The federal government has released its newest immigration levels plan, outlining a noticeable shift in how newcomers will be welcomed into Canada over the next few years. The central change is a reduction in the number of temporary residents, while permanent resident admissions remain largely steady with a stronger emphasis on the economic class.
This update reflects a recalibration in response to housing capacity, public services, and changing public attitudes toward immigration.
1. Reduction in Temporary Resident Target
The number of temporary residents Canada plans to admit is being significantly lowered.
| Year | Temporary Resident Target | Notes |
|---|---|---|
| 2026 | 385,000 | Approx. 43% decrease compared to previous projections |
| 2027 & 2028 | 370,000 each year | Continues reduced levels |
This includes:
- International students
- Temporary Foreign Workers
- Some work-authorized visitor categories (e.g., working holiday visas)
The previous immigration plan indicated over 516,000 temporary residents for 2026 — so this updated direction represents a substantial scale-back.
2. Permanent Residency Numbers Remain Steady, but Composition Shifts
The plan maintains a target of around 380,000 permanent residents annually.
However, the distribution changes:
- Economic Class share increases → from 59% to 64%
- Family sponsorship sees a slight decrease
- Refugee/humanitarian numbers remain stable
This means the system will increasingly prioritize workers with skills in demand, especially in healthcare, technology, trades, and research fields.
3. A One-Time PR Transition for Work Permit Holders
The government intends to introduce a one-time measure to transition up to 33,000 current work permit holders to permanent residency between 2026 and 2027.
Full details are pending and will depend on how eligibility criteria are defined when the program is tabled. The intent appears to be addressing a portion of temporary workers who are already integrated into workplaces and communities.
4. Additional Focus on Skilled Talent and Credential Recognition
The plan also includes measures to:
- Accelerate foreign credential recognition (supported by a $97M reallocation)
- Launch an expanded pathway for U.S. H-1B visa holders
- Invest $1.7B over 13 years to attract international research talent
This suggests continued interest in high-skilled mobility, even as broader temporary admissions are reduced.
How This May Be Interpreted
The changes do not indicate a decrease in the importance of immigration to Canada’s long-term demographic or economic growth. Instead, they signal:
- A shift from short-term temporary entry toward more selective and structured permanent pathways.
- Capacity-based planning, particularly in relation to housing and provincial settlement resources.
- Efforts to align skills brought in with economic demand.
- Public perception management, given recent polling showing increased concern over immigration pace.
How these changes will be implemented will depend on:
- The operational policies the Immigration Minister tables in the coming months,
- Provincial alignment (especially regarding student admissions and PNP allocations),
- Labour market conditions moving into 2026.
What to Watch Next
Over the coming months, key questions include:
- What criteria will define the 33,000-person PR transition program?
- How will international student intake caps be applied across provinces and institutions?
- Will employers adjust hiring strategies away from temporary permits?
- Will Express Entry and PNP scoring adapt to further prioritize Canadian work experience?
These operational decisions will shape the practical impact of the plan.
If you are currently a temporary resident, international student, or worker and are unsure how these changes may affect your pathway, it’s important to stay informed as implementation details are released.
For case-specific guidance or to understand your next steps, contact Yoke Immigration for a consultation.
