Commonwealth_ Canada’s Minister of Immigration, Refugees and Citizenship, Marc Miller, recently announced a new immigration strategy that aims to temporarily pause Canada’s rapid population growth by reducing the number of new immigrants allowed entry. This policy targets both temporary residents, such as international students and foreign workers, and permanent residents, representing a shift from the rapid population increase since Prime Minister Justin Trudeau’s administration began in 2015. The federal government is tightening control over the number of international students and workers permitted to enter Canada while also scaling back on the numbers permitted through the Provincial Nominee Programs (PNP) and other immigration pathways.
Partner Reis Pagtakhan of a Canadian law firm discussed the implications of this announcement in an interview with CBC News Winnipeg, highlighting its significance for Canada’s immigration policies and its potential impacts on both foreign workers and Canadian employers. The recent policy announcement reflects a series of changes in 2024 that saw the Canadian immigration system reduce or restrict several programs. For instance, the government capped the number of international students permitted to study in Canada and imposed limitations on the low-wage stream within the Temporary Foreign Worker Program. This strategic pivot by the government also includes a reduction in targets for the PNP across provinces, as well as proposed restrictions on spousal work permits, which could further impact employers’ ability to retain a foreign workforce.
One of the most significant reductions involves the PNP, a program that allows provinces to nominate immigrants who meet their regional labor market needs. Canada reduced the targets for PNP admissions by 50%, setting the 2025 admission goal at 55,000, compared to the previous target of 110,000. Similarly, they adjusted the 2026 target to 55,000, a significant decrease from the previous year’s target of 120,000. These reductions are causing concern, especially among current temporary residents and employers who rely on immigrant labor. Many have expressed uncertainty over whether these temporary residents, who have already contributed to Canada’s economy and communities, will be able to transition to permanent residency or remain in the country long-term.
Canada’s new immigration policy is likely to require employers to adjust their recruitment strategies, especially those in sectors that are heavily reliant on foreign workers, such as agriculture, hospitality, and technology. The changes may prompt businesses to focus more on recruiting from Canada’s existing labor pool or to invest in training programs that help current residents transition into high-demand roles. Given the country’s ageing population and labor shortages, this shift presents unique challenges for companies that previously relied on the PNP and Temporary Foreign Worker Program to meet staffing needs.
Despite these significant reductions, the federal government has maintained its focus on attracting highly skilled immigrants through economic immigration programs, such as Express Entry. In fact, the new strategy has slightly increased targets for high-skilled workers within economic immigration pathways. For 2025, the combined categories for high-skilled economic immigrants, which include the Federal Economic Priorities and In-Canada Focus categories, have a target of 124,680 admissions. For 2026, the target is set at 123,230, representing a 6% increase compared to previous targets. This focus aims to ensure that Canada continues to attract skilled workers who can contribute significantly to the economy in fields like technology, healthcare, and engineering, which are in high demand across the country.
However, there is growing advocacy for the government to remain flexible and adaptable in implementing these changes, especially considering the complexities of Canada’s immigration needs. Many stakeholders contend that Canada should persist in providing accessible and equitable pathways for temporary residents already integrated into the country’s workforce and communities.
