Canada Aims to Reduce Temporary Resident Levels in 2025: A New Approach
Canada's immigration system is undergoing significant changes, with the government introducing new targets for temporary residents as part of its broader Immigration Levels Plan. Released on October 24, this year’s plan includes, for the first time, specific goals for the number of temporary residents, such as individuals on work or study permits, who will be admitted into the country over the next three years.
These changes reflect the government's intent to manage the country's population more effectively by reducing the percentage of temporary residents in Canada from 7% to 5% by the end of 2026.
New Targets for Temporary Residents
Temporary residents play an important role in Canada's economy, filling essential gaps in the workforce and contributing to the country’s education system. However, the government is now planning to scale back their numbers as part of a broader effort to control immigration levels. The Immigration Levels Plan for 2025 outlines a target of 673,650 temporary residents, with a range between 604,900 and 742,400.
By 2026, the target drops significantly to 516,600, with a range from 435,250 to 597,950. This trend continues into 2027, with an expected target of 543,600 temporary residents. These targets represent a substantial decrease from previous years, signaling a shift in Canada’s approach to managing temporary residents.
Reduction in Work Permits
A major factor contributing to this reduction is a significant decrease in the number of work permits issued under the International Mobility Program (IMP). For 2025, the government plans to issue 285,750 work permits under the IMP. However, in 2026, this number will drop sharply to just 128,700. This dramatic cut reflects the government’s goal to reduce the number of temporary workers in Canada, especially those who come through programs like the IMP, which allows foreign workers to enter Canada without requiring a labor market impact assessment.
In contrast, the number of work permits issued through the Temporary Foreign Worker Program (TFWP) will remain stable at 82,000 per year for the next three years. The TFWP allows employers to hire foreign workers to fill labor shortages in specific industries. Since this program is directly tied to Canada’s labor market needs, the government has chosen to maintain consistent levels of permits issued through this program.
Stable Numbers for International Students
While the number of temporary workers will be reduced, the government has decided to maintain stable targets for international students. Over the next three years, Canada plans to admit 305,900 students annually. This decision reflects the importance of international students to Canada's education sector and economy. Many international students contribute significantly through tuition fees, and many also transition to permanent residency after completing their studies.
Despite the reduction in other categories of temporary residents, the steady flow of international students shows Canada’s ongoing commitment to attracting global talent and fostering education-based immigration. These students often go on to contribute to the Canadian economy by working and staying in the country after graduation.
Impact on Transition to Permanent Residency
One of the government’s key objectives with these changes is to encourage more temporary residents to transition to permanent residency. Programs such as the Canadian Experience Class (CEC), which is part of Express Entry, and the Provincial Nominee Program (PNP) are designed to help temporary residents, particularly those who have already been contributing to the workforce, become permanent residents.
The government expects that by reducing the number of new temporary residents entering the country and encouraging more transitions to permanent residency, it can bring the percentage of temporary residents down from 7% to 5% of Canada’s population by 2026. This shift is seen as a way to ensure that those who come to Canada on temporary permits have a clearer path to permanent residency and are better integrated into the economy and society.
Balancing the Workforce and Population Management
Canada’s decision to cut back on temporary resident levels is part of a broader strategy to manage both the country’s population and its labor force more effectively. While temporary residents, particularly workers and students, have played a critical role in Canada’s economic growth, the government now seeks to balance this with the long-term goal of permanent residency. By reducing temporary permits and focusing on transitions to permanent status, Canada is aiming to create a more sustainable immigration system.
The government’s plan to reduce temporary resident levels marks a major shift in Canada’s immigration policy. By cutting the number of temporary workers and focusing more on transitioning those already in the country to permanent residency, the government is aiming to manage population growth while addressing labor shortages in critical sectors.
Although the reduction in work permits through the International Mobility Program is significant, the stable targets for international students show that Canada continues to value education as a pathway to skilled immigration. As the country moves forward with these new targets, the focus on sustainability and economic integration will likely shape its immigration policy for years to come.
