The Canadian government plans to grant permanent residency to up to 33,000 temporary work permit holders in 2026 and 2027. This was highlighted in the 2025 federal budget, presented to Parliament on 4 November by the minority Liberal government led by Prime Minister Mark Carney. The government hopes this move will help address long-term labour shortages in the Canadian economy and labour market.
In 2026, the target for temporary residents is set at 385,000, a reduction of nearly 43 per cent compared to 2025. The numbers for international students and temporary foreign workers have been set at 155,000 and 230,000 respectively.
The target for permanent residency remains unchanged. A total of 380,000 permanent residents are expected, with 64 per cent under the economic immigration programme, 84,000 under family reunification, and 56,200 under the refugee and humanitarian category.
The government has indicated priority will be given to rural and remote areas facing chronic labour shortages. The Temporary Foreign Worker Program (TFWP) will be restructured, and more work permits are likely to be issued under the International Mobility Program (IMP).
Reducing the target for temporary residents does not mean entry will be halted. From January to August 2025, only 42 per cent of temporary workers and 29 per cent of international students entered Canada.
Analysts believe this new plan is a crucial step for restoring long-term immigration balance in Canada and stabilising the domestic labour market.
TSN