What to Expect from Canada’s Upcoming Immigration Levels Plan (2025-2027)

Canada is preparing to release its Immigration Levels Plan for 2025-2027 by November 1. This plan is important because it outlines how many permanent residents will be admitted over the next three years, setting targets for each year. The plan impacts not only Canada’s immigration goals but also the country's population growth, social services, taxation, housing, healthcare, and the job market.

What’s New in the 2025-2027 Plan?

This year’s plan will bring a major change: for the first time, temporary residents (like those on work or study permits and visitor visas) will be included in the plan. Immigration Minister Marc Miller announced that Canada will aim to reduce the number of temporary residents from the current 6.2% of the population to 5% over the next three years. In 2023, Canada had over 2.5 million temporary residents, so this is a significant shift in policy.

Impact on Study Permits

In 2023, Canada set a cap on the number of study permits it would process, reducing the number of permits by 35%. IRCC expects to process 606,000 applications and approve around 360,000 study permits. This reduction was surprising, as the minister had previously stated that he was not in favor of limiting the number of international students.

Moving forward, IRCC plans to reduce the number of permits processed even further in 2025, including master’s and PhD students in the cap for the first time. This could mean fewer opportunities for international students to study in Canada.

Changes to Open Work Permits

IRCC is also planning to cut the number of Post-Graduation Work Permits (PGWPs) and Spousal Open Work Permits (SOWPs) issued. New language requirements for PGWP applicants will require university graduates to have a Canadian Language Benchmark (CLB) score of 7, and college graduates to have a CLB 5. This change alone could result in 175,000 fewer PGWPs being issued over the next three years.

In addition, spouses of master’s students may only qualify for a SOWP if the master's program is at least 16 months long or is in a field deemed critical by IRCC. The reduction in SOWPs is expected to reduce the number of temporary residents by 50,000 over the next few years.

Closed Work Permits and TFWP

There are also changes to how employers can use the Temporary Foreign Worker Program (TFWP). Employers are now restricted to hiring no more than 10% of their workforce through the TFWP, and the duration of employment for low-wage workers has been cut from two years to one. These changes aim to reduce reliance on temporary foreign workers, particularly in areas with higher unemployment rates.

Permanent Resident Targets

The current Immigration Levels Plan (2024-2026) sets a goal of welcoming 500,000 permanent residents in 2025, with the same target for 2026. Most of these newcomers will be economic immigrants—skilled workers who contribute to Canada’s economy. However, Minister Miller has indicated that the new plan may include significant changes, including reconsidering the type of immigration Canada prioritizes.

Concerns and Future Outlook

As Canada’s population grows, there are rising concerns about the strain on affordable housing and the healthcare system. A recent report showed that Canadian support for immigration has declined, mainly due to worries about these challenges. Despite these concerns, both Minister Miller and Employment Minister Randy Boissonnault highlight the importance of immigration for Canada’s cultural and economic growth.

The upcoming Immigration Levels Plan will aim to balance the need for economic immigration with the challenges of managing temporary residents and ensuring the well-being of newcomers.