Canada Shifts Immigration Policy Under New Government

Election Results and Immigration Priorities

Following the federal election on 28 April 2025, the Liberal Party returned to power with a minority government under newly elected Prime Minister Mark Carney. In his first press conference, Carney emphasized that immigration remains a key policy area. He confirmed the government will maintain the direction set by the previous Liberal administration, with lower immigration targets for both permanent and temporary residents through 2027.

Permanent and Temporary Migration Targets
Canada's Strategic Immigration Plan (2025–2027) includes phased reductions in permanent resident admissions and introduces specific targets for temporary residents—a first in Canadian immigration policy.

Permanent Resident Targets:

• 2025: 395,000
• 2026: 380,000
• 2027: 365,000

(Down from the previously projected 500,000 per year.)

Temporary Resident Cap:
The government aims to reduce temporary residents—including foreign students and temporary workers—to 5% of Canada’s population by the end of 2027. As of Q1 2025, there were over 3 million non-permanent residents, or 7.25% of the population. Achieving the 5% target would require a reduction of about 1 million temporary residents over the next three years.

Early Impact on International Students
Reductions in temporary migration are already underway, especially for international students, due to enrolment caps and restrictive policies introduced in 2024.

Despite current IRCC data showing nearly 1 million foreign students as of 31 December 2024, institutional reports indicate sharp declines in student numbers. These trends are expected to be reflected in 2025 data and to continue through 2027.

Competitive Pathway to Permanent Residency
As permanent resident quotas shrink, foreign graduates will face a more competitive process for transitioning to PR status.

Response from the Education Sector
Canadian Bureau for International Education (CBIE)
"Policy shifts, processing challenges, and reputational impacts have placed new pressures on students, institutions, communities, and industries across the country... We must now work together to rebuild trust and strategically position international education as a cornerstone of Canada’s prosperity and resilience."

Universities Canada
"Canada can’t win the race for top talent without a bold, coordinated plan. Delays in visa processing and unclear immigration pathways are costing Canada talent and opportunity... Recent policies have eroded the trust and confidence that once made Canada a top destination."

Colleges and Institutes Canada (CICan)
"Congratulations to Prime Minister Mark Carney and all elected parliamentarians... We look forward to working together in the years to come to meet the moment and build a strong and resilient Canada.”

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