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.
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.
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.
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).
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.
The permanent resident admissions target for 2026 remains stable at 380,000, but category allocations will shift slightly:
This shows a stronger emphasis on economic immigration and a moderate reduction in family and humanitarian streams.
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:
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.
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