Canada's partial release of its 2026–2028 Immigration Levels Plan alongside Budget 2025 reveals a strategic recalibration of the country's immigration framework.

Temporary resident admissions will decline from 516,600 to 385,000, reflecting efforts to balance infrastructure capacity with population growth amid housing pressures and institutional constraints across Canadian provinces.

International student spaces will face a 50% reduction to 155,000 in 2026 (150,000 in 2027 and 2028), while overall projected admissions for workers will drop to 230,000 in 2026, and to 220,000 in 2027 and 2028.

However, the budget allocates $19.4 million over four years to expedite permanent residency for up to 33,000 work-permit holders.

Economic immigration will account for 64% of permanent resident allocations (approximately 239,800 in 2026 and even higher, 244,700 in the following years), up from 59% in 2025, signalling Ottawa's focus on addressing labour market needs.

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