Key Takeaways
• Canada’s 2025–2027 plan lowers permanent resident targets from 500,000 to 365,000 by 2027.
• For the first time, Canada sets caps reducing temporary residents like international students by one-third.
• A slim majority of Canadians still think immigration levels remain too high despite government reductions.
A slim majority of Canadians believe that even after recent reductions, immigration levels in Canada remain too high. This view, revealed by new government polling, comes at a time of major policy changes and ongoing debate about the country’s approach to immigration. As of mid-2025, the Liberal Party, led by Prime Minister Mark Carney, has formed a minority government and is moving forward with a more cautious immigration plan. The new approach includes lower permanent resident targets and, for the first time, clear limits on temporary residents such as international students and temporary foreign workers.
This article provides a detailed look at the latest developments, policy changes, and the views of key stakeholders. It also explains what these changes mean for immigrants, employers, students, and the wider public.
Recent Developments: A Shift in Canada’s Immigration Approach
After the federal election on April 28, 2025, the Liberal Party under Prime Minister Mark Carney reaffirmed that immigration remains a top priority. However, the government’s new plan marks a significant shift from previous years. The 2025–2027 Immigration Levels Plan sets out lower targets for permanent resident admissions and, for the first time, introduces specific caps on temporary residents.
Key changes include:
- Permanent resident targets: 395,000 in 2025, 380,000 in 2026, and 365,000 in 2027.
- Temporary resident caps: Aiming to reduce the number of international students and temporary foreign workers by about one-third over three years.
- Focus on skilled workers: The economic immigration category will make up nearly 62% of total admissions by 2027, with a focus on sectors like healthcare and skilled trades.
Despite these reductions, government polling shows that a slim majority of Canadians still think immigration levels are too high. This highlights ongoing public concern about the number of newcomers, even as the government takes steps to lower the numbers.
Understanding the New Immigration Levels Plan
The 2025–2027 Immigration Levels Plan, released on October 24, 2024, is a response to both economic needs and public opinion. The plan’s main features are:
- Lower permanent resident admissions: The new targets are much lower than the previous goal of 500,000 new permanent residents each year.
- Caps on temporary residents: For the first time, there are clear limits on the number of international students and temporary foreign workers allowed into Canada 🇨🇦.
- Pathways for those already in Canada: Over 40% of new permanent residents in 2025 will be people who are already in the country as students or workers.
- Economic focus: By 2027, almost two-thirds of new permanent residents will be admitted through economic programs, especially those with skills needed in key sectors.
These changes are designed to balance the country’s need for skilled workers with concerns about housing, social services, and public opinion.
Why Are Immigration Levels Being Reduced?
Canada 🇨🇦 has long relied on immigration to support its economy and address an aging population. In recent years, the government set ambitious targets, aiming for 500,000 new permanent residents each year. However, several factors have led to a change in direction:
- Public concern: Government polling shows that a slim majority of Canadians believe immigration levels are still too high, even after recent cuts.
- Housing and social services: Many people worry that high immigration numbers put pressure on housing, healthcare, and other services.
- Labor market needs: While some sectors face labor shortages, others are struggling to keep up with the pace of new arrivals.
The new plan tries to address these concerns by lowering targets and focusing on skilled workers who can fill critical gaps in the workforce.
How the New Plan Works: Step-by-Step
The process for setting and managing immigration levels in Canada 🇨🇦 involves several steps:
- Setting targets: Each year, Immigration, Refugees and Citizenship Canada (IRCC) sets targets for permanent and temporary admissions based on government policy and labor market needs.
- Application streams: People can apply for permanent residence through different streams, including economic programs (for skilled workers), family reunification, and refugee or humanitarian programs.
- Express Entry system: This system ranks candidates for economic immigration. Those with Canadian work experience, especially in key sectors, are given priority.
- Temporary resident caps: New limits mean that fewer international students and temporary foreign workers will be admitted each year.
- Transition pathways: The government is putting more emphasis on helping temporary residents (students and workers) become permanent residents, especially those already contributing to the economy.
For more details on the Express Entry system and how to apply, visit the official IRCC Express Entry page.
Who Is Affected by These Changes?
The new immigration levels and policies have wide-reaching effects on different groups:
1. Immigrants and Applicants
– Permanent residents: Fewer spots mean more competition and higher requirements for those hoping to move to Canada 🇨🇦.
– Temporary residents: International students and temporary foreign workers face stricter admission criteria and lower chances of being accepted.
– Pathways to permanent residence: Those already in Canada 🇨🇦 as students or workers may have a better chance of becoming permanent residents, as the government is prioritizing these groups.
2. Employers and Industry
– Labor shortages: Employers in sectors like healthcare and skilled trades may still struggle to find enough workers, even with the focus on skilled immigration.
– Temporary labor: Industries that rely on temporary foreign workers, such as agriculture and hospitality, could face staff shortages due to the new caps.
3. Educational Institutions
– International students: Universities and colleges may see fewer international students, which could impact their finances and campus diversity.
– Revenue concerns: Many schools rely on higher tuition fees from international students to fund programs and services.
4. The General Public
– Public services: Lower immigration levels may ease pressure on housing, healthcare, and other services.
– Public opinion: The slim majority favoring even lower immigration levels suggests that the issue remains sensitive and could influence future policy decisions.
Stakeholder Perspectives: A Closer Look
Government: The Liberal Party, under Prime Minister Mark Carney, is trying to balance economic needs with public concerns. The new plan is more conservative than previous ones but still keeps immigration as a key part of Canada’s future.
Employers and Industry Groups: Many business leaders worry that lower immigration levels will make it harder to find skilled workers. They argue that Canada 🇨🇦 needs newcomers to fill jobs and keep the economy growing.
Immigrant Advocacy Groups: These groups are concerned that cuts to immigration will hurt family reunification and make it harder for refugees to find safety in Canada 🇨🇦.
General Public: According to government polling, a slim majority of Canadians still think immigration levels are too high, even after recent reductions. This shows that the issue is complex and opinions are divided.
Educational Institutions: Universities and colleges are worried about the impact of caps on international students, both for their finances and for the diversity of their campuses.
Historical Context: How Did We Get Here?
In the past, Canada 🇨🇦 set high immigration targets to support economic growth and address an aging population. The government’s goal was to bring in 500,000 new permanent residents each year. However, rising concerns about housing, social integration, and the ability of communities to absorb newcomers led to calls for lower targets.
The 2025–2027 plan is the first to include clear caps on temporary residents, marking a shift toward more controlled immigration. The April 2025 federal election confirmed the Liberal Party’s commitment to immigration but with a more cautious approach.
Expert Analysis: Balancing Needs and Concerns
Experts say the government’s new plan is an attempt to balance the country’s economic needs with public concerns about immigration levels. The focus on skilled workers in critical sectors is meant to help fill labor shortages, while the lower overall targets respond to worries about housing and social services.
However, some analysts warn that cutting immigration too much could make it harder for businesses to find workers, especially in healthcare and skilled trades. Others point out that public opinion remains divided, and future policy changes may be needed if concerns continue.
As reported by VisaVerge.com, the introduction of caps on temporary residents is a major change and could have lasting effects on Canada’s immigration system and economy.
Looking Ahead: What’s Next for Canada’s Immigration Levels?
The current plan calls for gradual reductions in immigration levels through 2027. However, several factors could influence future changes:
- Public opinion: If more Canadians continue to favor lower immigration levels, the government may face pressure to cut targets even further.
- Labor market needs: If shortages in key sectors worsen, there could be calls to increase skilled immigration.
- Pathways for temporary residents: The government may refine programs to help more students and workers already in Canada 🇨🇦 become permanent residents.
- Economic conditions: Changes in the economy, such as a recession or strong growth, could also affect immigration policy.
Stakeholders expect ongoing debates about how to balance economic needs with social and political concerns. The government will likely continue to monitor labor shortages, public opinion, and the success of new policies as it plans for the future.
Practical Guidance for Prospective Immigrants
If you are considering moving to Canada 🇨🇦, here are some practical steps and tips:
- Check the latest targets: Admission numbers and requirements may change each year. Visit the official IRCC website for the most up-to-date information.
- Focus on in-demand skills: The government is prioritizing skilled workers in sectors like healthcare and trades. Having Canadian work experience or education can improve your chances.
- Understand the new caps: If you are applying as an international student or temporary worker, be aware of the new limits and stricter criteria.
- Explore transition pathways: If you are already in Canada 🇨🇦 as a student or worker, look into programs that help you move from temporary to permanent status.
- Stay informed: Immigration policies can change quickly. Follow updates from IRCC and trusted news sources.
Conclusion: A Changing Landscape
Canada’s approach to immigration is changing in response to public opinion, economic needs, and political realities. The new plan lowers immigration levels and introduces caps on temporary residents, reflecting a more cautious approach. While the government aims to balance the needs of the economy with concerns about housing and services, the issue remains sensitive for many Canadians.
For immigrants, employers, students, and the wider public, these changes mean new challenges and opportunities. Staying informed and understanding the latest policies is key to making the most of Canada’s immigration system.
For more information, visit the official IRCC website for updates on immigration levels, application processes, and policy changes.
Learn Today
Permanent Resident → A person authorized to live permanently in Canada but not a Canadian citizen.
Temporary Resident → An individual allowed to stay in Canada for a limited time, such as students or workers.
Express Entry → A points-based system that ranks skilled worker candidates for immigration to Canada.
Immigration Levels Plan → A government policy setting annual targets for permanent and temporary immigration admissions.
Economic Immigration → Admission of immigrants based on skills and labor market needs to support Canada’s economy.
This Article in a Nutshell
Canada reduces immigration targets by 27% through 2027, with caps on temporary residents for the first time. Public concern remains high as the government seeks a cautious, skilled-worker-focused approach balancing economic needs and social pressures.
— By VisaVerge.com
