Canada’s new Immigration Levels Plan for 2026–2028 will introduce sweeping changes aimed at balancing economic growth with sustainable population management. The plan, announced through Budget 2025 and set to be tabled in Parliament soon, outlines new strategies to transition up to 33,000 temporary residents, including work permit holders, into permanent residents (PR) over the next two years.
Expanding PR Opportunities for Temporary Residents
At the heart of the Immigration Levels Plan lies a major policy shift: expanding permanent residence opportunities for qualified temporary residents. According to federal projections, nearly 33,000 workers currently holding temporary work permits will be granted pathways to PR between 2026 and 2027.
The initiative aims to retain skilled labor already contributing to the Canadian economy. By transitioning eligible temporary residents into permanent residents, Canada seeks to address workforce shortages in key industries such as construction, healthcare, and agriculture.
Prime Minister Mark Carney’s Liberal government has emphasized that this measure will strengthen Canada’s long-term labor force strategy while reducing overreliance on short-term foreign labor. The government’s objective is clear: ensure that Canada remains competitive while maintaining manageable population growth.
Immigration Levels Plan 2026–2028: A Shift in Focus
The Immigration Levels Plan marks a significant recalibration of Canada’s approach to population and labor management. Under the new plan, the federal government will reduce the temporary resident admissions target for 2026 to 385,000, down sharply from 673,650 in 2025.
International student admissions will also decline substantially, with a 2026 target of 155,000, compared to 305,900 this year. Meanwhile, Temporary Foreign Worker Program (TFWP) admissions will be capped at 230,000, representing a drop from 2025’s 367,750 target but still higher than last year’s projection of 210,700.
While temporary resident admissions are being scaled down, the permanent residence target for 2026 remains steady at 380,000. This signals that the government is prioritizing long-term settlement over temporary entry.
Economic Immigration Takes the Lead
A major highlight of the new Immigration Levels Plan is the government’s decision to allocate 64 percent of all PR admissions to economic immigration programs. This is an increase from the 59 percent allocation in the previous plan, underscoring a continued commitment to attract and retain skilled workers.
Economic immigration streams include the Express Entry system, the Provincial Nominee Program (PNP), and new pilot initiatives for rural and northern communities. By increasing the share of PRs admitted through these routes, Canada aims to strengthen its labor supply and support regions facing demographic decline.
Carney emphasized that future immigration policies will “consider industries and sectors impacted by tariffs and the unique needs of rural and remote communities.” This regional focus reflects Ottawa’s intent to distribute economic benefits across provinces rather than concentrating new arrivals in major cities.
The Numbers Behind the Policy
Although the total targets for temporary residents are falling, 2025 data shows that actual admissions have already been well below projections. Between January and August 2025, only 154,515 temporary foreign workers entered Canada. Similarly, international student admissions reached 89,430, only 29 percent of the goal.
These shortfalls suggest that the federal government’s new plan may not drastically reduce real intake numbers compared to recent trends. Instead, the Immigration Levels Plan appears to formalize a more realistic, sustainable admission framework that aligns with current economic and social capacities.
Tightening the Temporary Foreign Worker Program
Prime Minister Carney and Immigration Minister Sean Fraser have repeatedly indicated that reforms to the Temporary Foreign Worker Program are imminent. Speaking to Liberal MPs in Edmonton on September 10, 2025, Carney stated that the TFWP “must have a focused approach that targets specific, strategic sectors and needs in specific regions.”
These upcoming changes are expected to make the program more efficient and responsive to labor market realities. The plan will prioritize industries vital to Canada’s competitiveness while discouraging overuse of temporary labor in sectors where permanent workers are available domestically.
Carney also highlighted that Canada’s immigration system must remain agile, adapting to the demands of a modern economy while safeguarding fair employment conditions for all workers.
Balancing Growth and Sustainability
The Immigration Levels Plan 2026–2028 demonstrates a clear attempt to find equilibrium between population growth and sustainable resource management. After years of record-breaking immigration levels, the federal government now faces mounting pressure from provinces and citizens concerned about housing affordability, healthcare access, and infrastructure strain.
Reducing temporary resident targets, while maintaining high PR quotas, reflects Ottawa’s attempt to stabilize short-term population surges without undermining long-term economic goals. It also signals recognition that too many temporary residents can distort labor markets and increase housing demand.
Economists have noted that this recalibration could ease some pressure on the housing market while helping the government better plan infrastructure and social services.
Pathways for Protected Persons and Vulnerable Groups
In addition to economic immigrants, the plan confirms that Canada will grant permanent resident status to eligible Protected Persons currently residing in the country. These individuals, often refugees or asylum seekers, will benefit from streamlined application procedures over the next two years.
The inclusion of Protected Persons within the PR target reflects Canada’s humanitarian commitments under international law. It also shows the government’s intention to integrate vulnerable populations into the national workforce rather than leaving them in prolonged uncertainty.
A Political Balancing Act
The new Immigration Levels Plan comes at a politically sensitive moment. With housing prices still high and healthcare systems under strain, opposition parties have called for reduced immigration numbers. Meanwhile, business groups and provincial governments warn that cutting temporary resident inflows could worsen labor shortages in critical industries.
Carney’s Liberal minority government faces the challenge of balancing these competing demands. The decision to maintain high PR targets while lowering temporary admissions appears designed to appease both sides. This ensures Canada continues to attract skilled newcomers while slowing rapid, short-term population growth.
Political analysts suggest that this approach could help the government reframe immigration as a sustainable tool for nation-building rather than a short-term economic fix.
Looking Ahead: The Road to Implementation
The federal government will release full details when the Minister of Immigration tables the 2025 Annual Report to Parliament on Immigration. This report will outline province-by-province allocations, processing timelines, and new pilot programs designed to enhance PR transitions for temporary residents.
Officials have hinted that the government may introduce sector-based permanent residence programs, allowing employers in high-demand industries to directly sponsor workers for PR. Rural regions could also receive tailored immigration streams to address chronic population decline.
As Canada refines its immigration priorities, the 2026–2028 Immigration Levels Plan stands as one of the most consequential shifts in recent memory. It aligns immigration with labor market realities while reinforcing Canada’s global reputation as a country of opportunity and stability.
Conclusion: A New Era for Canadian Immigration
Canada’s Immigration Levels Plan 2026–2028 marks a turning point in national policy. By granting PR to more temporary residents and tightening temporary admissions, Ottawa aims to secure long-term economic growth while addressing public concerns over capacity and affordability.
The plan’s focus on economic immigration, temporary residents, and PR pathways signals a clear direction: Canada wants to attract the best talent, keep them permanently, and ensure communities across the country benefit from their contributions.
Further details will emerge when Parliament debates the Annual Immigration Report, but the framework is set. Canada is preparing for a future where immigration remains strong, strategic, and sustainable.
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