According to Budget 2025, Canada will launch a new program that will help up to 33,000 work permit holders transition to permanent residency between 2026 and 2027. This major update will be part of the Immigration Levels Plan 2026–2028.
Key Highlights of the Upcoming Plan
- The temporary resident admissions target for 2026 will be set at 385,000, a 43% reduction from 673,650 in 2025.
- International student admissions will also see a sharp cut, dropping to 155,000 in 2026 from 305,900 in 2025 a 49% decrease.
- The temporary foreign worker target will be 230,000, down 37% from 2025’s 367,750, but still higher than the 210,700 target set for 2026 in last year’s plan.
- Eligible Protected Persons in Canada will also be granted permanent residence over the next two years.
The permanent residence target for 2026 remains unchanged at 380,000, with 64% of admissions allocated to economic immigration, an increase from 59% in the previous plan.
For 2027, the federal government has set a notional target of 380,000 permanent residents, up from last year’s 2027 projection of 365,000. The plan will also consider the specific needs of rural and remote communities and industries impacted by tariffs.
Budget and Government Context
The 2025 Federal Budget, tabled by Prime Minister Mark Carney’s Liberal government on November 4, 2025, outlines these priorities. More detailed information about the plan will be available when the 2025 Annual Report to Parliament on Immigration is released.
Reduction in Temporary Resident Targets
Although the government has lowered its targets for temporary residents, this may not immediately affect the actual number of arrivals. In 2025, admissions have already fallen short of set goals between January and August 2025, Canada admitted only 154,515 temporary foreign workers (42% of the target) and 89,430 international students (29% of the target).
Changes Expected in the Temporary Foreign Worker Program
Prime Minister Carney has hinted at major reforms in the Temporary Foreign Worker Program (TFWP). The program will be reshaped to focus on strategic sectors and regional needs. However, Budget 2025 does not specify the breakdown of worker admissions between the TFWP and the International Mobility Program (IMP).
Historically, the IMP has issued the majority of work permits in Canada. In 2025, the targets were 285,750 for IMP and 82,000 for TFWP. For 2026, both categories will have to increase slightly to meet the combined target of 230,000, up from 210,700 in last year’s plan.
Permanent Residence Admissions Overview
The permanent resident admissions target for 2026 remains stable at 380,000, but category allocations will shift slightly:
- Economic Immigration: 239,800 (up from 229,750)
- Family Reunification: 84,000 (down from 88,000)
- Refugees and Humanitarian Cases: 56,200 (down from 62,250)
This shows a stronger emphasis on economic immigration and a moderate reduction in family and humanitarian streams.
About the Immigration Levels Plan
The Immigration Levels Plan outlines Canada’s yearly admission targets for both temporary and permanent residents over a three-year period. Targets for the first year are firm, while those for the following two years are provisional.
Last year’s plan was the first to include temporary resident targets, marking a major policy shift. It also reduced permanent resident targets by 20% compared to the 2024–2026 plan.
Under the new plan, the top-level targets for the upcoming years are:
- 2027: 380,000 permanent residents
- 2028: 380,000 permanent residents
For temporary residents, 2027 and 2028 will each have 370,000 admissions, including 220,000 foreign workers and 150,000 international students. This marks a substantial decrease from last year’s projected totals, mainly due to the lower targets for international student admissions.
