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Canada’s upcoming 2025-2027 Immigration Levels Plan marks a major policy shift, with the government planning to include temporary residents such as international students and foreign workers. This change highlights Canada’s evolving approach to managing both temporary and permanent immigration streams to address economic, housing, and social infrastructure pressures.
Temporary Residents Now in Focus
For the first time, Canada will incorporate temporary residents into its immigration targets. This move comes as temporary residents—those on study permits and work permits—have significantly impacted Canada’s labor market, making up 6.2% of the population in 2023. However, the government aims to reduce this figure to 5% by 2027, signaling tighter management of temporary migration.
Cap on Study Permits
One of the most talked-about changes is the cap on study permits, which will directly affect international students. In 2023, the government processed 606,000 study permit applications, but by 2025, this number is expected to drop to 437,000. This cap is part of efforts to ease the strain on housing, healthcare, and other social systems, especially in urban centers like Toronto and Vancouver, where the influx of students has led to overcrowding.
Master’s and PhD students will now face stricter criteria, with priority given to those in high-demand fields. These changes reflect concerns about balancing the country’s ability to support its population and sustain long-term growth.
Changes to Work Permit Programs
In addition to the study permit cap, the government is also making changes to the Post-Graduation Work Permit (PGWP) and Spousal Open Work Permit (SOWP) programs. The number of work permits issued is expected to drop significantly, with the government planning to issue 175,000 fewer PGWPs and 50,000 fewer SOWPs over the next three years.
For spouses of international students, new eligibility requirements will be implemented, limiting work permits to those whose spouses are enrolled in master’s programs that are longer than 16 months or deemed critical to the Canadian economy.
Future Targets for Permanent Residents
Despite the focus on managing temporary residents, Canada is still targeting 500,000 new permanent residents annually by 2025, with a significant portion allocated to skilled workers. This focus on economic immigration aligns with the country’s long-term goals to fill labor shortages while addressing infrastructure and resource availabilityconcerns.
Balancing Economic Growth and Sustainability
The inclusion of temporary residents in the 2025-2027 Immigration Levels Plan is seen as a necessary adjustment to manage the country’s population growth and workforce demands. By introducing a cap on study permits and revising work permit eligibility, the government aims to ensure that Canada can continue to benefit from immigration while maintaining sustainable growth.
These measures are part of a broader effort to balance the influx of immigrants with Canada’s capacity to provide housing, jobs, and social services, ensuring that newcomers can successfully integrate and contribute to the country’s economy in the long term.
Conclusion
Canada’s 2025-2027 Immigration Levels Plan represents a significant shift in immigration policy, with temporary residents now playing a central role. These changes reflect a more measured approach to immigration, ensuring that Canada can continue to grow its workforce and economy without overwhelming its social and physical infrastructure.
This strategy will likely shape immigration discussions in the coming years, particularly around the role of temporary residents and the balance between economic growth and sustainability.