Major Changes for Temporary & Permanent Residents

Canada’s immigration strategy is set to undergo major changes between 2025 and 2027 as the country focuses on addressing economic growth and labor shortages. These updates include new rules for both temporary and permanent residents, highlighting Canada’s evolving approach to immigration. As one of the most attractive destinations for immigrants globally, these changes will impact many people, from international students to skilled workers.

Introduction to the 2025-27 Immigration Plan

Immigration, Refugees, and Citizenship Canada (IRCC) will reveal its immigration levels plan for 2025-27, which aims to manage the number of newcomers entering the country. While previous plans primarily focused on permanent residents, this year’s plan introduces new limits on temporary residents, including those on study permits, work permits, and visitor visas. The plan will influence everything from population growth to job market expansion, housing, healthcare, and taxes.

Mark Miller, Canada’s Immigration Minister, has already indicated that the number of temporary residents in Canada will be scaled back to address concerns about the over-saturation of certain labor markets and social services. Let’s break down the key changes in the upcoming immigration plan and what they mean for you.

Key Changes to Canada’s Immigration Plan (2025-2027)

1. Temporary Residents – A Shift in Focus

Temporary residents, including students, workers, and visitors, will see significant changes in Canada’s immigration plan. As of 2023, temporary residents made up 6.2% of the population, with over 2.5 million people in this category. By 2027, the IRCC plans to reduce this to 5% of the population.

This is a major shift, as Canada aims to balance temporary immigration with long-term economic and social needs. The goal is to reduce the number of temporary residents over the next three years, primarily focusing on limiting study permits and open work permits.

2. Study Permits – Tighter Caps and New Rules

Study permits have been a major source of temporary residents in Canada, but the new plan imposes stricter caps. In January 2024, the IRCC announced that it would process 35% fewer study permits than in 2023, capping the number at 360,000 approvals.

Notable Changes:

• Limited Number of Study Permits: The IRCC will only review a certain number of study permit applications each year, marking a departure from previous policies.
• Impacts on Advanced Degrees: For the first time, Masters and PhD students will also be included in the cap, with the number of approved study permits further reduced in 2025 to 437,000.

Why the Changes?
These changes reflect Canada’s focus on reducing temporary residents while addressing concerns that too many international students are arriving in programs that don’t align with Canada’s labor needs.

3. Open Work Permits – Stricter Requirements for PGWPs and SOWPs

The Post-Graduation Work Permit (PGWP) and Spousal Open Work Permit (SOWP) programs, which allow temporary workers to stay and work in Canada after their studies or as spouses of workers, are also facing changes.

Post-Graduation Work Permit (PGWP):

• New Language Requirements: Starting in 2025, PGWP applicants must meet new language proficiency standards. University graduates need a Canadian Language Benchmark (CLB) score of 7, while college graduates require a CLB score of 5.
• Reduction in PGWP Permits: The IRCC expects that 175,000 fewer PGWPs will be issued over the next three years due to the stricter requirements.

Spousal Open Work Permit (SOWP):

• Eligibility Restrictions: SOWP eligibility will be limited to spouses of workers in critical sectors like healthcare and specialized industries. This change will reduce the number of open work permits by 50,000 over three years.

What This Means:
If you are an international student or a spouse of a temporary worker, these changes mean you will need to plan carefully to meet the new requirements or face difficulty securing a work permit.

4. Closed Work Permits – Temporary Foreign Worker Program (TFWP) Adjustments

The Temporary Foreign Worker Program (TFWP) is another key area targeted for reform. Companies using the TFWP must comply with new limits on hiring temporary foreign workers, particularly in low-wage roles.

Key Adjustments:

• Cap on Low-Wage Workers: Employers can no longer fill more than 10% of their workforce with temporary foreign workers in low-wage positions.
• Shorter Work Permits: Low-wage work permits will be shortened from two years to one year. This will encourage employers to hire more permanent residents or Canadian workers.

Impact on Employers:
For businesses relying on temporary foreign workers, this change means that hiring strategies will need to shift, particularly in industries like agriculture and food processing.

5. Permanent Residence – A Continued Focus on Economic Immigrants

Canada’s immigration plan will continue to prioritize permanent residents, particularly those coming through economic immigration streams. The goal is to welcome 500,000 new permanent residents by 2025, focusing on economic immigrants, family sponsorships, and refugees.

Economic Immigration Focus:

• Skilled Workers: Canada will continue to prioritize skilled workers who can contribute to the economy. This includes immigrants with expertise in fields like technology, healthcare, and engineering.

Why the Emphasis on Economic Immigration?
Economic immigrants are seen as a key to filling labor shortages in Canada, helping to drive economic growth and innovation. With an aging population and a declining birth rate, Canada needs skilled workers to maintain its economy.

The Bigger Picture – Addressing Concerns About Housing and Healthcare

As Canada’s population grows, so do concerns about affordable housing and healthcare access. Many Canadians feel that immigration levels need to be adjusted to address these challenges. The 2023 Ironic Institute report revealed that public support for high immigration levels has decreased, with many citizens worried about the strain on housing and healthcare.

While the government continues to highlight the benefits of immigration, it acknowledges that the system must be balanced to prevent overloading social services. The new plan reflects this by reducing temporary residents while still welcoming high levels of permanent immigrants.

Final Thoughts

Canada’s Immigration Plan 2025-27 represents a significant shift in the country’s approach to managing temporary and permanent residents. With stricter rules for study and work permits and continued focus on economic immigration, these changes will impact millions of people looking to make Canada their home.

As the plan unfolds, staying informed about the latest developments will be crucial for international students, temporary workers, and businesses relying on foreign talent. Canada’s focus remains on balancing economic growth, labor shortages, and the capacity of its social services, ensuring that immigration continues to benefit the country as a whole.

Stay updated on immigration news to ensure you can navigate these changes effectively.

These changes are expected to shape Canada’s immigration system for years to come. Make sure to stay up-to-date and plan accordingly if you are impacted by the 2025-2027 immigration rules.