Canada Cuts Temporary Resident Targets in 2026–2028 Immigration Plan
Canada’s federal government has announced a significant reduction in the number of temporary residents it plans to admit over the next three years. The move forms part of the 2026–2028 Immigration Levels Plan released alongside the 2025 federal budget. The government says the change aims to bring immigration to more “sustainable levels.”
Under the new plan, Canada will admit 385,000 temporary residents in 2026, a drop of about 43 per cent compared to 2025 levels. The target will decline further to 370,000 in both 2027 and 2028. These temporary residents include workers and international students entering the country under various permit programs.
In contrast, Canada’s temporary resident intake was much higher in 2025, with more than 673,000 temporary residents welcomed. The sharp reduction reflects concerns that rapid growth placed pressure on housing, healthcare, education, and other public services.
Reason for the Shift
The government says these new targets are part of a plan to keep temporary residents at less than five per cent of the total population by the end of 2027. Officials argue the previous pace put strain on infrastructure and community services. They also aim to transition qualifying temporary workers to permanent residency through targeted initiatives.
Finance Minister François‑Philippe Champagne and Prime Minister Mark Carney have both stated that Canada must balance growth with its ability to support newcomers. They said citizens expect a well‑managed immigration system that matches capacity with economic and social needs.
Impact on Workers and Students
The reduction affects both temporary foreign workers and international students. For 2026, new work permits are projected at about 230,000, while study permits are expected to total around 155,000. These figures are significantly lower than recent years.
Supporters of the new plan say it allows Canada to better integrate newcomers and focus on quality of settlement. Critics argue that steeper cuts could challenge sectors that depend on temporary workers, such as healthcare, hospitality, and agriculture.
Looking Ahead
Canada will continue to admit temporary residents but at reduced levels in 2026–2028. Policymakers will assess how these changes affect the economy, labour market needs, and demographic trends across the country.
