Canada to Cut Study and Work Permits in New 2025 Immigration Levels Plan

Immigration, Refugees, and Citizenship Canada (IRCC) is preparing to release the 2025-2027 Immigration Levels Plan by November 1, introducing significant changes to Canada’s immigration framework. For the first time, the plan will incorporate temporary residents, such as those on work permits, study permits, and visitor visas. This marks a notable shift in Canada's approach to migration.

Historically, the Immigration Levels Plan has focused on setting targets for permanent residents over a three-year period. These targets shape population growth, influence housing and healthcare systems, and impact the labor market. However, with the inclusion of temporary residents, Canada’s migration strategy is evolving to address broader challenges.

Temporary Resident Population and Policy Adjustments

In 2023, Canada hosted over 2.5 million temporary residents, representing 6.2% of the country’s population. The government’s goal is to reduce this percentage to 5% over the next three years by managing the intake of new temporary residents. The precise figures for future arrivals will be revealed in the upcoming plan, but preliminary steps have already been outlined.

Changes to Study Permit Caps

In January 2023, IRCC introduced a cap on study permits, processing only 606,000 applications with 360,000 expected approvals—a 35% reduction. Despite previous opposition to such caps, the move was implemented to manage the growing number of international students in Canada.

Further restrictions are set for 2025, reducing processed study permits to 437,000. Master’s and PhD students, who were previously exempt from the cap, will now be included. With international students accounting for 42% of Canada’s temporary residents in 2023, these changes are intended to better regulate this group’s influx.

Adjustments to Open Work Permits

Changes are also coming to open work permits, specifically Post-Graduation Work Permits (PGWPs) and Spousal Open Work Permits (SOWPs). IRCC plans to introduce new language proficiency requirements for PGWP applicants and reduce the number of issued permits by 175,000 over the next three years.

Similarly, the number of SOWPs issued will drop by 50,000, with eligibility now linked to specific program lengths and in-demand sectors. Spouses of highly skilled workers will still be eligible, but these changes aim to cut the total issuance of open work permits by 325,000.

Temporary Foreign Worker Program Revisions

Reforms to the Temporary Foreign Worker Program (TFWP) will limit the number of temporary workers an employer can hire to 10% of their workforce. Additionally, low-wage workers under the TFWP will now be restricted to a one-year employment term, reduced from two years.

Applications from regions with unemployment rates above 6% will not be processed, except in special circumstances. This change is intended to reinforce the TFWP’s original purpose as a "last resort" for employers, reducing dependence on temporary foreign labor.

Permanent Resident Targets and Policy Adjustments

Canada’s 2024-2026 Immigration Levels Plan set a goal of admitting 500,000 new permanent residents annually by 2025 and 2026. While economic migrants are expected to make up 60% of these admissions, there may be adjustments in the prioritization of immigration categories.

Concerns over affordable housing, healthcare strains, and public sentiment are driving these potential shifts. Recent reports have indicated that while support for immigration remains, many Canadians are growing concerned about the impact on infrastructure and social services.

Balancing Temporary and Permanent Migration

The inclusion of temporary residents in Canada’s Immigration Levels Plan is an effort to strike a balance between maintaining economic growth and addressing the challenges posed by a large temporary resident population. The government aims to protect vulnerable newcomers while ensuring that immigration continues to support the labor market.

The 2025-2027 plan will be a critical document shaping Canada’s immigration policy in the coming years, as the country navigates both domestic concerns and global migration trends.