In a major policy shift, Canada is significantly reducing its targets for new temporary residents (TRs) under the 2025–2027 Immigration Levels Plan. This move marks a fundamental change in how the country manages its migration system, balancing economic needs with pressure on housing and public services. Here's what this drop means — and what prospective international students and temporary workers need to know.

Why Canada Is Reducing Temporary Resident Targets

The heart of this reform lies in Canada's aim to lower its non-permanent resident population to about 5% of the total by the end of 2026. IRCC’s 2025–2027 Levels Plan formalizes, for the first time, a target for how many new temporary workers and students will be admitted each year — rather than allowing unlimited or purely demand-driven entries. The aim is to better match immigration inflows with Canada's capacity: for housing, social services, and integration infrastructure.

What Are the New Temporary Resident Targets?

Under the new plan, the temporary resident targets are sharply lower in 2026 compared to 2025. Specifically:

  • 2025 target: 673,650 new TR arrivals.
  • 2026 target: 516,600, representing a substantial drop.
  • 2027 target: 543,600, a modest rebound.

Breaking it down by category: IRCC estimates that in 2026, around 305,900 will be students (unchanged from prior years), while temporary workers are split between the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP). Notably, the number of IMP work permit holders is set to drop from 285,750 in 2025 to just 128,700 in 2026.

What’s Driving the Policy Shift?

Several forces explain why Canada is recalibrating its approach:

  • Housing & Public Service Strain: High temporary immigration was putting pressure on housing, health care, and infrastructure.
  • System Integrity: Tighter rules aim to improve the integrity of work-permit programs, raising income thresholds for certain streams.
  • Long-Term Integration: The government is prioritizing the transition of temporary residents already in Canada into permanent residency.
  • Managed Growth: By planning TR admissions, Canada seeks a more sustainable immigration model, aligning newcomer flows with community capacity.

Implications for Newcomers

For prospective international students and workers, the impact could be significant:

  • Increased Competition: With lower quotas, applying for study permits or work permits may become more competitive.
  • Policy Uncertainty: While targets are set, approval rates and permit conditions may also tighten further, especially in lower-wage job streams.
  • Stronger Pathways to Permanent Residence: The plan emphasizes helping existing temporary residents secure permanent status, meaning in-Canada experience might become even more valuable.
  • Potential Changes to International Student Landscape: Even though student targets remain stable (~305,900), caps have already been introduced, and policy may shift depending on labor market needs.

Long-Term Newcomer Planning: What Canada Is Aiming For

This isn’t just a short-term cut: the 2025–2027 Levels Plan signals a long-term pivot in Canada’s immigration strategy. Rather than prioritizing volume, the focus is now on quality and integration.

  • Reducing Non-Permanent Resident Share: The 5% target by end-2026 shows Canada aims to stabilize and manage its temporary population.
  • Prioritizing Transitions: More than 40% of permanent resident admissions are expected to come from people already in Canada.
  • Regional & Economic Alignment: The Levels Plan also signals support for regional immigration, francophone communities, and sectors where labor shortages persist.

Risks & Challenges

While the strategy is bold, it also comes with risks:

  • Economic Slowdown Risk: Reducing temporary workers could harm industries reliant on foreign labor.
  • Unintended Barriers: Tightening eligibility may disproportionately affect lower-wage workers and students from developing countries.
  • Backlog Pressures: Faster transitions to permanent residence could create bottlenecks in processing applications.
  • Perception & Trust: Restrictive immigration changes may sour Canada’s reputation as a welcoming country for newcomers.

The drop in Canada’s temporary resident targets marks a clear shift from expansion to sustainability. By capping new arrivals and managing the composition of temporary residents, the government is prioritizing long-term integration and preserving public services. While this may bring more predictability and fairness in immigration processes, it also raises the bar for newcomers. Understanding these changes is critical for international students, workers, and anyone planning to come to Canada — because the future of in-migration is no longer just about arrival numbers, but smart, long-term planning.

FAQs

1. Why is Canada Reducing its Temporary Resident Targets?

Canada aims to bring its non-permanent resident share down to 5% of the total population by the end of 2026, easing pressure on housing and public services.

2. Will the Number of International Students be Cut?

No — the plan sets the student arrival target at ~305,900 for 2026, the same as for 2025. However, a cap has already been introduced, making student visas more competitive.

3. What Does This Mean for People Already in Canada on Work or Study Permits?

The government is prioritizing the transition of many temporary residents already in Canada into permanent residence, helping those with an in-Canada experience apply for PR.