The Biggest Immigration Changes Coming for International Students and Temporary Foreign Workers in Canada

Canada is preparing for major updates that will directly impact international students and temporary foreign workers. These changes are based on announcements connected to the 2026–2028 Immigration Levels Plan and Budget 2025, and they will influence how newcomers study, work, and transition to permanent residence in the coming years.

This blog explains the most significant updates expected in the months ahead and what applicants need to prepare for.

Changes Affecting Temporary Foreign Workers

1. Faster Pathways from Temporary Resident to Permanent Resident

The government plans to help up to 33,000 temporary workers transition to permanent residency (PR) in 2026 and 2027.

While IRCC has not yet released full program details, it has confirmed that this transition will focus on:

• Workers already contributing to the Canadian economy
• Individuals with strong community ties
• Applicants with tax history
• Workers in in-demand sectors
  
  

This follows trends from recent years, where IRCC has prioritized Canadian work experience. According to the latest Express Entry Year-End Report, 64% of invites issued in 2024 went to candidates with at least one year of Canadian work experience.

This signals a continued shift toward favouring workers already in Canada.

2. Tighter Eligibility for the Temporary Foreign Worker Program (TFWP)

The federal government has indicated that stricter rules are coming for the TFWP.
Prime Minister Mark Carney emphasized that the program must become more targeted toward strategic sectors and regional needs.

This is happening alongside:

• A pause on LMIA processing in regions with unemployment of 6% or higher
• A major cut to TFWP admissions for 2026:
• From 82,000 (previous plan) to 60,000
  
  

These changes suggest that LMIA approvals may become more difficult to obtain, especially in regions facing labour surpluses.

3. New Sector-Specific PR Pathways and Work Permit Streams

In response to labour shortages in specific industries, the federal government is rolling out more targeted pathways. These include:

• PR Pathway for H1-B Visa Holders

Canada will offer an accelerated PR option for U.S.-based tech talent in key industries such as health technology, research, and advanced industries.

• Construction Worker PR Pathway

IRCC has reserved space for up to 6,000 undocumented construction workers already living in Canada.

• Agriculture and Fish Processing Stream

A new immigration stream will be launched for foreign workers in agriculture and fish processing, including a dedicated work permit option.

• Reopening of Existing PR Pilots

Several pilot programs, including the Home Care Worker Immigration Pilots, will reopen for new applications in 2026.

Workers already in Canada with the required experience will have a strong advantage in these targeted pathways.

Changes Affecting International Students

1. Reduced Study Permit Cap for 2026

The federal government has used study permit caps for the past two years. The next update will be released in January 2026.

The new Immigration Levels Plan shows a reduction in international student arrivals:

• From 305,900 (previous target)
• To 155,000 for 2026
  
  

This likely means the study permit cap will also be lowered, making applications more competitive. However, Canada did not meet its targets for new student admissions in 2025, which may offset the impact of a lower cap.

2. Graduate Students Exempt from the Cap

Starting January 1, 2026, Master’s and PhD students will be exempt from the study permit cap.

This also means:

• No Provincial Attestation Letter (PAL/TAL) required
• Faster processing for PhD students and their families — in some cases, as quick as two weeks
  
  

This exemption is intended to attract highly skilled researchers and advanced-degree students.

3. Removal of Certain Programs from PGWP Eligibility

In June 2025, IRCC announced changes to the list of programs eligible for the Post-Graduation Work Permit (PGWP).
This impacts 178 study programs across Canada.

The enforcement of this change was postponed to early 2026, but IRCC confirmed it will come into effect shortly.

International students planning to work in Canada after graduation must make sure their chosen program remains PGWP-eligible before applying.

What These Changes Mean for Applicants

These updates point to a major shift in Canada’s immigration strategy:

• More focus on workers already in Canada
• More programs tied to specific sectors
• Greater scrutiny on LMIA applications
• Stronger emphasis on advanced-degree students
• Tighter selection for study permits and PGWPs

For temporary foreign workers, Canadian experience is becoming the key to long-term immigration success.