Canada’s Immigration: The 2025–2027 Immigration Levels Plan, announced by Immigration, Refugees and Citizenship Canada (IRCC), offers a detailed outline of Canada’s immigration targets for the coming years. This forward-looking strategy marks a pivotal shift in Canada’s approach to immigration, incorporating new targets not only for permanent residents but also for temporary residents. The goal is to achieve sustainable growth while addressing the country’s evolving economic, regional, and social needs.
Key Developments in the Plan
The 2025–2027 plan outlines specific targets for permanent resident admissions, with a forecast for 2026 and 2027. For the first time, the plan also includes temporary resident targets, reflecting a holistic approach to immigration management. This strategy is designed to reduce the number of temporary residents to 5% of Canada’s total population by 2026, aligning with long-term economic and demographic objectives.
Development Process
The creation of the Immigration Levels Plan is a collaborative process. IRCC considers several factors, including:
- Economic and regional needs: The plan aligns with Canada’s priorities for economic growth and supports regional development.
- International commitments: Canada’s international obligations and its role in global humanitarian efforts are also factored in.
- Processing capacity: The ability to process applications and integrate newcomers into Canadian society is an essential consideration.
- Settlement and retention: The plan emphasizes the importance of supporting newcomers to settle, integrate, and thrive in their new environment.
Extensive consultations with provinces, territories, and stakeholders have informed the plan, ensuring it reflects the needs of both newcomers and existing residents. Research and feedback from a diverse range of groups, including Francophones outside Quebec, rural Canadians, and Indigenous Peoples, have played a significant role in shaping the plan’s targets.
Permanent Resident Targets
Permanent resident admissions are divided into four main categories: economic streams, family reunification, refugees and protected persons, and humanitarian admissions. In 2025, the plan foresees a reduction in permanent resident targets, representing a 105,000 decrease compared to previous projections.
Despite this reduction, more than 40% of the anticipated admissions in 2025 will be for those already in Canada as temporary residents. This focus on in-Canada applicants aims to support the successful integration of skilled and educated individuals who have already contributed to the workforce and economy. Research has shown that these individuals tend to experience better long-term success in Canada, which in turn helps reduce the burden on social services.
The plan gives particular attention to the economic class, with an emphasis on attracting skilled workers in high-demand sectors such as health care and trades. Approximately 62% of total permanent resident admissions by 2027 will be dedicated to the economic class. Additionally, 24% of admissions will be allocated to family reunification, ensuring that spouses, children, parents, and grandparents can join their loved ones in Canada.
A continued commitment to resettling vulnerable individuals is also a cornerstone of the plan. This includes refugees and those in precarious situations, such as human rights defenders, LGBTQI+ refugees, and ethnic and religious minorities. Moreover, the plan aims to strengthen the prosperity of Francophone communities outside Quebec, with Francophone immigration expected to reach 8.5% of permanent resident admissions in 2025 and increase year-over-year through 2027.
Temporary Resident Targets
In addition to the changes in permanent resident admissions, the 2025–2027 Immigration Levels Plan introduces new targets for temporary residents. These include international students and temporary foreign workers, with a particular focus on reducing the number of temporary residents in Canada. By 2027, temporary residents will represent just 5% of Canada’s total population.
To achieve this goal, Canada will introduce several measures, including:
- International Student Cap: The number of international students will be capped, with a further 10% reduction in 2025 compared to 2024 targets.
- Post-Graduation Work Permit Program (PGWPP) Reform: The eligibility requirements for the PGWPP will be tightened to better align the program with Canada’s immigration goals and labor market needs.
- Temporary Foreign Worker Program (TFWP) Reform: A 10% cap will be introduced on employers hiring temporary foreign workers under the low-wage stream, with a 20% increase to the starting wage for high-wage workers.
- Limiting Work Permits for Spouses: Work permits for spouses of temporary residents will be more strictly regulated to limit the number of permits issued.
These reforms aim to align Canada’s immigration system with its broader labor market needs, ensuring that temporary residents transition to permanent residency where possible and that new arrivals are more closely tied to the country’s economic objectives.
Asylum and Humanitarian Considerations
Canada continues to prioritize its commitment to resettling displaced people and providing asylum to those in need. The 2025–2027 Immigration Levels Plan acknowledges the increasing number of asylum claims, with global displacement continuing to rise. In response, Canada is implementing several measures to strengthen its asylum system, including:
- Visa requirements: Partial visa requirements for certain nationals, such as Mexican nationals, will be introduced to improve the integrity of the asylum system.
- Improved Claims Processing: Efforts to streamline asylum claims processing while maintaining fairness and integrity will be a key focus.
- Fraud Prevention: Strengthening visa decision-making tools to detect and prevent fraudulent claims will be an ongoing priority.
Impact of the Plan
The 2025–2027 Immigration Levels Plan is expected to have a significant impact on Canada’s economy, population growth, and housing market:
- Population Growth: While a slight population decline of 0.2% is expected in 2025 and 2026, the plan forecasts a return to growth by 2027, with an increase of 0.8%.
- Housing Supply: The plan will contribute to reducing the housing supply gap by approximately 670,000 units by 2027, addressing one of Canada’s most pressing challenges.
- Economic Growth: The plan is designed to support robust GDP growth, with GDP per capita expected to accelerate throughout the period. This, in turn, will improve housing affordability and help lower the unemployment rate.
Conclusion
The 2025–2027 Immigration Levels Plan represents a strategic approach to balancing Canada’s need for immigration with the country’s capacity to integrate newcomers effectively. By focusing on economic priorities, family reunification, and the resettlement of vulnerable individuals, Canada is positioning itself for sustainable growth and prosperity. At the same time, the plan’s focus on reducing the number of temporary residents reflects the government’s commitment to ensuring that immigration remains an asset to the economy and society. With these measures, Canada is prepared to continue being a welcoming destination for those seeking to build a better life while managing the challenges of rapid population growth.