Canada’s Immigration Shake-Up: Fewer Student Visas, More Focus on Economic Newcomers
Canada has unveiled its 2026-2028 immigration levels plan, marking one of the most significant shifts in federal immigration policy in recent years. The plan maintains high overall permanent resident targets but dramatically cuts the number of temporary residents—especially international students.
Student Visa Intake Cut in Half
One of the largest policy changes is a 50% reduction in approved study permits beginning in 2026.
- 2025 planned student visas: ~306,000
- 2026 revised target: 155,000
- 2027 & 2028: ~150,000 per year
This move comes as universities and colleges across Canada face major budget pressures, having become financially dependent on international student tuition—often four to five times higher than domestic rates.
Slight Increase for Temporary Workers
The government is also scaling down the number of temporary foreign workers allowed into Canada:
Year | Temporary Workers Admitted |
2025 | ~368,000 |
2026 | 230,000 (previous target was 210,000) |
The government has not specified how many spots will go to:
- International Mobility Program (IMP) – LMIA-exempt, specialized talent
- Temporary Foreign Worker Program (TFWP) – requires employers to prove no Canadian worker was available
Past allocations have favoured the IMP, but the new plan leaves details unclear.
The stated goal is to reduce temporary residents to under 5% of Canada’s population by end of 2027.
Priority Shift to Economic Permanent Residents
While temporary pathways are being restricted, permanent immigration totals remain high—an average of 380,000 new PRs per year from 2026 to 2028.
Most of those spots will go to economic applicants:
Year | Economic PR Target |
2026 | ~240,000 |
2027 | ~245,000 |
2028 | ~245,000 |
This is an increase of roughly 10,000 from the earlier 2026 projection.
The plan also includes an “accelerated pathway” for 33,000 existing work permit holders to transition to PR over the next two years—on top of the main economic stream numbers.
$1.7B Talent Recruitment Strategy
The budget outlines a $1.7-billion initiative focused on attracting more than 1,000 high-level researchers to Canadian universities in:
- Engineering
- Natural sciences
- Humanities
- Health and life sciences
This signals that while mass international student intake is being scaled back, high-value academic talent recruitment remains a priority.
Cuts to Family, Refugee & Humanitarian Categories
Other streams will see reductions in 2026:
Category | Previous Plan | New Plan |
Family reunification | 88,000 | 84,000 |
Refugees & humanitarian | 62,250 | 54,300 |
The plan does not break down allocations by immigration stream (e.g., Express Entry vs PNP), which is a departure from previous years.
One-Time PR Program for Protected Persons
A temporary measure will grant permanent residence to an unspecified group of “eligible” protected persons over the next two years—a change described as a “practical step” for those unable to return to their home country. Eligibility details have not yet been released.
Key Takeaways
- Canada is not lowering total PR numbers, but is significantly reducing temporary residents, especially students
- Economic immigration has become the dominant policy priority
- Universities, private colleges, and employers relying on foreign labour will feel immediate impact
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