Canada cuts back drastically on immigration in 2025-2027 immigration plan
Credit to Author: Canadian Immigrant| Date: Thu, 24 Oct 2024 18:01:25 +0000
The Government of Canada has announced its 2025–2027 Immigration Levels Plan, a significant shift in policy aimed at slowing population growth temporarily while ensuring long-term economic and social stability. The plan, unveiled by Immigration Minister Marc Miller, introduces controlled targets for both permanent and temporary residents, aiming to address increasing pressures on housing, infrastructure, and social services.
For the first time in decades, Canada is scaling back its immigration numbers, reducing the annual intake of permanent residents to:
- 395,000 in 2025
- 380,000 in 2026
- 365,000 in 2027
The number of temporary residents, including international students and foreign workers, will also be reduced, with the goal of capping temporary residents at 5% of the overall population by 2026. This marks a departure from previous years of rapid immigration growth, driven by the government’s response to post-pandemic labour shortages.
Immigration’s economic role
In 2023, immigration accounted for 98% of Canada’s population growth, significantly aiding the country’s economic recovery. The influx of skilled workers helped fill workforce gaps in key sectors, such as healthcare, construction, and technology. However, the accelerated pace of immigration has led to increased demand on Canada’s housing market and social services, creating concerns about affordability and sustainability.
Minister Miller noted the need for a balanced approach: “While immigration remains crucial for our economy, we must ensure that it is managed responsibly to support sustainable development and economic prosperity.”
New targets and key changes
The new immigration levels plan represents a 21% reduction from previous targets, which had aimed for 500,000 permanent residents annually by 2025. The government is now taking a more measured approach, reducing intake to alleviate pressure on the housing market and infrastructure. The temporary resident population is also expected to decrease by approximately 445,000 in both 2025 and 2026, with a modest increase projected in 2027.
Despite these reductions, the plan prioritizes transitioning temporary residents, such as international students and skilled foreign workers, to permanent status. By 2025, temporary residents are expected to make up over 40% of permanent admissions, contributing to the workforce in critical areas like healthcare, skilled trades, and technology. Permanent resident admissions in the economic class will comprise 61.7% of total admissions by 2027.
According to an official statement, the government also aims to strengthen Francophone immigration outside Quebec, with targets set at 8.5% in 2025, rising to 10% by 2027, as part of efforts to support the growth of these communities.
One of the primary goals of the 2025-2027 plan is to ease the strain on Canada’s housing market. By slowing population growth, the government expects to close the housing supply gap by approximately 670,000 units by 2027.
The plan, Minister Miller emphasized, reflects the government’s commitment to a well-managed, sustainable immigration system that addresses both current needs and future growth.
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