(CANADA) A clear majority of Canadians now want fewer newcomers, and that shift in public opinion is driving the biggest reset of Canada’s immigration system in decades. In late 2024, nearly 60% of people polled said the country was accepting too many newcomers. Concerns about housing costs, crowded transit, and pressure on hospitals and schools helped push that view into the mainstream for the first time since 2000.
The federal government responded by lowering permanent resident targets and capping temporary residents, arguing the pause will help Canada plan better and keep public trust in the long term.

The 2025–2027 Immigration Levels Plan: key changes
In October 2024, Ottawa released the 2025–2027 Immigration Levels Plan, rolling back earlier expansion plans and pivoting toward candidates already in Canada.
- Permanent resident targets: 395,000 (2025), 380,000 (2026), 365,000 (2027) — a marked drop from the previous goal of 500,000 by 2025.
- Temporary residents cap: a national cap at 5% of the population by the end of 2026, down from an estimated 6.5–7% in 2023–2024.
- The government says the aim is to keep the system sustainable while easing pressure on housing and services.
IRCC frames these moves as a temporary rebalancing to protect core economic goals while responding to public concern.
How the policy pivot affects different streams
The shift touches nearly every part of the immigration system. Key effects include:
- International students
- Numbers down about 10% from 2025, with the biggest cuts in certificate and post-graduate programs.
- Many colleges and universities are trimming staff and programs as funding models adjust.
- Overall student levels are nearing 2018/2019 figures.
- Temporary Foreign Worker Program (TFWP)
- Tighter rules and eligibility.
- Moratorium on low-wage Labour Market Impact Assessments (LMIAs) in metropolitan areas with unemployment above 6%.
- Employers in those regions face fewer low-wage options; sector/region-specific pilots are being developed for health care, skilled trades, and food processing.
- Express Entry
- Continues as the main economic pathway but now prioritizes candidates already living, working, or studying in Canada.
- Category-based draws emphasize health, skilled trades, education fields, and strong French-language ability.
- IRCC projects more than 40% of new permanent residents in 2025 will be people who were already in Canada as temporary residents.
- Provincial Nominee Program (PNP)
- Provinces are asked to align with federal guidance.
- 75% of PNP nominations should go to candidates already in Canada.
- Transition trend
- The system is moving toward “transition to permanent” — fewer newcomers overall but more selection of those with Canadian experience.
Quick policy summary (table)
Policy area | Key change |
---|---|
Permanent residents | 395,000 (2025) → 380,000 (2026) → 365,000 (2027) |
Temporary residents | Cap at 5% of population by end of 2026 |
International students | ~10% cut from 2025; levels near 2018/2019 |
Express Entry | Priority for candidates already in Canada; category-based draws |
TFWP | Stricter eligibility; low-wage LMIA moratorium where unemployment > 6% |
PNP | Provinces expected to nominate 75% from within Canada |
Transition share | >40% of new PRs in 2025 expected to be former temporary residents |
Immediate effects on people and institutions
The near-term effects are already visible across several groups.
- International students
- Tougher competition for study permits and more limits on post-graduation work permits.
- Spousal open work permits are tighter, affecting family income planning for student households.
- Students should map admission, in-study work options, and realistic post-graduation pathways before committing.
- Temporary workers
- More scrutiny and, in some regions, fewer routes into low-wage roles.
- Some sectors that relied on low-wage temporary workers face hiring problems.
- Employers
- Trade-off between reduced overall intake and targeted support for high-need sectors.
- New regional and sector pilots aim to fill urgent gaps (health care, skilled trades, food processing), but business groups warn caps could slow growth if pilots are poorly designed.
- Prospective overseas immigrants
- Pathways are narrower but not closed.
- Those with in-demand skills, French-language ability, or Canadian ties still have options, though timelines may lengthen.
“Fewer newcomers overall, more selection of those with Canadian experience, and a tighter temporary stream.”
What applicants and families should know
Prospective immigrants should pay close attention to three shifts:
- Canadian experience counts more than before.
- Time spent studying or working in Canada can move a candidate ahead, especially in category-based draws.
- Sector focus matters.
- Health care, skilled trades, and education fields remain priorities.
- Strong French is a significant advantage.
- Temporary streams are tighter.
- Study and work permits face caps and closer eligibility checks.
- Expect more scrutiny and possibly longer processing times.
Families should note that tighter spousal work-permit rules can affect household budgets and settlement plans. Employers in high-unemployment metros must adapt to the LMIA moratorium by upskilling staff, improving productivity, or joining targeted pilots.
Institutional and economic implications
- Education providers are recalibrating: program cuts where intake depended on higher international numbers means fewer seats and more competition.
- Advocacy groups warn reduced immigration could harm long-term growth, university/college revenue, and innovation in fast-growing sectors.
- IRCC argues a steadier pace will rebuild capacity and fairness, while introducing digital tools in 2025–2026 to streamline applications and improve online accounts and status updates.
Pilots and possible adjustments
VisaVerge.com reports Ottawa is considering pilots for caregivers, rural areas, and select sectors in the near term. Some caregiver pathways may offer permanent residence on arrival as an experiment to test targeted intake without breaching new caps. If successful, pilots could become longer-term programs.
IRCC also says targets remain flexible: adjustments could follow improvements in housing supply, changes in unemployment, or shifts in public opinion.
What to watch next
- Whether the new targets and temporary cap calm public concern around housing and services.
- If housing supply and service capacity improve, the government may ease caps or lift targets later in the planning cycle.
- If not, lower numbers could persist or be reduced further.
People ready to apply should follow official updates closely. Draws and quotas can change with little notice.
For authoritative updates, see the IRCC news page: https://www.canada.ca/en/immigration-refugees-citizenship/news.html
This Article in a Nutshell
Canada’s 2025–2027 Immigration Levels Plan responds to increased public concern about housing, transit and service pressure by lowering permanent resident targets and capping temporary residents. Targets fall to 395,000 in 2025, 380,000 in 2026 and 365,000 in 2027, with a temporary-resident cap set at 5% of the population by end of 2026. International student intakes are cut about 10% from 2025 levels. Policy shifts prioritize candidates already in Canada — IRCC expects over 40% of new permanent residents in 2025 to be former temporary residents — and ask provinces to nominate 75% from within Canada. The Temporary Foreign Worker Program faces stricter rules and LMIA moratoria in metros with unemployment above 6%. The government calls the changes a temporary rebalancing and may adjust targets if housing, unemployment or public opinion shifts. Applicants should focus on Canadian experience, in-demand sectors (health care, skilled trades, education) and French ability, while institutions and employers adapt to staffing and program changes.