The Canadian federal government has released its 2025 Budget alongside the 2026–2028 Immigration Levels Plan, signaling a strategic shift in immigration policy focused on sustainability, economic growth, and labor market alignment.
Permanent Resident Admissions Stabilized
Canada will maintain its permanent resident admission targets at 380,000 per year through 2028. The share of economic immigrants will increase from 59% to 64%, reflecting a stronger emphasis on skilled labor and workforce development.
Major Reductions in Temporary Resident Admissions
The government plans to significantly reduce temporary resident admissions from a previously projected 516,000 in 2026 to 385,000. This reduction is largely driven by a sharp decline in international student arrivals, with projections dropping from 305,900 to 155,000.
Temporary Worker Breakdown
- Temporary Foreign Workers (TFWP): Decreased from 82,000 to 60,000
- International Mobility Program (IMP): Increased from 128,700 to 170,000
- Total Temporary Workers: Increased to 230,000 in 2026
Provincial Nominee Program Expansion
Canada will expand Provincial Nominee Program (PNP) allocations from 55,000 to 91,500 in 2026, empowering provinces to select immigrants aligned with local labor needs.
New Immigration Pathways and Policy Shifts
Accelerated Pathway for H-1B Visa Holders
To attract top global talent in tech, healthcare, and research, Canada will launch a fast-track immigration pathway for US-based H-1B visa holders. Details are forthcoming.
Permanent Residency for Protected Persons and Workers
Canada will transition up to 33,000 temporary workers to permanent residency in 2026–2027, focusing on individuals with strong community ties and economic contributions.
Compliance Oversight Shift
Responsibility for IMP employer inspections will shift from IRCC to Employment and Social Development Canada (ESDC), likely ending IRCC’s current voluntary disclosure process.
Erickson Insights & Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.