Canada’s newly announced 2025-2027 Immigration Strategy aims to manage population growth while maintaining economic stability and ensuring social cohesion. Canada has reduced the number of new permanent residents over the next few years from 485,000 in 2024 to 395,000 in 2025, 380,000 in 2026 and 365,000 in 2027. This is the first time in recent years that Canada has decided to lower its immigration targets.
This approach brings some important changes to those already living in Canada, including Canadian citizens, permanent residents, international students, and temporary workers. Below is an overview of how the new policy will affect current residents.
Path to permanent residence for temporary residents
The main focus of the latest immigration plan is to facilitate the transition from temporary to permanent residence. This change is expected to benefit international students and temporary foreign workers who are already in Canada and integrated into local communities.
According to the plan, more than 40 per cent of new permanent residents in 2025 will come from individuals already living in Canada, particularly those with education and work experience in Canada. This targeted approach aims to give permanent status to those who have contributed economically and are well-settled, without putting further strain on public services.
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Stricter standards for international students and temporary workers
The new policy will tighten controls and eligibility standards for international students and temporary workers. A cap on the number of international students will make the admissions process more competitive, impacting future applicants and those already enrolled at Canadian institutions.
Additionally, students may face stricter regulations when transitioning to a work permit or permanent residence after graduation. Eligibility requirements for temporary foreign workers will be reviewed, potentially impacting work permit extensions and transition to permanent residence status. These measures are designed to ensure that people staying in Canada meet the country’s economic needs and integrate smoothly into society.
Relieving pressure on housing and infrastructure
Adjustments to immigration targets are expected to ease current pressures on housing and infrastructure. A reduction in both permanent and temporary residents could stabilize the housing market and make buying or renting more affordable for existing residents. The plan is also expected to reduce crowding on public transportation, schools and health care facilities, potentially improving access and quality of services for people already living in Canada. This slowing of population growth is aimed at creating a more balanced and sustainable living environment for residents.
Job market adjustment
The revised immigration plan focuses on meeting specific labor market demands, focusing on key areas such as health care and skilled trades. This targeted approach could lead to a more competitive job market for those currently working or studying in high-demand fields.
Nevertheless, it aims to ensure that economic growth continues without causing a sudden increase in unemployment. Expected outcomes include higher wages and improved employment prospects for current residents as the economy adjusts to a controlled influx of new entrants.
Strengthening oversight to protect the immigration system
The reforms in the new immigration strategy aim to protect the quality and integrity of Canada’s systems. Changes to the international student program will increase oversight, maintain Canada’s educational reputation, and ensure high standards for international students.
In particular, regulations regarding work permits for spouses of international students and temporary workers will also be strengthened. These adjustments are intended to protect Canada’s labor market and social services, promote fair use of immigration channels, and ensure that contributions from newcomers are genuine.
Regional and local impacts
The impact of these immigration changes will vary across Canadian provinces and territories. In densely populated provinces such as Ontario and British Columbia, housing and infrastructure challenges are expected to ease as population growth slows.
Conversely, rural and smaller states may vary in the types of new entrants they attract. A focus on skilled workers and Francophone immigrants could address specific labor shortages and support regional development, particularly in sectors such as health care, construction and trade.
Overall, the 2025-2027 Immigration Plan is designed to balance sustainable growth with the benefits immigration brings to Canada. The aim is to ensure that those already living in the country can experience a stable and supportive environment, while also enjoying the cultural diversity and economic contributions of new residents.
