2025 Immigration Target: Canada Plans to Cut New Temporary Residents to 673K & Permanent Residents to 395K

The federal government has introduced new measures aimed at managing the number of temporary residents and reforming the immigration system to address evolving economic needs and labour market conditions.

The 2025–2027 Immigration Levels Plan outlines a 105,000 permanent resident admissions decrease by 2025.

The focus will shift to in-Canada applicants, with more than 40% of permanent residents expected to transition from temporary status. Economic immigration will make up 62% of permanent resident admissions by 2027, particularly in health care and trades sectors.

The plan, presented by Immigration Minister Marc Miller, focuses on reducing the number of temporary residents and balancing immigration with the country’s economic needs. For the first time, the plan includes specific targets for temporary residents, aiming to bring their proportion down to 5% of Canada’s population by 2026, compared to 6.5% currently.

New Permanent Residents – 2025 to 2027 Immigration Levels Plan

Screenshot from 2024 Annual Report to Parliament on Immigration/ Credit: Canada.ca

  • 105,000 fewer admissions in 2025 compared to projected levels announced in 2023 for the years 2024 to 2026.
    • reducing from 500,000 permanent residents to 395,000 in 2025
    • reducing from 500,000 permanent residents to 380,000 in 2026
    • setting a target of 365,000 permanent residents in 2027
  • Over 40% of permanent residents in 2025 will come from individuals already residing in Canada as students or workers.
  • Focus on economic immigration: 62% of permanent resident admissions will be for economic streams by 2027, prioritizing sectors like health care and trades.
  • Family reunification will account for nearly 24% of 2025 admissions.
  • Francophone immigration targets will increase: 8.5% in 2025, rising to 10% by 2027.
  • 15% of admissions are allocated to refugees and protected persons.

New Temporary Residents – 2025 to 2027 Immigration Levels Plan

Screenshot from 2024 Annual Report to Parliament on Immigration/ Credit: Canada.ca

  • Temporary residents will decline by 445,901 in 2025 and 445,662 in 2026 before a modest increase of 17,439 in 2027.
  • Temporary resident targets are set at 673,650 in 2025, 516,600 in 2026, and 543,600 in 2027.
  • International student study permits capped at 437,000 for 2025, a 10% reduction from 2024.
  • Post-Graduation Work Permit Program eligibility will be tightened.
  • Temporary Foreign Worker Program capped, with a 10% limit on low-wage stream hiring.
  • In 2025, 45% of new temporary residents will be international students, with this figure rising to 59% in 2026 and 56% in 2027.
  • The remaining arrivals will consist of temporary workers under the International Mobility Program and the Temporary Foreign Worker Program.
  • Measures such as the international student permit cap and changes to work permit eligibility for spouses of students and workers are part of efforts to reduce temporary residents to 5% of Canada’s population by 2026.

Screenshot from 2024 Annual Report to Parliament on Immigration/ Credit: Canada.ca

The federal government says the plan aims to ensure well-managed, sustainable growth and align immigration with labour market demands, while also addressing housing affordability and job market concerns.

“Today’s announcement is the next step in our plan to address the evolving immigration needs of our country. While it’s clear our economy needs newcomers, we see the pressures facing our country, and we must adapt our policies accordingly,” said Marc Miller, announcing the plan.

“These changes will make immigration work for our country so that everyone has access to the quality jobs, homes and supports they need to thrive. We have listened to Canadians, and we will continue to protect the integrity of our system and grow our population responsibly.”

More information is available here – 2024 Annual Report to Parliament on Immigration

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