CANADA’S 2026–2028 IMMIGRATION LEVELS PLAN
The Government of Canada has partially unveiled its 2026–2028 Immigration Levels Plan alongside Budget 2025, outlining a recalibrated approach to managing population growth, infrastructure capacity, and labour market needs. This new direction represents one of the most significant adjustments to Canada’s immigration framework in recent years, aiming to ensure that the country’s immigration system remains both sustainable and responsive to national priorities.
Balancing Growth with Capacity
Under the newly released plan, temporary resident admissions will decline substantially—from 516,600 to 385,000—as Ottawa seeks to address mounting pressures on housing, healthcare, and social infrastructure across several provinces. The government has emphasized that this adjustment does not signal a reduction in Canada’s openness to newcomers, but rather a measured approach to balance population inflows with the country’s institutional and community capacity.
Impact on International Students and Temporary Workers
A major change concerns international student admissions, which will face a 50% reduction, limiting new study permit allocations to 155,000 in 2026 and 150,000 in 2027 and 2028. This measure builds on earlier steps taken in 2024 and 2025 to stabilize the number of study permits under a national cap system introduced to alleviate housing shortages and ensure the integrity of the international education sector.
Similarly, the number of temporary foreign workers entering Canada is set to decline, with 230,000 projected for 2026 and 220,000 for both 2027 and 2028. These adjustments reflect the federal government’s intention to manage temporary migration more effectively while supporting labour market needs through targeted and permanent pathways.
Support for Permanent Residency Pathways
Despite these reductions, Budget 2025 includes a $19.4 million investment over four years to accelerate the transition to permanent residency for up to 33,000 work permit holders. This funding aims to streamline the application process and create faster, more predictable routes for skilled workers who are already contributing to the Canadian economy.
This initiative aligns with Canada’s ongoing strategy to retain experienced temporary residents and integrate them into the labour force long term, rather than relying heavily on temporary migration programs.
Growing Role of Economic Immigration
A key highlight of the new plan is the increase in the share of economic immigration, which will account for 64% of total permanent resident admissions. This represents approximately 239,800 new economic immigrants in 2026, rising to 244,700 in subsequent years—a significant increase from 59% in 2025.
This expansion underscores Ottawa’s commitment to addressing critical labour shortages, supporting economic growth, and ensuring that Canada’s immigration system continues to attract the world’s best talent across sectors such as healthcare, technology, trades, and green industries.
A Focus on Long-Term Sustainability
Canada’s approach for 2026–2028 highlights the government’s desire to strike a balance between immigration and infrastructure readiness. With rising housing costs and regional disparities in service capacity, the federal plan signals a shift toward smarter, more sustainable immigration management.
While the number of temporary residents may decrease, the continued prioritization of skilled workers and permanent pathways demonstrates that Canada remains deeply committed to immigration as a cornerstone of its demographic and economic strategy.
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