A New Chapter in Canadian Immigration: IRCC’s 2025-2027 Immigration Levels Plan and Its Impact

On October 24, 2024, IRCC unveiled its much-anticipated 2025-2027 Immigration Levels Plan, signaling a pivotal shift in how Canada will manage its immigration system in the coming years. The plan introduces significant reductions in both temporary and permanent resident targets, underscoring the government’s intention to recalibrate immigration to better align with Canada’s socio-economic needs. Below, I analyze these key changes and their implications.

Reductions on Temporary Residents

One of the most striking aspects of the 2025-2027 Immigration Levels Plan is the considerable reduction in targets for the International Mobility Program (IMP). By 2025, the IMP target is set at 285,750, marking a significant cut from previous years. This program, which plays a crucial role in Canada’s immigration strategy, allows foreign nationals to obtain work permits without the need for a Labour Market Impact Assessment (LMIA). It includes streams tied to agreements with partner countries, public policies related to economic and humanitarian factors, family-class immigration, and, notably, Post-Graduation Work Permits (PGWP) .

The impact of this reduction cannot be understated. With PGWPs expected to take up a significant portion of this quota, other LMIA-exempt business immigration streams, such as entrepreneur work permits and Intra-Company Transfers (ICT), may face tighter restrictions. For businesses that rely on transferring talent from abroad or entrepreneurs looking to expand into the Canadian market, the reduced allocation could make these pathways more competitive and challenging.

Breaking down these numbers, the total worker arrivals under the International Mobility Program are set at 285,750 in 2025, significantly dropping to 128,700 in 2026, before seeing a slight recovery to 155,700 in 2027. The Temporary Foreign Worker Program (TFWP), however, remains constant with a target of 82,000 across 2025, 2026, and 2027 .

Meanwhile, the target for international students remains steady at 305,900 per year from 2025 through 2027, reflecting the government’s effort to balance labor market needs with concerns around community capacity .

For the first time, IRCC has set specific targets for temporary residence. While 673,650 workers and students are planned for 2025, the reduction to 543,600 by 2027 highlights the government’s intent to manage the inflow more closely. Targets are not being set for visitors arriving with temporary resident visas or electronic travel authorizations (eTAs), permit extensions, or in-Canada study/work permit applications, but these are considered in the methodology for reaching the broader 5% target.

Reductions on Permanent Residency

The permanent residency targets also reflect a notable decline from previous levels. In comparison to the 2024-2026 plan, which aimed to admit 500,000 permanent residents by 2025 , the new targets show a reduction of 20% by 2027. Here’s how the numbers compare:

• 2025: Previous plan – 500,000; New plan – 395,000

• 2026: Previous plan – 500,000; New plan – 380,000

• 2027: New plan – 365,000.

Key programs will also see significant changes:

• The Provincial Nominee Program (PNP), which was projected to admit 120,000 people in 2025, will drop to 55,000, marking a dramatic cut.

• The Federal High Skilled program will increase from 117,500 to 124,680 in 2025. Of this total, 41,700 will be allocated to category-based draws, while 82,980 will focus on applicants already in Canada, primarily through the Canadian Experience Class (CEC). This is huge news for temporary workers in Canada, who have struggled to immigrate due to high points requirements and difficulties extending their status due to recent policy changes .

• The Start-Up Visa Program and Self-Employed Class will experience a substantial decrease, with numbers dropping from 6,000 to 2,000 .

Additionally, family sponsorship categories are also being scaled back:

• Spousal sponsorships will decrease from 84,000 to 70,000.

• Parent sponsorships will fall from 34,000 to 24,500 .

The Refugees and Protected Persons category will also see reductions, with numbers decreasing from 72,750 to 58,350 . However, there is an increase in the Humanitarian & Compassionate and Other Category, which includes programs for Ukraine, Sudan, Hong Kong, and Humanitarian & Compassionate applications, rising from 8,000 to 10,000 . While the increase in humanitarian admissions is a positive note, the backlogs are likely to grow significantly, given the reduced capacity in other categories.

In-Canada Focus: A Silver Lining for Temporary Residents

Despite the overall reductions in both temporary and permanent residency targets, there’s a key positive development for individuals already in Canada. The new plan introduces a strategic focus called the “In-Canada Focus”, which prioritizes those with Canadian experience. Primarily, this will benefit individuals from the Canadian Experience Class (CEC) and other regional immigration pathways, but it will also include candidates from the Federal Skilled Workers and Federal Skilled Trades programs .

This shift represents a significant advantage for international students and temporary workers already in Canada, as IRCC indicates it will prioritize Canadian Experience Class draws and category-based draws. For individuals transitioning from temporary to permanent residency, this is g reat news, as it shows the government’s commitment to facilitating their integration into Canada. This is especially important given the difficulties faced by temporary residents in extending their status due to recent policy changes.

What This Means for the Future of Immigration Applicants

Although the immigration levels for permanent residency and the newly announced targets for temporary residency are being lowered, it’s important to note that these numbers are still higher than pre-pandemic levels. Canada continues to recognize the value immigrants bring to society, the economy, and in transferring skills and know-how. While the government is choosing to move forward at a slower pace, this does not signal the end of opportunities. Instead, it calls for a shift in strategy.

So what does this mean for prospective immigration applicants? Don’t lose hope! Now more than ever, it’s important to start making long-term immigration plans and develop various strategies to avoid missing opportunities. Applicants should prepare for increasing processing times and ensure they are ready for any changes that may come their way. Flexibility and preparedness will be key in navigating this landscape.

A Note for Immigration Practitioners: Blacksy’s Approach

At Blacksy, a small immigration law firm, we work with selective business and personal immigration clients. We monitor these changes closely and regularly inform our clients of any shifts in policy or strategy to ensure they don’t miss crucial opportunities. We believe in adapting quickly to the evolving immigration landscape to either set new strategies or shift our perspectives to benefit our clients.

For fellow immigration practitioners, this new reality means heightened responsibility. We need to be more vigilant than ever, advocating for our clients’ best interests and exploring alternative avenues to provide them with opportunities. Most of our clients will have one bullet to shoot, and we need to ensure that every effort is made to succeed.

The immigration landscape has become more challenging, and the days of unlicensed immigration practitioners or unqualified consultants taking advantage of clients are numbered. Clients now, more than ever, seek competent and ethical representatives, knowing they need strong advocacy in this competitive space. This is an opportunity for qualified professionals to step up and provide the guidance applicants need to succeed in Canada.

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About the Author

I’m Ahmet Faruk Ocak, a Canadian immigration lawyer and the founder of Blacksy Immigration Law Firm 🌊. 

At Blacksy, we specialize in providing honest, straightforward, and tailored immigration solutions to individuals and businesses worldwide. Our brand promise is simple: no unnecessary fuss, no false hopes, and no empty promises—just realistic, reliable guidance to help you achieve your immigration goals.

Whether you’re expanding your business to Canada, transferring top talent, or planning your future here, we’re here to guide you with precision, transparency, and care.

Visit us at www.blacksyimmigration.com to learn more or to start your journey.