The Canadian government is planning to significantly decrease the number of temporary residents allowed into the country in the coming years. According to the latest budget figures, Canada aims to admit only 385,000 temporary residents next year, a 43 percent reduction from the 2025 target, followed by 370,000 in the subsequent two years. These new targets represent a decrease compared to the immigration plan released last year, which had set a goal of welcoming over 516,000 temporary residents in 2026.
The shift in focus towards temporary residents is part of the government’s efforts to lower overall immigration levels. Finance Minister François-Philippe Champagne stated that the government is striving to bring immigration to more sustainable levels, citing the need to balance capacity and welcoming new arrivals. The previous administration had already initiated cuts to immigration following a surge in post-pandemic labor demand.
The latest budget highlights a reduction in the number of temporary foreign workers and international student arrivals, along with fewer asylum claims compared to the previous year. The government plans to grant permanent residency to 380,000 immigrants annually over the next three years, maintaining consistency with previous immigration targets.
The current strategy emphasizes economic needs in immigration planning, with a focus on attracting highly skilled individuals. The budget outlines a plan to increase the share of economic migrants among permanent residents from 59 percent to 64 percent in the next three years. Recognizing the challenges faced by recent immigrants, the government has allocated funds to accelerate the recognition of foreign credentials.
Additionally, the budget proposes expedited permanent residency status for specific groups, including work permit holders and protected persons awaiting approval. A new pathway for U.S. H-1B visa holders in specialized occupations is also set to be launched. Migrant rights groups have criticized the plan, expressing concerns about its impact on refugees and migrants.
