.com, the move positions 2025–2027 as a stabilization period, with permanent resident admissions expected to remain below 1% of the population beyond 2027.
The early numbers line up with the slowdown. In the first quarter of 2025, Canada admitted 104,256 new permanent residents — the lowest first-quarter total since 2021, though still high by historical standards. If that pace holds, total admissions could even fall short of the annual target.
Important: Officials emphasize this is a pacing decision meant to align arrivals with available housing and infrastructure — not a shutout.
Measures affecting temporary and study permits
IRCC’s slowdown is broad and coordinated, touching study permits, work permits, and provincial nomination pathways.
Key measures:
- Temporary residents: Aim to reduce the temporary population to 5% by end-2026. 2025 intake target: 673,650.
- Study permits: IRCC will process up to 550,162 applications in 2025 and aims to issue no more than 437,000 study permits (about a 10% drop from 2024).
- Express Entry & draws: IRCC continued multiple mid-2025 draws, including targeted rounds for the Canadian Experience Class, the PNP, French-language proficiency, healthcare, and education.
The effects on education and employers are immediate: provinces and schools must adjust quickly, many programs are harder to access, and employers may face stricter rules for some temporary work streams.
Provincial Nominee Program (PNP) changes
Provinces, which share responsibility for selecting newcomers, face sharp cuts and new conditions.
Highlights:
- PNP allocations halved for 2025 (a 50% reduction).
- Provinces must allocate 75% of PNP nominations to candidates already in Canada (favoring workers and students with Canadian experience).
- Several provinces have pushed back, seeking more nomination spaces or suspending certain streams while they renegotiate.
These changes shift selection toward in-Canada candidates and toward immediate local labor needs.
New and ongoing pathways
Despite lower overall levels, IRCC has kept several pathways active and promised new or improved routes:
- Multiple mid-2025 Express Entry draws continued, including category-based selections.
- The Economic Mobility Pathways Pilot will become a permanent program by the end of 2025.
- Sector-focused work permit streams are planned for agriculture and fish processing.
IRCC stresses pace, not closure: many permanent resident spots in 2025 are expected to go to people already in Canada.
Who is prioritized
- More than 40% of permanent resident spots in 2025 are expected to go to people already in Canada on a study or work permit.
- This tilt favors applicants with Canadian degrees, Canadian work history, and local ties.
- For applicants abroad, competition is tougher and wait times may grow unless they match in-demand occupations or French-language priorities.
Impact and concerns
The slowdown has real costs and trade-offs:
- Provinces and business groups warn the cuts could worsen labor shortages in healthcare, construction, and food processing.
- Colleges and private education providers say fewer international students will squeeze budgets and programs.
- Employers reliant on seasonal or lower-wage labor warn stricter limits will be hard to absorb.
Politically, housing pressure has been a major driver. Several provinces saw population drops in Q1 2025 — Ontario, British Columbia, Quebec, Newfoundland and Labrador, and Yukon among them — reflecting both lower intake and internal shifts.
Practical advice for applicants in 2025
If you are planning migration steps in 2025, consider the following:
- If you’re in Canada:
- Keep your status valid and document your work or study experience.
- You may be prioritized for permanent residence.
- If you’re following provincial routes:
- Watch provincial PNP updates closely — many provinces are changing nomination criteria and intake schedules.
- Expect more Expression of Interest systems focused on healthcare, skilled trades, and construction.
- If you’re outside Canada:
- Focus on in-demand occupations and language skills, especially French.
- Be prepared for tougher competition for provincial and federal invitations.
- If you are an international student:
- Confirm your school’s intake and any provincial letters or attestation requirements before paying fees or making travel plans.
All official program details and updates, including the latest Immigration Levels Plan, are available on IRCC’s website: https://www.canada.ca/en/immigration-refugees-citizenship/. Applicants should rely on IRCC for final rules and timelines.
Summary and outlook
- The system is pivoting toward slower, steadier intake with permanent resident targets declining to 365,000 by 2027.
- First-quarter 2025 data (104,256 new permanent residents and a sharp fall in non-permanent residents) suggests the policy is having an effect.
- Whether the changes relieve housing pressure or worsen sectoral labor shortages remains uncertain.
- The bottom line for would-be newcomers: fewer spots, more selectivity, and clearer advantage for those with Canadian work or study experience. For provinces and employers, targeted recruitment and careful planning are now more important than ever.
This Article in a Nutshell
Canada’s 2025 immigration plan cuts permanent resident targets to 395,000 and restricts temporary residents, aiming for 5% share by end-2026. Early 2025 numbers show declines in non-permanent residents and lower PR admissions, prioritizing candidates already in Canada and prompting concerns about labour shortages and impacts on education.
