Canada to Cut Immigration by 20% in 2025 – But Increases Focus on Skilled Workers

The Canadian government recently released updated immigration targets for the next three years, signaling a shift in priorities. Permanent resident (PR) admissions are now set to reduce gradually, with 395,000 new immigrants in 2025decreasing to 380,000 in 2026 and 365,000 by 2027. This plan lowers the annual intake by around 20% compared to previous goals, aiming to manage population growth sustainably.

Focus on Economic Immigration

Despite an overall reduction, Canada is increasing the percentage of economic immigrants within its total PR admissions. Economic immigration targets have been cut less drastically (from 281,000 to 232,000 for 2025) and remain significant. Canada aims to attract high-skilled talent through programs like the Canadian Experience Class (CEC) and Express Entry, with nearly 40% of applicants expected to transition from temporary residency.

Changes in Provincial Nominee Programs (PNP)

The new immigration plan significantly impacts Provincial Nominee Programs (PNPs), which previously aimed to bring in 110,000 individuals in 2024. Now, PNP targets are halved to 55,000 annually for the next three years. This change indicates a shift in focus from provincial discretion to federal high-skilled programs to meet the country’s labor needs.

Temporary Resident Levels: A Strategic Adjustment

For the first time, Canada is also limiting temporary resident levels to manage population density. Temporary residents are expected to decline from 7% to 5% of the population by 2026, with targets for student and worker admissions regulated to meet these goals. Notably, work permits issued through the International Mobility Program (IMP) will drop significantly, reducing stress on housing and public services.

Addressing Economic Needs and Long-term Growth

Prime Minister Justin Trudeau and Immigration Minister Marc Miller have both emphasized the importance of these changes in ensuring Canada remains economically competitive while addressing infrastructure limitations. The government’s focus on balancing skilled immigration with sustainable growth shows a commitment to both economic vitality and societal well-being.



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