Canada Will Cut Immigration Visas by More Than 20%: What Does It Mean for International Students and Foreign Workers?

Every year, IRCC (Immigration, Refugees and Citizenship Canada) publishes forward-looking immigration targets for the next three years, along with a plan to reach them step by step. The main considerations are the priorities in the Immigration and Refugee Protection Act, economic and regional needs, international obligations and commitments, the processing capacity of the responsible agencies, and the capacity to settle newcomers. On October 24 this year, IRCC released the 2025–2027 Immigration Levels Plan, which aims to make sure the country’s population growth leads to stable social and economic development.

This year’s plan covers both permanent and temporary residents, and it carries forward the 2024 goal of reducing temporary residents to 5% of Canada’s total population by the end of 2026. Below are the plan’s target adjustments for permanent and temporary residents:

1. Permanent resident targets

The plan covers economic immigration, family reunification, refugees, humanitarian cases and more. Unlike previous years, IRCC announced that permanent resident admissions will drop by 105,000 in 2025, with further decreases planned for 2026 and 2027, to slow rapid short-term population growth. The main points:

1. Economic immigration: By 2027, 62% of permanent resident spots are expected to go to economic immigrants, especially in healthcare and trades, to fill critical labor shortages. Among the many applicants, IRCC will also prioritize people who already have work experience in Canada.

2. Family reunification: About 24% of spots are expected to be reserved for applicants seeking family reunification, covering close relatives such as spouses, children, parents and grandparents.

3. Support for vulnerable groups: Canada will keep its commitments to vulnerable groups such as refugees and LGBTQI+ people, providing resettlement and care.

4. Francophone communities: Canada will keep supporting the economic prosperity of Francophone communities outside Quebec, aiming to raise the share of French-speaking residents from 8.5% to 10% between 2025 and 2027.

2. Temporary resident targets

The Canadian government has placed more restrictions on temporary residents such as international students and foreign workers. Along with these policy changes, as more temporary residents become permanent residents or leave Canada, the number of temporary residents over the next 3 years is expected to:

• Decrease by 445,901 in 2025

• Decrease by 445,662 in 2026

• Possibly increase slightly, by 17,439, in 2027

To continue the goal set in March 2024, restrictions now apply to international students, temporary workers and the spouses of temporary residents:

1. Cap on international students: IRCC plans an annual cap on international study permits, cutting them by a further 10% in 2025 compared with the 2024 target.

2. Post-graduation work permit eligibility: Eligibility for the PGWPP (Post-Graduation Work Permit Program) is stricter.

3. Changes to the Temporary Foreign Worker Program: ESDC (Employment and Social Development Canada) has capped employers’ hiring of low-wage temporary foreign workers at 10%, and announced a 20% increase in the starting wage threshold for high-wage temporary foreign workers.

4. Work permit limits for spouses of temporary residents: IRCC has tightened the work permit requirements for spouses of international students and temporary foreign workers.

All this shows the Canadian government is actively using immigration reform to strengthen the country’s economic foundation. In the long run, these measures may help raise GDP and give people better-quality services. In the short term, though, they will undoubtedly affect study and job opportunities for international students and foreign workers. How much they affect any one person may take more time to see.

References:

https://www.canada.ca/en/immigration-refugees-citizenship/news/2024/10/20252027-immigration-levels-plan.html