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Canada Announces 20% Reduction in Immigration for 2025

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Understanding Permanent Resident Targets in Canada

In the newly released Immigration Levels Plan, the government has announced reductions in its targets for permanent resident admissions over the next three years:

  • 2025: 395,000 (down from 485,000 in 2024, and a previous target of 500,000 for 2024-2026)
  • 2026: 380,000 (down from the 500,000 target in the earlier 2024-2026 plan)
  • 2027: 365,000 (down from the 500,000 target)

Although overall immigration targets have been reduced, the government has increased the focus on economic immigration. For 2025, economic immigration targets have been reduced by 17% (from 281,000 to 232,000). Additionally, only 40% of these economic immigrants are expected to come from within Canada.

Proposed Permanent Resident Admission Targets for the Next Three Years:

Immigration Category202520262027
Total PR admissions395,000
(367,000 – 436,000)
380,000
(352,000 – 416,000)
365,000
(338,000 – 401,000)
French-speaking admissions outside of Quebec8.5% (29,325)9.5% (31,350)10% (31,500)
Economic Immigration232,150
(215,000 – 256,000)
229,750
(214,000 – 249,000)
225,350
(207,000 – 246,000)
Family Reunification94,500
(88,500 – 102,000)
88,000
(82,000 – 96,000)
81,000
(77,000-89,000)
Refugees, Protected Persons, Humanitarian and Compassionate, and Other68,350
(63,500 – 78,000)
62,250
(56,000 – 71,000)
58,650
(54,000 – 66,000)

In an unexpected turn, Prime Minister Justin Trudeau personally led the announcement, a task typically reserved for the Immigration Minister. Trudeau praised the impact of immigration on Canada, stating, “It’s made our economy the envy of the world.” Both he and Immigration Minister Marc Miller reiterated Canada’s strong commitment to maintaining support for immigration.

Temporary Resident Admission Levels

For the first time, this year’s Immigration Levels Plan sets specific targets for temporary residents, a change from previous plans which did not include such targets. The announcement follows a series of adjustments made to Canada’s immigration system this year, particularly concerning temporary residents (those on work or study permits). The government aims to reduce the proportion of temporary residents in Canada from 7% to 5% of the total population by the end of 2026.

The government has proposed the following breakdown for temporary resident levels in Canada for the next three years:

Temporary Resident (TR) Category202520262027
Total TR Arrivals and Ranges673,650
(604,900 – 742,400)
516,600
(435,250 – 597,950)
543,600
(472,900 – 614,250)
Workers367,750210,700237,700
Students305,900305,900305,900

The government anticipates that the transition of temporary residents to permanent residents—via pathways like Canadian Experience Class (CEC) Express Entry draws and provincial nominee programs (PNPs)—will play a key role in reducing the proportion of temporary residents in Canada from 7% to 5% of the overall population.

Study Permit Application Cap for 2024

On January 22, Immigration, Refugees and Citizenship Canada (IRCC) introduced the first-ever cap on international student admissions to address the rapidly growing number of foreign nationals on study permits in Canada. Initially set as a temporary two-year policy, it aimed to limit new study permits for undergraduate and college students to 360,000 in 2024. However, the policy was later made a permanent part of Canada’s international student program, extending to regulate study permits for master’s and PhD students as well.

Alongside this change, IRCC revised the eligibility criteria for Post-Graduation Work Permits (PGWPs). In January, they announced that, starting September, international students enrolled in programs with curriculum-licensing agreements would no longer qualify for PGWPs.

Changes to the Temporary Foreign Worker Program (TFWP)

Canada’s Temporary Foreign Worker Program (TFWP) has faced increasing criticism in recent months. In his announcement today, Prime Minister Trudeau condemned Canadian businesses for “exploiting cheap foreign labour” and stressed the need for reform.

Earlier this year, the government took action by suspending the processing of labour market impact assessments (LMIAs) for the low-wage stream of the TFWP in Montreal and in census metropolitan areas (CMAs) where the unemployment rate is 6% or higher. Additionally, the government reduced the duration of work permits for the low-wage stream from two years to one year.

Previous Measures to Limit Study Permits, PGWPs, and Spousal Open Work Permits

On September 18, Immigration Minister Marc Miller announced changes expected to significantly reduce the issuance of permits over the next three years, including:

  • 300,000 fewer study permits
  • 175,000 fewer Post-Graduation Work Permits (PGWPs)
  • 150,000 fewer spousal open work permits

Key changes include:

  • Limiting PGWPs for college graduates to those from programs aligned with in-demand jobs
  • Introducing a language test requirement for PGWPs (CLB 5 for college graduates, CLB 7 for university graduates)
  • Requiring master’s programs to be at least 18 months in length for spouses of students to qualify for spousal open work permits
  • Restricting spousal open work permits to spouses of Canadian citizens or permanent residents employed in in-demand occupations

Graduates of qualifying bachelor’s, master’s, and PhD programs will remain eligible for PGWPs, regardless of their field of study.

Overview of the Immigration Levels Plan

The Immigration Levels Plan is the government’s official framework for outlining its immigration strategy. It sets annual targets for the upcoming year and provides provisional targets for the two subsequent years. While the following year’s targets are typically firm, those for the second and third years are more flexible and can be adjusted.

Despite reductions in the number of new permanent residents, the targets for 2025 are still higher than pre-pandemic levels.

Justification for Changes

Immigration Minister Marc Miller described the adjustments as a “middle of the road” approach, emphasizing, “we have a controlled immigration plan that we can be proud of.” Prime Minister Trudeau, however, acknowledged a political angle to the changes, stating, “We’re focused on winning the next election.

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