Updated Canada Immigration Levels Plan 2025-2027

The Minister of Immigration, Refugee and Citizenship Canada (IRCC) proposes the Immigration Levels Plan each year and determines the immigration targets for the next three years. 

This time, the plan provides the targets of immigration for permanent residents in 2025, along with the commitments for 2026 and 2027. In addition, for the first time, this plan extends and includes the temporary residents targets. 

Which then considers the full scope for immigrants and newcomers and helps reduce the temporary residents volume by 5% of the total Canadian population by the end of 2026.  

Development of the Canada Immigration Levels Plan:

While developing the levels plan, the IRCC considers the following factors:

• Immigration objectives and priorities, including the immigrants under the Immigration Refugee and Protection Act.
• The country’s economic and regional needs.
• International obligations and commitments.
• The processing capacity.
• The country’s capacity to settle, integrate, and retain newcomers. 

IRCC engages with various partners, including provinces and territories, to help inform them about the new levels plan. They also conducts a thorough survey of public opinions and focus groups with newcomers, Canadians living in rural areas, Francophones living outside Quebec, and Indigenous peoples. 

Permanent Residents Targets:

The updated Canada Immigration Levels Plan for permanent residents will start in 2025. However, the new target for permanent residents results in a pause in population growth for the short term to achieve well-managed, sustainable growth and economic prosperity in the long term.

The permanent resident program includes economic streams, family reunification, refugees and protected immigrants, and humanitarian and compassionate immigrants. 

This plan prioritizes applicants who are already present in Canada— 

• More than 40% of permanent resident admissions in 2025 will be from Canadian temporary residents. 
• The research has demonstrated that immigrants with Canadian experience have favorable long-term success. These skilled and educated newcomers can continue contributing to the country's economy and workforce.    
• The adjustment will be made to the economic immigration streams while transitioning skilled workers to permanent residents and meeting the labour market needs. They emphasize the federal economic priorities in programs, including the Canadian Experience Class and Regional immigration programs, to attract skilled workers in the Healthcare and Trade occupations.  

This plan also focuses on economic immigration and aims to admit approximately 63% of permanent residents in the economic class, such as health and trade sectors, by 2027. 

In addition, it also continues to reunite families, including spouses, children, parents, and grandparents. In 2025, around 24% of overall permanent resident admissions will be allocated to the family class. 

This also endorses the long-standing commitment of Canada to resettle the world’s most vulnerable, like human rights defenders, LGBTQI + refugees, religious and ethnic minorities, children, and women in perilous situations. 

It also strengthens the Francophone community outside Quebec and supports their economic prosperity. From the overall permanent residents target, they will represent:

• 8.5% in 2025.
• 9.5% in 2026.
• 10% in 2027.

Temporary Residents Targets: 

In 2025, Canada will have temporary resident targets, including the number of skilled workers and students arriving in the country. As Canada announced the changes in the temporary resident targets in March 2024, the number of temporary residents is expected to decrease over the next few years as temporary residents are transitioning to permanent residents. 

However, the number of temporary residents will increase by 17,439 in 2027.

Acts to Achieve the 5% Target:

International Student Cap: IRCC introduced an annual cap on an international student study permit for 2025.

Post-Graduation Work Permit Program Reform: IRCC tightened the eligibility requirement for (PGWPP) better to meet the labour market and skilled workers' needs. 

Temporary Foreign Worker Program Reform: The Employment and Social Development of Canada introduced a 10% cap on employers hiring temporary foreign workers under the low-wage stream and announced an increase in the hourly wage for workers in the high-wage stream by 20%. 

Work Permit for Spouses of Temporary Residents: IRCC introduced new changes to the work permit for spouses of temporary residents. 

Impact of the Updated Levels Plan:

The Canada Immigration Levels Plan 2025-2027 is expected to see a population change from 2025 to 2027. It also continued the robust GDP growth and enable the GDP per capita growth to improve housing affordability and decrease the unemployment rate throughout 2025-2027.