Overview
Canada has released its 2026–2028 Immigration Levels Plan alongside the federal budget, outlining a strategic recalibration of the country’s immigration approach. The plan maintains steady permanent residency targets while substantially reducing temporary resident intake, particularly among international students.
The emphasis shifts toward economic-class immigration and higher-skilled employment pathways, with new transition opportunities for select temporary workers and Protected Persons already in Canada.
Key Developments
Permanent Residence: Economic Focus Intensifies
Annual permanent resident admissions will stabilize at 380,000 from 2026 through 2028, down slightly from 2025’s 395,000 target. However, the composition changes significantly.
Economic-class immigration will rise from 59% to 64% of total admissions, translating to approximately 239,800 economic immigrants in 2026 compared to 229,750 in 2025—a 4.4% increase.
The Provincial Nominee Program (PNP) gains prominence as federal economic streams face reductions. This shift expands opportunities for skilled professionals and business immigrants while giving provinces greater control over selecting economic candidates aligned with regional labor needs.
Family reunification and humanitarian categories will see modest decreases of 4.5% and 9.7% respectively.
Temporary Residents: Sharp Reductions Ahead
The most dramatic change affects temporary resident admissions, dropping from 673,650 in 2025 to just 385,000 in 2026, then further to 370,000 in 2027-2028.
International student admissions face a nearly 50% cut—from 305,900 to 155,000. This follows regulatory changes implemented in 2024 targeting the international student program.
Temporary foreign worker entries will decline 37%, from 367,750 to 230,000. However, this reduction comes with a strategic rebalancing.
Canada plans to reduce reliance on Labour Market Impact Assessment (LMIA)-based permits while expanding LMIA-exempt streams under the International Mobility Program (IMP). The focus shifts away from low-wage positions toward highly skilled roles, including intra-company transfers.
The government acknowledges certain sectors’ dependency on temporary workers and will tailor implementation considering tariff-affected industries and regional labor shortages.
Pathways to Permanence for In-Canada Workers
Two significant transition programs will launch:
- A one-time initiative converting up to 33,000 temporary workers to permanent residents in 2026-2027. This may prioritize senior managers and executives who lost Arranged Employment points in earlier 2025 policy changes.
- Approximately 115,000 eligible Protected Persons in Canada will transition to permanent residence over the next two years.
These measures recognize foreign nationals who have established roots in Canadian communities, contribute to the tax base, and support economic growth.
Francophone Immigration Expansion
Francophone admissions to provinces outside Quebec will reach 10% by 2028, advancing toward a 12% target by 2029. This strengthens Francophone minority communities and supports their economic vitality.
Enhanced Compliance and Worker Protections
Modernization efforts across the International Mobility Program and Temporary Foreign Worker Program will include digital integration, enhanced data sharing, and expanded employer oversight.
Upcoming measures feature automated audits, stricter enforcement, a Temporary Worker Protection Fund, and broader access to Open Work Permits for Vulnerable Workers.
Strategic Direction
The Immigration Levels Plan, presented annually to Parliament by the Immigration Minister, projects admission numbers across permanent and temporary categories, including economic, family, humanitarian streams, students, and temporary workers.
This 2026-2028 plan represents stabilization rather than contraction. It aims to reduce temporary residents to below 5% of Canada’s population by end of 2027 while maintaining permanent resident levels.
The strategy prioritizes sustainability, economic alignment, and long-term integration, addressing pressures on housing, healthcare, and education while matching immigration growth to infrastructure capacity and labor market demands.
My Insight
This plan signals a fundamental shift in how Canadian employers should approach workforce planning. Companies relying on temporary foreign workers need to act now—develop internal mobility strategies that prioritize LMIA-exempt categories like intra-company transfers and evaluate which positions truly qualify as highly skilled.
For businesses with temporary workers already in Canada, the 33,000-person transition program represents a critical retention opportunity. Start identifying key employees who may qualify, particularly senior managers affected by recent Express Entry changes.
The expansion of Provincial Nominee Programs creates new leverage points. Employers with operations in multiple provinces should explore provincial streams strategically—different provinces offer varied pathways that may better suit your workforce needs.
Timing matters significantly. With temporary admissions dropping 43% in 2026, competition for available spots will intensify. Companies should front-load hiring plans and file applications earlier in the cycle. This isn’t a temporary tightening—it’s a multi-year recalibration that will fundamentally reshape access to Canadian talent markets through at least 2028.