Canada to Reduce Immigration by 20% in 2025: A Shift in Policy
The Canadian government has recently announced a significant change in its immigration policy, cutting permanent resident admissions targets by 20% for 2025. This marks a notable shift from previous targets, as the government aims to lower the number of immigrants entering the country in the coming years. The Immigration Levels Plan, released on October 24, outlines these new targets and their distribution across various immigration categories.
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Lower Immigration Targets for 2025
According to the latest Immigration Levels Plan, Canada has set a target of admitting 395,000 permanent residents in 2025. This is a marked decrease from the earlier goal of 485,000 set for 2024, and from the previously announced target of 500,000 in the 2024-2026 Immigration Levels Plan. The reduction continues into 2026, with a target of 380,000, down from the earlier projection of 500,000. By 2027, the target is set to decrease further to 365,000.
This reduction in immigration targets is a significant change for Canada, which has traditionally been seen as a destination for newcomers seeking permanent residency. However, despite the overall reduction, the government is putting more emphasis on economic immigration, ensuring that a substantial portion of incoming permanent residents will contribute to the country’s workforce and economic growth.
Focus on Economic Immigration
While overall immigration numbers are being scaled back, economic immigration continues to be a priority for Canada. In 2025, the government has set a target of 232,000 economic immigrants, down 17% from the previous year’s target of 281,000. Notably, a significant number of these economic immigrants—over 40%—are expected to come from temporary residents who are already living in Canada. This group includes international students, temporary foreign workers, and others who have been contributing to the Canadian economy.
Canada's shift towards economic immigration is in line with its goal of addressing labor shortages and filling critical gaps in the workforce. The government recognizes the importance of skilled immigrants in sectors such as technology, healthcare, and engineering, which are vital for the country’s future prosperity.
Reduction in Provincial Nominee Program (PNP) Targets
One of the most striking changes in the new immigration plan is the substantial reduction in Provincial Nominee Program (PNP) targets. In 2025, PNP admissions are set at just 55,000, a significant decrease from the 110,000 target set for 2024. This 50% reduction continues into 2026 and 2027, with PNP targets remaining at 55,000 each year.
The PNP allows provinces and territories to nominate individuals for permanent residence based on their skills, education, and work experience. This program has been a vital tool for provinces to address specific labor market needs, and the reduction in its targets may have a considerable impact on smaller regions that rely on this program to boost their workforce.
Increase in Federal High Skilled Immigration
While the PNP targets have been slashed, the federal government is increasing its focus on high-skilled economic immigration through the Federal High Skilled (FHS) programs, managed via the Express Entry system. These programs include categories such as the Federal Skilled Worker Program, the Canadian Experience Class, and the Federal Skilled Trades Program.
In 2025, FHS targets will rise to 124,680, up from 110,770 in 2024. This upward trend continues through 2026, with a target of 123,230, and by 2027, it will reach 118,730. The increased focus on FHS programs aligns with Canada's strategy to attract highly skilled professionals who can meet the needs of its evolving economy.
Breakdown of Permanent Resident Admissions
In addition to economic immigration, the government’s plan also covers other categories of permanent resident admissions, such as family reunification and humanitarian immigration. Family reunification targets are set at 94,500 for 2025, gradually decreasing to 88,000 in 2026 and 81,000 in 2027.
The humanitarian category, which includes refugees and protected persons, will also see a decline in targets over the next few years. In 2025, the government aims to admit 68,350 individuals under this category, with targets falling to 62,250 in 2026 and 58,650 in 2027.
Canada’s decision to cut overall immigration targets while increasing the focus on economic immigration reflects the government's intent to be more selective about who enters the country. By prioritizing skilled workers and those who are already contributing to the Canadian economy, the government aims to address labor shortages and support economic growth.
The reduction in PNP targets, however, may raise concerns in certain provinces that rely heavily on immigration to sustain their economies. As the country moves forward with these new immigration targets, the balance between economic growth and population management will continue to be a topic of significant discussion.
