Canada’s Immigration Levels Plan 2025-27: Major Cuts & What It Means

In October 2024, Immigration, Refugees and Citizenship Canada (IRCC) published the new multi-year Immigration Levels Plan 2025-2027, which indicates a clear shift in Canada's immigration plans. The plan proposes low admissions for permanent and temporary residents over the next three years.

What are the main reductions?

• The overall target for permanent residency is 395,000 in 2025, and then it will decrease to 380,000 in 2026, and 365,000 in 2027. 

• This is the first time IRCC is producing targets for temporary residents (international students + foreign workers). The target for 2025 is about 673,650. Important note: for 2026 the targets will approximately be 516,600; 2027 will be about 543,600. 

• The focus is shifting to "in-Canada" immigration; more than 40% of permanent resident admissions for 2025 will be from people already in Canada (students/workers) and seeking to stay here. 

• The plan also emphasizes economic streams (skilled workers, trades, health care); approximately 62% of admissions will go into the economic class by 2027.

Why is Canada making these cuts?

• To bring immigration numbers in line with current housing and infrastructure capacity, including additional pressure on housing and infrastructure in large urban centres. 

• Since the rapid increase in temporary resident numbers (students + workers), the IRCC wishes to bring down the share of Canada’s total population that are temporary residents to 5% by the end of 2026. 

• A shift to ensure newcomers are already engaged in Canadian society (or about to be) so they can contribute to labour market expansion sooner rather than all coming from outside Canada.

Implications for future applicants: students and workers

International students - The reduction in the cap on the number of temporary residents means there will be reduced availability of study permits and closer scrutiny of immigration eligibility associated with the Post-Graduation Work Permit (PGWP). This means that students will have to demonstrate more robust planning to indicate that their program and institution will meet immigration criteria.

Workers - For individuals who arrive in Canada on a work permit (or intend to), being in Canada will be beneficial: living and working in Canada will be prioritized.

Permanent residence - The competition for PR numbers may become more demanding due to fewer overall target numbers. Applicants need to ensure that they are pursuing in-demand occupations, high language abilities, Canadian experience, and a genuine job offer.

Advice from professionals

With the way the environment is changing, professional advice has never been more important! Here are some specific ways consultants and services can assist:

• Canada work permit consultants: They assist you in selecting the appropriate work-permit stream, ensure the documentation is accurate and complete, and inform you of consideration of how a work permit may pave a pathway to permanent residence under the new pathways.

• Canada work visa consultants: Assist you in identifying new employers and if it leads to a job offer, help you complete the application for a work visa, to assist with the changing temporary resident targets.

• Canada work permit visa consultants: Provide assistance for workers in transitioning from temporary status to permanent residence, which is increasingly becoming a vital path, particularly when considering the additional "in-Canada focus."

• Canada education consultants: For students, this would entail support in selecting a thoughtful institution, program and consideration of how study selections line up with the shrinking temporary resident target and new permanent resident pathways.

A full-service Canadian Immigration Consultancy would provide updated information on policy changes, eligibility criteria, and assist with your long-term plans in line with these realities.

Things to take into account

1. Plan ahead: If you are studying or working in Canada, take time to think about your transition to permanent residence. Given the numbers are lower now.

2. Choose in-demand occupations: As the focus is now on economic class streams, you will have a better shot if your occupation is on Canada's in-demand list.

3. Gain Canadian experience: Since the plan is designed for those already having studied or worked in Canada, developing work or study experience in Canada will strengthen your situation.

4. Stay up-to-date: Policies and targets have been changing. Working with consultants means you are always going to have the latest information.

5. Be open to location: Given pressures on the larger cities, there may be better choices in smaller provinces, including quicker pathways to permanent residency.

Conclusion

Canada’s Immigration Levels Plan 2025-27 marks a significant shift in the volume of newcomers who will be welcomed and the prioritization of certain profiles through the immigration system. While the overall target levels are lower, the picture is clearer: a focus on workers and students who are already in Canada, an emphasis on the important economic priorities, and a clearer path to integration.

For anyone considering immigration in 2025 or beyond, it is important to develop your strategy in consideration of the new arrival numbers and priority profiles. This means developing a strategy with professionals such as Canada work permit consultants, Canada work visa consultants, Canada work permit visa consultants, Canada education consultants, and a reputable Canadian Immigration Consultancy. The better prepared you are the better positioned you will be to succeed in this new environment.