Canada’s 2026–2028 Immigration Budget: Key Numbers and What They Mean
- InfoPlace Canada
- 19 hours ago
- 5 min read
The federal budget released on November 4 2025 did something unusual: it combined the fiscal blueprint with a new Immigration Levels Plan.For the first time, Canada’s immigration strategy and budget priorities were announced together, signalling how closely the government now ties population growth to economic and social capacity. At InfoPlace Canada we have parsed the budget documents and official government reports to highlight what’s changing and what it means for people planning to study, work or settle in Canada.
This combined budget and levels plan marks a strategic reset for immigration. The federal government explicitly states that Canada must return to sustainable levels of newcomers, with a goal of reducing the temporary resident population to less than 5 % of the overall population by the end of 2027. The plan therefore stabilizes permanent resident admissions and sharply lowers new temporary visas to prevent overstretching housing, schools and social services. It also ties immigration targets more closely to labour‑market needs and community capacity, rather than unlimited growth.
1. Permanent Residence Targets: Stable but More Skilled
Budget 2025 keeps the number of new permanent residents (PRs) flat. The government will admit 380 000 permanent residents per year in 2026, 2027 and 2028 slightly below the 395 000 target for 2025 and almost a 24 % reduction from the peak plan of 500 000 announced two years ago.The share of economic immigrants will rise from 59 % to 64 % of total PR admissions.
Key takeaways:
PR targets frozen: 380 000 admissions per year from 2026–2028
Economic focus: The economic category grows from 59 % to 64 % of PR spots.
Family & refugee categories shrink: Family reunification falls to 84 000 in 2026 and 81 000 in 2027–28, while refugee/humanitarian admissions decline to 56 200–54 300.
2. Temporary Resident Caps: Dramatic Downshift
Canada’s biggest shift is in temporary residents. Under the 2024‑announced 2025‑27 plan, the government planned to admit 516 600 temporary residents in 2026. The new budget slashes that to 385 000, a 25 % drop from the previous 2026 target and a 43 % cut from the 673 650 target for 2025. The cap shrinks further to 370 000 for 2027 and 2028.
The reduction is concentrated in study permits. Previously, Canada planned to issue 305 900 study permits each year; the new plan caps new study permits at 155 000 in 2026 and 150 000 thereafter, a 49 % cut. Worker admissions will be 230 000 in 2026 and 220 000 for 2027–28, down from 367 750 targeted workers in 2025.
Key takeaways:
3. Why the Downshift? Non‑Permanent Residents Have Swelled to 3 Million
One reason behind the cut is the sheer number of people already in Canada on temporary visas. Statistics Canada estimates that 3 024 216 non‑permanent residents were in Canada on July 1 2025, representing 7.3 % of the population. This includes international students, temporary foreign workers and asylum‑seekers.For context, Canada’s temporary resident population peaked at 3.149 million in October 2024 and then declined as departures and PR transitions outpaced new arrivals.. Ottawa aims to lower the temporary share to under 5 % of the population by 2027.
With only 380 000 PR spots per year, today’s 3 million non‑permanent residents mean roughly 8 temporary residents for every permanent‑resident place. That ratio underscores how competitive transitions will be.
4. One‑Time PR Pathway for Workers
To offset the large stock of temporary workers and to avoid losing needed talent, the budget introduces a one‑time measure to transition up to 33 000 work‑permit holders to permanent residence in 2026–27. These are individuals already in Canada, contributing to the labour market and paying taxes.
The program’s eligibility criteria have not yet been published, but the budget allocates CA$19.4 million over four years for processing. Applicants should watch for updates, as this could be similar to 2021’s temporary‑resident‑to‑PR pathway but with stricter selection.
The plan also introduces a two‑year initiative to streamline the transition of approximately 115 000 protected persons refugees and asylum‑seekers who already have recognized protected status in Canada to permanent residence. These admissions are separate from the 380 000 PR cap and will accelerate the integration of protected persons into Canadian society and uphold the country’s humanitarian commitments.
5. Impact on International Students and Workers
Study permits: a “golden ticket”
With study permits capped at 155 000 in 2026 (down from 305 900), obtaining a Canadian study permit will be harder than ever. Recent data show high refusal rates: a November 2025 Reuters report noted that 74 % of Indian applicants were refused in August 2025, and 40 % of study‑permit applications overall were rejected. Students must therefore present strong academic credentials, financial proof and a clear plan. Schools and applicants should expect slower processing and more scrutiny.
Work permits: smaller pool, targeted sectors
Work‑permit numbers fall modestly to 230 000 in 2026 and 220 000 thereafter Ottawa has signalled that priority will go to industries facing labour shortages and to rural/remote Employers may need to prove greater need and align wages with sector standards.
Immigration to Canada is still possible, but the bar has been raised. Working with experts can make the difference between success and frustration. If you are planning to study, work or settle in Canada, contact the InfoPlace Canada team for tailored guidance and representation.
Francophone Admissions and Quotas
While the 2026–28 plan curbs overall entries, it strengthens commitments to Francophone immigration outside Quebec. Ottawa has set explicit targets for French‑speaking permanent residents: 9 % (30 267 people) of all PR admissions in 2026, 9.5 % (31 825) in 2027, and 10.5 % (35 175) in 2028. These targets are designed to support the vitality of Francophone minority communities across Canada and work towards a broader goal of 12 % Francophone admissions by 2029. Because these figures are percentages of overall permanent admissions, they will remain in line with the 380 000 PR cap each year and may be adjusted once Quebec tables its own plan.
Key takeaways (Francophone immigration):
Rising French targets: 9 % (30 267) in 2026, 9.5 % (31 825) in 2027 and 10.5 % (35 175) in 2028.
Strategic growth to 12 % by 2029: The plan sets a clear trajectory towards 12 % Francophone admissions outside Quebec.
Consistent share of PR spots: Since overall PR admissions remain at 380 000 per year, the French‑speaking quota grows within a stable envelope, signalling strong federal support for Francophone communities.
What This Means for Applicants – and How InfoPlace Canada Can Help
The 2026–28 Immigration Levels Plan marks a strategic slowdown rather than a closure. Canada remains committed to welcoming newcomers, but it’s prioritizing quality over quantity and aligning admissions with infrastructure capacity.
Our analysis suggests:
Competition will intensify across all categories. Fewer PR spots and temporary visas mean only the strongest applications will succeed. Applicants should ensure that every document (from proof of funds to language tests) is complete and error‑free.
Temporary residents must plan ahead. With roughly eight temporary residents per PR slot, those already in Canada should build Canadian work experience, improve language skills, and monitor provincial nomination programs to enhance their chances.
International students need robust strategies. The days of easy study‑permit approvals are over. Choose recognized programs, prepare compelling study plans, and show clear links to your career goals. Given the cap, even eligible candidates may face long wait times.
Professional guidance matters more than ever. The budget’s cuts and new programs (like the 33 000‑person PR pathway) create uncertainty. Experienced immigration consultants can help navigate the rules, avoid mistakes, and time applications strategically.
Conclusion
The 2025 budget and the accompanying 2026–28 Immigration Levels Plan represent the most significant recalibration of Canada’s immigration system in years. Permanent resident targets are stable, but temporary admissions are being sharply curtailed and only the most qualified candidates will be accepted. As non‑permanent residents already here contemplate their next steps and prospective newcomers weigh their options, staying informed and prepared is crucial.
At InfoPlace Canada, we will continue to monitor policy developments and provide trusted guidance to help you navigate these changes and achieve your Canadian immigration goals. Contact us ask@infoplacecanada.ca or call +13065856565.