In a significant shift, Canada has announced plans to reduce its immigration target by 20% in 2025. This adjustment reflects a strategic re-evaluation of immigration levels to balance economic needs with housing availability, infrastructure demands, and public services. The decision departs from Canada’s recent record-high immigration targets to ensure sustainable growth while supporting national resources and communities.

Canada Plans 20% Reduction in Immigration Levels for 2025

Key Takeaways:

Canada plans to reduce permanent resident admissions to 395,000 in 2025, focusing more on economic immigration, which will see a smaller decline of 17%.
The Canadian government’s immigration plan has cut Provincial Nominee Program (PNP) admissions targets by approximately 50%, reducing the 2025 target to 55,000 from last year’s 110,000.
The federal government is raising the Federal High Skilled (FHS) immigration targets to 124,680 through Express Entry in 2025.
Work permits under the Temporary Foreign Worker Program (TFWP) will remain at 82,000 annually for the next three years.

Table of Contents:

Permanent resident targets
Scaling back of Provincial Nominee Programs
Increase in federal high-skilled economic immigration
Increase in French speakers settling outside Quebec
Temporary resident levels
2024 cap on study permit applications

Permanent resident targets

In the Immigration Levels Plan released on October 24, the government announced the following adjustments to its permanent resident admission targets for the next three years:

2025: Target reduced to 395,000, down from the 2024 goal of 485,000 and the previous 500,000 target outlined in the 2024-2026 plan.
2026: Target reduced to 380,000, down from the 500,000 initially planned.
2027: Target set at 365,000.

While the overall immigration targets are decreasing, the government is focusing on economic immigration. The economic immigration target for 2025 has seen only a 17% reduction, from 281,000 to 232,000. Additionally, over 40% of economic immigrants are expected to be temporary residents already living in Canada.

Scaling back of Provincial Nominee Programs

This year’s plan has significantly reduced the targets for Provincial Nominee Program (PNP) admissions by nearly 50%:

2025: 55,000, down from the previous targets of 110,000 for 2024 and 120,000 for 2025.
2026: 55,000, reduced from the prior target of 120,000.
2027: 55,000.

This reduction marks a substantial shift in federal immigration policy concerning the PNP.

Increase in federal high-skilled economic immigration

The federal government is allocating a larger share of economic immigration to the Federal High Skilled (FHS) programs, managed through Express Entry.

Despite the significant cuts to PNP targets, the FHS targets have increased:

2025: 124,680, up from last year’s targets of 110,770 for 2024 and 117,500 for 2025.
2026: 123,230, an increase from last year’s 117,500 target.
2027: 118,730.

This year’s FHS targets were calculated by combining the “Federal Economic Priorities” and “In-Canada Focus” categories from the supplementary information, excluding Federal Business. In contrast, last year’s plan presented FHS as a separate category.

Increase in French speakers settling outside Quebec

The federal government will continue its policy of raising targets for French-speaking immigrants settling outside Quebec, aiming to increase their share of overall permanent residence admissions as follows:

2025: 8.5%
2026: 9.5%
2027: 10%

Temporary resident levels

This year’s plan includes, for the first time, specific targets for temporary resident admissions. Following recent adjustments to Canada’s immigration system, the government aims to reduce the share of temporary residents in the population from 7% to 5% by 2026.

A significant reduction in work permits issued through the International Mobility Program (IMP) will drive this decrease, with targets dropping from 285,750 in 2025 to 128,700 in 2026. Work permits under the Temporary Foreign Worker Program (TFWP) will remain at 82,000 annually for the next three years.

The government expects a transition of temporary residents to permanent residents, primarily through Canadian Experience Class (CEC) and Provincial Nominee Programs (PNPs), to contribute to this reduction. Temporary resident levels are projected to fall by about 445,000 in 2025 and 2026, with a slight increase in 2027 due to status expirations and permanent resident admissions

2024 cap on study permit applications

On January 22, IRCC introduced the first-ever cap on international student admissions to address the rising number of foreign nationals on study permits in Canada.

Initially planned as a temporary two-year policy, the cap limited new study permits for undergraduate and college students to 360,000 in 2024. This policy was later made permanent, extending the cap to include master’s and PhD students.

Following this change, IRCC also updated eligibility for Post-Graduation Work Permits (PGWPs). In January, it was announced that starting in September, international students in programs with curriculum-licensing agreements would no longer qualify for a PGWP.

Conclusion:

The recent adjustments to Canada’s immigration and residency policies reflect a recalibrated approach to managing population growth, workforce needs, and economic balance. By reducing permanent and temporary resident targets, prioritizing economic immigration, and placing a cap on international student admissions, the government aims to create a sustainable path forward. These changes, from adjusting the Provincial Nominee Program and Federal High Skilled targets to refining study permit policies, demonstrate a commitment to fostering a skilled, economically active population while supporting community and infrastructure capacity. This recalibration is intended to build a more stable foundation for newcomers and Canadians alike, ensuring that those who come to Canada have ample opportunity to integrate, thrive, and contribute meaningfully to society.