Canada cuts temporary immigration by 43%: What's changing in 2026–2028

Immigration Plan 2026-2028: Decrease in Temporary Residents

Presented on November 4, 2025, the immigration plan for 2026-2028 aims to welcome 380,000 new permanent residents in 2026. This is slightly less than the 395,000 foreigners expected this year. The priority remains to attract more skilled foreigners. However, there is a confirmed slowdown in the intake of temporary residents. The new budget aims to reduce their share to 5% of the Canadian population by 2027. Conversely, the influx of new permanent residents after 2027 remains limited to less than 1% of the total number of Canadians. The new immigration plan seeks to rely on permanent residents instead of this workforce. The guiding principles are stability and sustainability.

Permanent Residents

Priority is given to permanent economic immigration. This intention is clearly stated in the Plan, which increases the share of economic migrants: they will represent 64% of all immigrants expected in 2026-2028 (compared to 59% in 2025): 239,800 in 2026, 244,700 in 2027, and 244,700 in 2028. Moreover, the new budget proposes to expedite the process of obtaining permanent residency for foreigners whose work permits provide a pathway to said permanent residency. This concerns foreigners well-integrated into their host city, committed to their local community, and contributing to regional development (by working, paying taxes); 33,000 foreign workers would be affected. The measure will cost 19.4 million dollars over four years.

Temporary Residents

The new Plan reduces the admission of new temporary residents to 385,000 in 2026, and 370,000 in 2027 and 2028. This is 43% less than in 2025 (673,650 temporary residents). More specifically, the new budget plans to issue 230,000 work permits in 2026 (37% less than in 2025), 220,000 in 2027, and the same number in 2028. The work permits concerned are those issued under the Temporary Foreign Worker Program, the International Mobility Program, work permits for humanitarian reasons, or in the public interest. The number of foreign students is also being reduced. The government plans to issue 155,000 study permits in 2026 (49% less than in 2025), and 150,000 in the following two years.

This significant reduction represents a financial cost for Canada. Fewer temporary residents also mean less revenue. The slowdown in their admissions will cost 168.2 billion dollars over four years. However, the restrictions may be adjusted based on sectors. The government acknowledges the essential role of temporary expatriate workers in areas affected by labor shortages. It is also aware that some Canadian regions are less attractive than others. It also highlights the difficulties of sectors affected by rising customs duties. The 2026-2028 immigration plan will take all these factors into account.

Work Permits: Stricter Rules for Spouses of Temporary Residents

The announcement had already been made in September 2024. The new budget confirms the tightening of rules aimed at limiting the number of work permits for spouses of temporary foreign workers and spouses of foreign students. Since January 21, 2025, the open work permit (OWP) is reserved for spouses of foreign students pursuing a PhD, a master's degree of 16 months or more, or a professional program listed by the government.

The OWP is available to spouses of temporary foreign workers employed in an eligible sector. Canada classifies jobs according to training, education, work experience, and job responsibilities (TEER). Expatriates working in TEER categories 0 (management occupations), 1 (occupations requiring a university degree), 2 (diploma and experience required), and 3 (diploma, experience, and immersion training required).

Note: Only certain professions classified as TEER 0, 1, 2, or 3 allow the expatriate's spouse to obtain an OWP. Additionally, this access to the OWP is only valid if the expatriate has been in position for at least 16 months.

Foreign Students: Increase in Off-Campus Work Hours

Foreign students can work longer off-campus. The Canadian government confirms the increase in the number of hours to 24 hours per week, up from 20 hours previously. The measure was initially enacted on November 8, 2024.

As a reminder, off-campus work refers to a job held by a foreign student outside the campus of the university where they study. Students who can work off-campus without a work permit must meet certain criteria, such as studying full-time at an accredited Canadian institution and following a specific program.

Moving to Canada in 2026

“Putting a bit of order back into the system”: this is how Canadian Prime Minister Mark Carney summarizes the government's new strategy, particularly regarding immigration. The executive justifies the serious "brake" by a desire to better welcome and support new arrivals. According to its conclusions, the current situation no longer allows for the proper reception of as many foreigners as in the past. Despite persistent labor shortages in certain professional sectors, the time has come to reduce the number of temporary residents. At the same time, Canada wants to position itself as the new star country for foreign talent. 1.7 billion dollars will be allocated to attract highly qualified foreign researchers and professionals, notably through the Skilled Worker Program and the Provincial Nominee Program.

Useful Links:

Work in Canada with a temporary work permit

Live in Canada: apply for permanent residence

Study in Canada

Find your TEER classification

Work off-campus: eligibility conditions