Canada will accept fewer permanent residents, international students and temporary foreign workers beginning in 2026, marking one of the most significant shifts in federal immigration policy since the pandemic.

The new immigration levels plan, overseen by Immigration, Refugees and Citizenship Canada, reduces intake targets and introduces tighter eligibility rules as Ottawa attempts to address housing shortages, rising unemployment and mounting pressure on public services.

While overall numbers will decline, the federal government says the system will increasingly favour skilled workers, French-speaking applicants and individuals with Canadian work or study experience.

Permanent Resident Admissions Will Decline Through 2028

Canada’s updated immigration levels plan sets a target of 380,000 new permanent residents in 2026.

That represents a modest drop from 395,000 planned for 2025, and a much larger reduction compared with the 483,000 newcomers admitted in 2024, when the country pursued record immigration growth.

Federal officials say the lower target will remain stable through 2028, signalling the end of the rapid post-pandemic expansion in immigration.

Permanent residents receive most of the rights and responsibilities of Canadian citizens, including the ability to live and work anywhere in the country, access healthcare and pay taxes, though they cannot vote in federal elections.

Common pathways to permanent residence include economic immigration, family sponsorship and refugee resettlement.

Skilled Workers to Dominate Economic Immigration Streams

Despite the overall reduction in permanent resident admissions, the federal government is increasing emphasis on economic immigration programs.

In 2026, approximately 239,800 permanent resident spaces will be reserved for economic-class immigrants through programs managed by Immigration, Refugees and Citizenship Canada.

The target will rise slightly to 244,700 in 2027 and 2028.

Many of these immigrants will be selected through Canada’s Express Entry system, which evaluates candidates using a points-based model that considers:

• Education and professional credentials
• Work experience
• Language proficiency
• Age and adaptability
• Labour market demand

Priority occupations include healthcare, construction trades, agriculture, technology, education and social services.

Federal officials say this approach aligns immigration with labour market needs identified by Employment and Social Development Canada.

Temporary Foreign Worker Numbers Set for Major Reduction

The federal government also plans a sharp reduction in temporary resident admissions.

Under the new plan, Canada aims to reduce the temporary resident population to below 5% of the national population by the end of 2027.

For temporary workers specifically:

• 2026 target: 230,000 new workers
• 2025 target: 367,750 workers
• 2027 target: about 220,000 workers

The policy shift comes alongside new limits on the number of low-wage temporary foreign workers employers can hire, a change expected to affect sectors such as hospitality, agriculture and retail.

Ottawa says the reforms are intended to improve labour market stability and prevent overreliance on temporary labour.

International Student Permits to Fall Dramatically

The most significant reductions involve Canada’s international student program.

Federal projections show the country will issue 155,000 new study permits in 2026, compared with:

• 437,000 permits in 2025
• More than 650,000 permits in 2023

The number will fall slightly again to 150,000 permits in both 2027 and 2028.

At the same time, new financial requirements will apply. International students must demonstrate at least $22,895 in annual living expenses, with additional funds required for accompanying family members.

These measures aim to ensure students can support themselves financially and to address concerns about housing availability in major cities.

Canadian Work and Study Experience Now a Key Advantage

Another central policy change involves prioritizing applicants who already have experience in Canada.

The federal government plans to transition up to 33,000 temporary workers into permanent residents in 2026 and 2027.

Officials say applicants with Canadian education, work experience and language skills often integrate more easily into the labour market and communities.

This strategy also allows Ottawa to reduce the number of temporary residents while still meeting economic immigration targets.

New Limits on Family Sponsorship Programs

Family reunification programs will also face reductions under the updated immigration levels plan.

The federal government expects to admit:

• 84,000 family-class immigrants in 2026
• 81,000 in 2027
• 81,000 in 2028

Family sponsorship programs allow Canadian citizens and permanent residents to sponsor close relatives, including spouses, partners, parents and children.

Officials say the adjusted targets are designed to balance family reunification with economic immigration priorities.

Work Permit Rules Tightened for Spouses and Dependents

The federal government has also introduced stricter rules governing open work permits for spouses and family members of international students and foreign workers.

Spouses of international students will only qualify for work permits if the student is enrolled in:

• Doctoral programs
• Master’s programs lasting at least 16 months
• Certain professional programs such as law, engineering, nursing or pharmacy

Similarly, spouses of foreign workers will only qualify if the principal worker is employed in high-skilled or management-level occupations.

The primary worker must also have at least 16 months remaining on their work permit when the application is submitted.

Dependent children of temporary foreign workers will no longer be eligible for work permits.

Federal Government Expands Francophone Immigration Targets

Even as immigration levels decline, Ottawa plans to increase the proportion of French-speaking immigrants outside Quebec.

The federal government’s targets are:

• 9% of newcomers in 2026
• 9.5% in 2027
• 10.5% in 2028

Officials say the policy supports Francophone minority communities across Canada and strengthens linguistic diversity.

Refugee and Asylum Targets Also Reduced

Canada’s refugee admissions will also decline slightly.

The federal government plans to admit 56,200 refugees and protected persons in 2026, down from earlier projections.

The number will fall to 54,300 in 2027 and remain stable in 2028.

At the same time, proposed legislation known as Bill C-2 — the Strong Borders Act could introduce stricter rules for asylum claims.

Among the proposed measures:

• Asylum claims made more than one year after arrival could be rejected
• Claims submitted more than 14 days after crossing from the United States may also become ineligible

The legislation would also give the government expanded authority to cancel immigration documents in certain circumstances.

Why Ottawa Is Reshaping Canada’s Immigration System

Federal officials say the policy changes reflect growing concerns about housing affordability, public service capacity and labour market stability.

Canada’s population growth reached record levels in recent years, driven largely by immigration and temporary residents.

By reducing intake and tightening eligibility rules, Ottawa aims to create what policymakers describe as a “smaller, more targeted and sustainable immigration system.”

Departments including Finance Canada and Employment and Social Development Canada have also emphasized aligning immigration policy with long-term economic needs.

Frequently Asked Questions

How many permanent residents will Canada accept in 2026?

Canada plans to admit 380,000 permanent residents in 2026, down from 483,000 in 2024. The target is expected to remain stable through 2028.

What changes are coming for international students?

Canada will issue 155,000 study permits in 2026, a major decline from previous years. Students must also prove they have at least $22,895 in annual living expenses.

Are temporary foreign worker numbers being reduced?

Yes. The federal government plans to admit 230,000 temporary workers in 2026, down significantly from 367,750 in 2025.

Can spouses of international students still obtain work permits?

Only in limited cases. Work permits will generally be restricted to spouses of students in doctoral, long master’s or select professional programs.

Why is Canada reducing immigration levels?

The federal government says the changes aim to address housing shortages, labour market conditions and pressure on healthcare and education systems while maintaining immigration as an economic driver.