2025–2027 Immigration Levels Plan

Background

Each year, the Minister of Immigration, Refugees and Citizenship presents the Immigration Levels Plan, a forward-looking snapshot of Canada’s immigration targets for the next three years. This plan sets targets for permanent resident admissions for 2025 and provides preliminary commitments for 2026 and 2027. For the first time, Canada has expanded the Immigration Levels Plan to include targets for temporary residents, aiming to reduce the number of temporary residents to 5% of Canada’s population by the end of 2026. This comprehensive approach considers the full scope of newcomers and ensures balanced immigration management.

Development of the Immigration Levels Plan

In developing the Immigration Levels Plan, Immigration, Refugees and Citizenship Canada (IRCC) considers the following factors:

• Immigration priorities and objectives, including those outlined in the Immigration and Refugee Protection Act
• Economic and regional needs
• International obligations and commitments
• Processing capacity
• Ability to settle, integrate, and retain newcomers

Throughout the year, IRCC engages with a wide range of stakeholders and partners, including provinces and territories, to inform the plan. IRCC also conducts public opinion research through surveys and focus groups with newcomers, Canadians living in rural areas, Francophone communities outside Quebec, and Indigenous peoples. The findings from these consultations and public engagement activities are published in the Levels Plan Consultation Report.

Permanent Resident Targets

The permanent resident program includes economic class, family reunification, refugees and protected persons, as well as humanitarian and compassionate admissions.This year’s Immigration Levels Plan reduces permanent resident targets starting in 2025, with further reductions projected over the next two years. This temporary pause in population growth aims to achieve long-term sustainability, balanced growth, and economic prosperity.Key highlights of the plan include:

• A reduction of 105,000 admissions compared to the projected 2025 levels.
• A focus on applicants already in Canada and those with prior study or work experience in Canada.

Over 40% of permanent resident admissions in 2025 are expected to come from temporary residents already in Canada.

Research shows that newcomers with Canadian study or work experience have strong long-term success potential. These skilled and educated individuals can support the labor market and economy without placing additional strain on social services.

Adjustments to economic immigration programs will prioritize transitioning temporary workers to permanent residency, aligning with labor market needs and emphasizing a domestic focus. Federal economic priorities, including the Canadian Experience Class and regional immigration programs, will attract workers in high-demand sectors such as healthcare and technology.

• A focus on economic immigration, with approximately 62% of permanent resident admissions allocated to the economic class by 2027, targeting critical sectors like healthcare and technology.
• Continued support for family reunification, with nearly 24% of permanent resident admissions allocated to the family class in 2025, including spouses, children, parents, and grandparents.
• A commitment to resettling the world’s most vulnerable populations, including human rights defenders, LGBTQI+ refugees, religious and ethnic minorities, and women and children in precarious situations.
• Strengthening Francophone communities outside Quebec to support their economic vitality. Francophone immigration will account for:
  • 8.5% of total permanent resident admissions in 2025
  • 9.5% in 2026
  • 10% in 2027

These targets represent an increase from last year’s plan, allowing for continued growth in Francophone immigration outside Quebec despite overall reductions in permanent resident numbers.

Temporary Resident Targets

In March 2024, Canada announced a plan to reduce the number of temporary residents to 5% of the total population over the next three years, including temporary foreign workers and international students. Starting in 2025, Canada will set temporary resident targets to track the number of newly arriving workers and students:

• Student admissions will align with previously announced caps.
• Worker admissions will include those under the International Mobility Program and the Temporary Foreign Worker Program.

Following measures announced in September 2023 to reduce temporary residents, Canada’s temporary population is expected to decline in the coming years as more temporary residents transition to permanent residency or leave Canada compared to new arrivals. Specifically, Canada’s temporary population is projected to:

• Decrease by 445,901 in 2025
• Decrease by 445,662 in 2026
• Experience a modest increase of 17,439 in 2027

Temporary resident targets are calculated by assessing factors such as the number of individuals expected to leave Canada (e.g., upon permit expiration), those transitioning to permanent residency, program approval rates, estimated renewal rates, and other considerations.As a result, the following categories, while not included in temporary resident targets, are factored into the temporary resident population:

• Extensions or status changes for study or work permits (to avoid double-counting individuals).
• Seasonal workers entering and leaving Canada within the same year (as they are not included in year-end population counts).
• Asylum seekers (as they have the legal right to have their claims assessed, making it impossible to control their numbers like other programs).

Measures to Achieve the 5% Target

• International Student Caps: IRCC introduced annual quotas for international study permits, with a 10% reduction in 2025 compared to 2024 targets.
• Post-Graduation Work Permit Program (PGWPP) Reforms: IRCC tightened eligibility requirements for the PGWPP to better align with immigration targets and labor market needs.
• Temporary Foreign Worker Program Reforms: Employment and Social Development Canada introduced a 10% cap on low-wage temporary foreign workers and raised the starting hourly wage for high-wage workers by 20%.
• Restrictions on Spousal Work Permits: IRCC tightened eligibility for work permits for spouses of international students and temporary foreign workers.

Asylum

Like many countries, Canada is experiencing an increase in asylum claims due to the growing number of displaced persons worldwide. To uphold its humanitarian responsibilities, the government is taking several measures to address system integrity and strengthen Canada’s asylum system, including:

• Introducing partial visa requirements for Mexican nationals.
• Improving application processing while maintaining fairness and integrity, as announced in 2024.
• Reviewing visa decision-making processes to ensure officers have the tools to identify fraud and reduce non-genuine visitors.

Impact of the Plan

The 2025–2027 Immigration Levels Plan is expected to result in a slight population decline of 0.2% in 2025 and 2026, followed by a 0.8% increase in 2027.

The plan will reduce the housing supply gap by approximately 670,000 units by the end of 2027.

It will sustain strong GDP growth, accelerate per capita GDP growth from 2025 to 2027, improve housing affordability, and lower unemployment rates.

This comprehensive plan reflects Canada’s commitment to balancing immigration with economic, social, and humanitarian priorities while ensuring long-term sustainability and prosperity.