Canada freezes immigration at 380,000 and halves number of temporary residents

2 hours ago 2
Canadian flagCanada's federal government released its new immigration targets in the 2025 budget on Tuesday. Photo by Getty Images

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Canada has stabilized the number of permanent residents it aims to bring in each year at 380,000, but halved the number of temporary residents in its new immigration targets released along with its federal budget on Tuesday.

Financial Post

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As per the immigration targets last year, Canada aimed to bring in 395,000 permanent residents in 2025, 380,000 in 2026 and 365,000 in 2027. That has now changed to 380,000 for each year through 2028. Permanent residents will have a chance to apply for Canadian citizenship after living in Canada for at least three years.

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The target for temporary residents, which includes foreign students and workers, will decline from 673,650 in 2025 to 385,000 in 2026, and 370,000 in 2027 and 2028. This move is part of the federal government’s aim to decrease the proportion of temporary residents from about 7.5 per cent to five per cent of the overall population.

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“In 2018, 3.3 per cent of Canada’s population were temporary residents. By 2024, that number had more than doubled to 7.5 per cent, an unprecedented rate of growth that put pressure on housing supply, the healthcare system and schools,” the budget document stated. “Canada’s new government recognizes that this system is no longer sustainable.”

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The new measures are being taken amidst recent controversies surrounding the use of temporary foreign workers and a rising unemployment rate that isn’t expected to peak anytime soon.

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While the number of job vacancies is on the decline, some businesses have said that the unequal distribution of Canada’s labour force means that in certain regions, especially rural areas, it is harder to fill jobs. The federal government said in its budget that it would address the “the unique needs of rural and remote communities.”

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In addition, the budget said that 64 per cent of the 380,000 permanent residents expected in 2026 will be economic migrants — generally young, skilled workers — who accounted for 59 per cent of permanent residents this year. The remaining newcomers belong to categories such as family reunification, refugees and protected individuals, and those admitted for humanitarian and compassionate reasons. This is a move that businesses have been pushing for in recent years.

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The government also said that in the coming months it will launch an “accelerated pathway” for H1-B visa holders — foreign workers in the United States, who were recently hit with substantially higher application fees — to “strengthen Canada’s innovation ecosystem, address labour shortages and attract top talent.”

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