On June 20, 2025, Immigration, Refugees and Citizenship Canada (IRCC) released its 2025–2026 Departmental Plan. The plan reveals the policy direction Canada has taken in years: tighter control, sector-specific reform, and a new emphasis on integrating immigration with national economic strategy.

This article outlines the most significant changes and what they mean for individuals and employers interested in Canada’s immigration system.

1. A New Permanent Residence Pathway through EMPP

IRCC will make the Economic Mobility Pathways Pilot (EMPP) permanent by the end of 2025. The EMPP allows displaced persons—primarily skilled refugees—to immigrate to Canada through existing economic programs. Making it permanent confirms IRCC’s broader intention: reframing refugee resettlement as a labour strategy, not just a humanitarian obligation.
For employers, this offers a new way to fill skills shortages while contributing to a globally recognized protection program. For displaced individuals, it opens a path to permanent residence that aligns with their professional experience.

2. Sector-Specific Work Permit Stream for Agriculture and Fish Processing

Canada is moving forward with the creation of a new labour stream and work permit type for agriculture and fish processing. These industries have long depended on the Temporary Foreign Worker Program (TFWP), which has become more restricted in recent years.

This new stream is likely to offer greater flexibility and predictability for seasonal and low-wage employers operating in these sectors. The policy shift reflects growing recognition that these industries require individualized, standalone solutions beyond the standard TFWP structure.

3. Tightening of Post-Graduation and Spousal Work Permit Eligibility

IRCC plans to revise the eligibility criteria for Post-Graduation Work Permits (PGWPs) by establishing a new framework that considers the applicant’s field of study. While details are pending, the direction is clear: not all international graduates will be eligible for a PGWP in the future. The intention is to align work permit issuance with labour market needs.

In addition, Spousal Open Work Permits (SOWPs)—currently available to spouses of foreign workers and international students, which will also undergo eligibility revisions. This may impact spouses of undergraduate international students most directly, as IRCC continues to scale back open access to Canadian work permits for accompanying family members.

4. Expansion of LMIA-Exempt Work Permits under New Free Trade Agreements

IRCC is working to implement new free trade agreements (FTAs) with Indonesia and Ecuador and to negotiate mobility provisions with the Association of Southeast Asian Nations (ASEAN) and CPTPP accession countries. These agreements are expected to lead to new LMIA-exempt work permit categories under R204(a) of Canada’s immigration regulations.
Once operationalized, nationals of these countries may be eligible for employer-specific or open work permits without requiring a Labour Market Impact Assessment—streamlining access for professionals and intra-company transferees.

5. GeoMatch: An Algorithm to Guide Settlement

IRCC is testing a new algorithm called GeoMatch, developed in collaboration with Stanford University. The tool is intended to help Express Entry candidates select settlement destinations based on their profile and labour market opportunities.
This represents a significant evolution in how Canada supports regional immigration. Rather than simply issuing PR invitations, IRCC is looking to influence where newcomers land—potentially directing them toward regions with greater integration support and employment demand.

6. Digital Modernization: New Online Account for All Clients

Over the next year, IRCC will roll out a new client portal intended to unify services, streamline communication, and improve application tracking. This platform will likely become the single point of access for everything from temporary resident applications to citizenship and passport renewals.

For applicants, this could mean fewer delays and better transparency. For practitioners and employers, it may offer more consistent case management tools—assuming functionality meets expectations.

7. Reinforcing Policy on Caps, Targets, and Population Control

The 2025–2026 Plan reaffirms Canada’s immigration pathway towards population-level control of immigration:

• Permanent residents will be capped at 1% of the national population.

• Temporary residents are to be reduced to 5%, down from approximately 7% in 2023.

• Study permit caps remain in effect.

• LMIA-based work permits will be limited to 80,000–84,000 annually, a dramatic decrease from 184,000 issued in 2023.

These measures reflect public concerns about housing, infrastructure pressure, and labour displacement. The government is clearly seeking to balance economic need with social capacity.

8. Prioritizing Onshore Applicants and French-Speaking Newcomers

Canada continues to prioritize temporary residents already in the country when selecting permanent residents. IRCC has set a target for at least 40% of PR admissions to come from people already living in Canada. At the same time, provinces are now expected to dedicate 75% of their PNP nominations to in-Canada applicants.

Additionally, the federal government aims to increase the share of French-speaking PRs settling outside Quebec to 8.5%. This includes ongoing category-based Express Entry draws for French language proficiency, along with expanded settlement support under the Welcoming Francophone Communities Initiative.

9. Family Sponsorship and Service Standards

IRCC is also reaffirming its commitment to faster processing for overseas family sponsorships, a program that had slowed significantly in the post-COVID period.

The department’s service goal remains: processing at least 80% of all application types within published timelines and achieving a 90% client satisfaction rate.

What Comes Next?

Looking ahead, Canada is preparing for broader integration of humanitarian and economic programs, a new wave of LMIA-exempt streams through trade agreements, and more precise control over where and how immigrants contribute to the Canadian economy.

For individuals planning to immigrate or employers seeking foreign talent, the system will demand more precision, documentation, and adaptability than ever before.

Need help understanding how these changes affect your case?

Book a consultation with our team at Relydence Immigration & Investment for customized immigration advice based on the newest regulations and your individual goals.