According to the federal plan, permanent resident levels will be stabilized at 380,000 annually from 2026 to 2028, down from 395,000 in 2025, but slightly higher than earlier projections of 365,000 by 2027. As of August, the country had already welcomed 276,870 new permanent residents.

The government also aims to increase the share of economic migrants from 59 per cent to 64 per cent, keeping annual permanent resident arrivals under one per cent of the total population.

In contrast, the number of temporary residents will see a sharp 43 per cent drop from 673,650 in 2025 to 385,000 in 2026, and further down to 370,000 in 2027 and 2028. Ottawa said this move is intended to bring temporary residents below five per cent of the total population by 2027, while still addressing labor shortages in tariff-affected industries and rural and remote communities.

The Conservative Leader, Pierre Poilievre, criticized the plan, calling it a “costly Liberal budget” that worsens inflation and national debt, adding that many Canadians “can no longer afford to eat, heat, or house themselves.”

As part of a broader immigration strategy, the federal government will introduce measures to attract high-skilled migrants. A one-time initiative will recruit over 1,000 international researchers, while a new accelerated pathway will allow H1-B visa holders from the U.S. to move to Canada.

Additionally, Ottawa plans to fast-track permanent residency for up to 33,000 work permit holders in 2026 and invest $97 million over five years to launch a Foreign Credential Recognition Action Fund, aimed at helping foreign-trained nurses, doctors, and construction workers integrate into the Canadian labor market.

Canada will implement major cuts to temporary immigration and freeze permanent resident targets under its 2026–2028 Immigration Levels Plan, reviewed in Budget 2025 presented by Finance Minister Francois-Philippe Champagne on Tuesday.

According to the federal plan, permanent resident levels will be stabilized at 380,000 annually from 2026 to 2028, down from 395,000 in 2025, but slightly higher than earlier projections of 365,000 by 2027. As of August, the country had already welcomed 276,870 new permanent residents.

The government also aims to increase the share of economic migrants from 59 per cent to 64 per cent, keeping annual permanent resident arrivals under one per cent of the total population.

In contrast, the number of temporary residents will see a sharp 43 per cent drop from 673,650 in 2025 to 385,000 in 2026, and further down to 370,000 in 2027 and 2028. Ottawa said this move is intended to bring temporary residents below five per cent of the total population by 2027, while still addressing labor shortages in tariff-affected industries and rural and remote communities.

The Conservative Leader, Pierre Poilievre, criticized the plan, calling it a “costly Liberal budget” that worsens inflation and national debt, adding that many Canadians “can no longer afford to eat, heat, or house themselves.”

As part of a broader immigration strategy, the federal government will introduce measures to attract high-skilled migrants. A one-time initiative will recruit over 1,000 international researchers, while a new accelerated pathway will allow H1-B visa holders from the U.S. to move to Canada.

Additionally, Ottawa plans to fast-track permanent residency for up to 33,000 work permit holders in 2026 and invest $97 million over five years to launch a Foreign Credential Recognition Action Fund, aimed at helping foreign-trained nurses, doctors, and construction workers integrate into the Canadian labor market.