Canada slashes permanent residency targets by 21% 

The Canadian government has announced plans to reduce next year’s permanent resident targets from 500,000 to 395,000 in 2025 – a net reduction of 105,000.  

Permanent resident levels will be further reduced to 390,000 in 2026 and 365,000 in 2027.  

Immigration minister Marc Miller’s announcement was preceded by an address by Prime Minister Justin Trudeau, who emphasised that “now is the time to make adjustments to stabilise the immigration system that we need and get it right for Canadians right now”. 

The drop in immigration by more than 120,000 over three years is a dramatic U-turn from the announcement last year to further increase permanent resident intake to 500,000 in 2025. 

The plans were announced in a briefing today by Trudeau and immigration minister Miller and will be tabled as a statutory matter on November 1. 

Minister Miller stressed “the need to focus on the people that are already here”, so as not to put additional demands on healthcare, housing and immigration services. 

“The permanent resident targets are expected to impact the housing supply gap by 670,000 units by the end of 2027, so we won’t have to build an additional 670,000 units by that time,” said Miller. 

Over 40% of permanent residents will come from the labour pool of those already in Canada, said Miller, transitioning many temporary residents to permanent status.  

Focussing on long-term economic growth and key labour market needs, permanent resident applicants in the “economic” classes will represent just over 60% of total admissions by 2027. 

According to stakeholders, students who don’t fit into an Express Entry category – STEM, healthcare, agriculture, trades, transport, French – will be the hardest hit by the policy changes. 

CBIE continues to be greatly concerned about the heavily politicised nature of these abrupt policy changes, which arguably represent a significant over-correction

Larissa Bezo, CBIE

“For the first time, the Immigration Levels Plan includes measures for temporary residents” – including international students and people on the temporary workers program, announced Miller.  

Canada’s temporary resident population will be reduced by 445,000 in 2025, and an additional 445,000 in 2026.  

The reduction in temporary residents is less surprising given the IRCC’s overall goal of reducing temporary residents from 6.5% of Canada’s total population to 5.2% by 2026. 

The announcement builds on a series of changes over the past year, including a cap on international students and tightened eligibility requirements for temporary foreign workers. 

“Under the watch of provinces, some colleges and universities are bringing in more international students than communities can accommodate, treating them as an expendable means to line their own pockets. That’s unacceptable,” said Prime Minister Trudeau. 

Miller pointed to the 43% reduction in study permits as evidence of the success of the international student cap.  

Stakeholders, who widely expected a permanent residency reduction of 12-15% rather than 20% have expressed concerns that the policy is short-sighted and politically motivated.

“CBIE continues to be greatly concerned about the heavily politicised nature of these abrupt policy changes, which arguably represent a significant over-correction.

“We are now at great risk as a country in seriously hampering our ability to recruit and retain the high-quality global talent that Canada so desperately needs to address our labour market and demographic realities, thereby jeopardising our long-term growth and prosperity.” said Larissa Bezo, CBIE president & CEO.