Canada is preparing a significant shift in how it manages temporary and permanent immigration over the next three years. The upcoming plan will set out new limits for temporary residents while opening a separate pathway for selected workers to secure permanent status.

A central feature of the plan is a new transition program. Up to additional 33,000 workers with valid work permits will have a chance to move into permanent residence across 2026 and 2027. This will operate alongside the regular economic and family immigration pathways.

Temporary resident admissions will be tightened

The federal government intends to lower temporary resident admissions in 2026. The target for all temporary residents will fall to 385,000. This is a sharp reduction from the current target for 2025.

The limit for international students will shift the most. In 2026 the planned number is 155,000. This is less than half of the target set for 2025. The temporary foreign worker target will also fall, although the government will still admit more workers in 2026 than it originally planned in the previous cycle.

These reductions do not necessarily mean that 2026 will bring fewer arrivals in practice. The year 2025 has been well behind target so far. From January to August only a fraction of the expected student and worker admissions were completed. Because of this shortfall the coming year may simply align the targets with actual intake levels.

Future direction for work permit programs

The government has signaled that the Temporary Foreign Worker Program will undergo changes. The goal is to move away from broad use of temporary labour and place more focus on regions and sectors that show clear need.

Most work permits in Canada come through the International Mobility Program rather than the Temporary Foreign Worker Program. Last year the majority of admissions were under the International Mobility Program and this trend is expected to continue. The updated targets for 2026 will set a combined total of 230,000 admissions for workers under both programs.

Permanent residence targets will remain steady

While temporary admissions will see major adjustments the approach to permanent residence is steady. The target for 2026 stays at 380,000. Economic immigration will take up a larger share with nearly 240,000 admissions planned. Family sponsorship targets will be slightly lower and refugee and humanitarian numbers will also decrease somewhat.

The federal plan will also pay more attention to the needs of rural and remote regions. Sectors affected by tariffs or labour disruptions will be considered when allocating space within the economic categories.

Looking toward 2027 and 2028

The outline for the two years after 2026 will continue with similar permanent residence numbers. The notional targets for both 2027 and 2028 will be 380,000 permanent residents each year. Temporary resident targets for 2027 and 2028 will be set at 370,000. This consists of 220,000 workers and 150,000 students annually. These levels represent a much lower intake compared to the earlier plan which called for significantly higher student numbers.