Provincial Nominee Programs Face Challenges with Reduced Immigration Targets

Canada's Provincial Nominee Programs (PNPs) are navigating significant challenges in 2025 due to sharply reduced immigration targets. Provincial ministers from Manitoba and Newfoundland and Labrador have voiced concerns, expressing a strong desire to welcome more immigrants than their current allocations permit.

This comes amidst other setbacks, such as the delayed re-opening of the Northwest Territories Nominee Program (NTNP), which had initially planned to accept 100 applications by January 16, 2025. Similarly, the New Brunswick Provincial Nominee Program (NBPNP) has announced adjustments to its economic immigration programs to align with recent changes to Canada’s immigration system.

For immigrants hoping to apply through a PNP, this reduced target could result in delays and fewer opportunities in 2025.

The Reduction in Provincial Immigration Targets

Every October, Canada releases its annual Immigration Levels Plan, which confirms the immigration targets for the following year. In 2024, Immigration Minister Marc Miller announced a 50% reduction in PNP admission allocations for 2025 compared to the previous year.

Here’s a look at the dramatic change:

This significant decrease has shifted the landscape for PNPs, which had been set to become Canada’s largest intake pathway for economic immigrants. In fact, PNP admissions were projected to outpace federal admissions through the Express Entry system.

The Role of the In-Canada Focus Category

To offset the reduced provincial immigration targets, Immigration, Refugees and Citizenship Canada (IRCC) introduced a new sub-category under its federal immigration allocations: the In-Canada Focus category. This category prioritizes:

1. Canadian Experience Class (CEC) candidates through Express Entry.
2. Candidates nominated under enhanced PNP streams.

In 2025, the In-Canada Focus category has been allocated 82,890 admissions, offering provinces some relief by enabling them to settle more immigrants through federally managed pathways. However, this category is unlikely to fully compensate for the drastic reductions in PNP targets.

Impact on Provincial Immigration Programs

Provinces must adhere to federal immigration targets and allocations, as immigration in Canada is regulated at the federal level. As a result, PNPs are being forced to adjust to a new reality of welcoming far fewer immigrants compared to previous years.

This change is expected to have a ripple effect, particularly on local economies that rely on immigrants to address labour shortages in critical industries. For example:

• Manitoba and Newfoundland and Labrador have expressed concerns over their inability to meet labour demands.
• The delay in reopening the NTNP further limits immigration opportunities for skilled workers and employers in the Northwest Territories.

Looking Ahead

Canada’s provincial immigration ministers now face the challenge of navigating a vastly different immigration landscape in 2025. With fewer immigrants coming through PNPs, they must seek creative solutions to maintain economic growth and address labour shortages.