Canada to Cut Immigration by 20% in 2025 – What Does It Mean for Future Immigrants?

Canada to Cut Immigration by 20% in 2025 – What Does It Mean for Future Immigrants?

Immigration Update: Fewer Immigrants Expected by 2025

The Immigration Levels Plan is the government’s official document outlining its strategy for managing immigration.

It sets annual immigration targets for the upcoming year (2025), as well as provisional targets for the following two years (2026-2027). The targets for the immediate next year are typically set, while those for the subsequent years may be adjusted.

Prime Minister Justin Trudeau announced today, Oct 24, 2024, the following cutbacks in the Permanent Resident admissions target:

Temporary Residents Targets

The government plans to decrease the proportion of temporary residents in Canada from 7% to 5% of the total population by the end of 2026.

Post-Graduation Work Permits (PGWPs) and spousal open work permits

Reduction on Post-Graduation Work Permits (PGWPs) and spousal open work permits were introduced on September 18 by Minister Miller. He projected the following cutbacks over the next three years:

  • 300,000 fewer study permits.

  • 175,000 fewer PGWPs; and

  • 150,000 fewer spousal open work permits.

Key Highlights of the Immigration Levels Plan

  • 2025: 395,000 permanent residents (down from 485,000 in 2024)

  • 2026: 380,000 permanent residents (previously set at 500,000)

  • 2027: 365,000 permanent residents (down from 500,000)

While the government is scaling back overall numbers, the plan focuses on economic immigration, with a 15% reduction. Importantly, 40% of economic immigrants are expected to come from within Canada. French-speaking immigrants outside Quebec are set to see an increase in their quota, rising to 8.5% in 2025, reaching 10% by 2027.

This move comes after a wave of changes throughout 2024, including caps on study permits, reforms to the Post-Graduation Work Permit (PGWP), and temporary foreign worker regulations. Temporary resident numbers are also being reduced as part of this new plan, with the government aiming to lower the proportion of temporary residents from 7% to 5% by 2026.

What Does This Mean for Future Immigrants to Canada?

Increased Competition for Permanent Residency (PR) Spots:
With a reduction in the number of PR admissions, potential immigrants will face higher competition, especially for key programs like Express Entry and Provincial Nominee Programs (PNPs). It will become even more important for applicants to ensure their profiles are as strong as possible.

Opportunities for French Speakers:
The increase in French-speaking immigration targets outside of Quebec means that Francophone immigrants will have better chances of securing PR. This may be an excellent time for French-speaking individuals to explore immigration pathways to Canada.

Economic Immigration Still a Priority:
Even with the cut in overall immigration numbers, the focus remains on economic immigration, which indicates that Canada still values skilled workers. Applicants with high-demand skills may have an advantage, but the bar is likely to be higher, and it’s crucial to meet or exceed eligibility criteria.

Tightened Rules for Temporary Residents:
The government is also capping temporary resident numbers, including international students and temporary foreign workers. In particular, students will see caps on study permits, and certain restrictions have been added to the PGWP eligibility criteria. This may make it harder for international students to remain in Canada after graduation, emphasizing the need for careful planning before arriving in Canada.

Changes to Temporary Foreign Worker Program (TFWP):
The government has been critical of how certain Canadian businesses have used the Temporary Foreign Worker Program (TFWP), leading to reforms and even suspensions in some regions. Temporary workers should keep an eye on the program’s changes, especially those in regions with high unemployment rates.

Conclusion

The recent cuts in immigration targets indicate a shift towards a more controlled and selective immigration system. Future immigrants will need to adapt to these changes by strengthening their profiles, focusing on high-demand skills, and staying informed about new developments. If you’re considering immigrating to Canada, now is the time to prepare by improving your qualifications, language skills, and understanding of the evolving immigration pathways.

If you are a skilled worker, a French-speaking immigrant, or someone already in Canada on a temporary permit, these changes could impact your journey to permanent residency. The message is clear: preparation and strategy are more important than ever.

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