Canada is set to open a new pathway to permanent residency for thousands of temporary workers, as part of its 2026–2028 Immigration Levels Plan. The initiative, unveiled in Budget 2025 by Prime Minister Mark Carney’s administration, will allow up to 33,000 individuals holding work permits to transition to permanent resident status between 2026 and 2027.
A Shift Toward Long-Term Immigration Stability
The newly announced framework signals a strategic pivot in Canada’s immigration policy, emphasizing long-term integration over short-term admissions. While the overall permanent residency target for 2026 remains steady at 380,000, the composition of that intake is changing. A larger share — 64% — will be allocated to economic immigration streams such as skilled workers and provincial nominees, up from 59% in the previous plan.
Major Reductions in Temporary Admissions
Canada is also scaling back its temporary immigration programs. The temporary resident target for 2026 has been cut to 385,000, a sharp drop from 673,650 in 2025. Similarly, international student permits will be reduced to 155,000, nearly halving the current year’s figure of 305,900. The Temporary Foreign Worker Program (TFWP) will see its intake lowered to 230,000, down from 367,750, though slightly above the 2024 target of 210,700.
Focused Support for Vulnerable Groups and Regions
In addition to economic migrants, the plan includes provisions for Protected Persons — individuals already residing in Canada who will be granted permanent residency over the next two years. The government also aims to tailor immigration efforts to industries impacted by tariffs and to address labour shortages in rural and remote communities, suggesting a more targeted and responsive approach.
Rationale Behind the Policy Shift
According to Prime Minister Carney, the changes are designed to build a more sustainable immigration system. He emphasized that the TFWP should prioritize sectors and regions with the most pressing labour needs, rather than maintaining broad intake levels. This recalibration comes amid underwhelming arrival figures: between January and August 2025, Canada admitted just 154,515 temporary foreign workers — 42% of the annual target — and 89,430 international students, only 29% of the goal.
Further details are expected in the 2025 Annual Report to Parliament on Immigration, which will provide deeper insight into the government’s evolving strategy.
A New Chapter in Canada’s Immigration Policy
The 2026–2028 plan marks a significant departure from previous years, shifting the focus from temporary admissions to stable, long-term residency pathways for those already contributing to the Canadian economy. It reflects a broader effort to align immigration with labour market realities and regional needs — while maintaining Canada’s commitment to welcoming skilled talent from around the world.
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