‘The policy shift makes space for more workers to enter Canada’s labour market faster’
While the federal government has released its plan to achieve “a return to sustainable immigration levels,” one expert says this could mean employers have access to more talent.
With the 2026-2028 Immigration Levels Plan, Ottawa is reducing Canada’s temporary population to less than five per cent of the total population by the end of 2027.
Targets for new temporary resident arrivals are set at 385,000 in 2026, and 370,000 in both 2027 and 2028.
“These figures represent new temporary worker and student arrivals to Canada. The targets for workers are allocated to temporary workers under both the International Mobility Program (IMP) and the Temporary Foreign Worker (TFW) Program,” says the federal government.
“This mix of students and workers supports our objective of attracting top talent from across the world to help build Canada’s economy. In recognition of the role temporary foreign workers play in some sectors of the economy, the Plan will also consider industries and sectors impacted by tariffs and the unique needs of rural and remote communities.”
More capacity for permanent residents
While the official targets may seem static, the real flow of new permanent residents—and thus, potential talent—will actually increase in the near term, according to Rachel Battaglia, economist at RBC.
She points out that “one-time exemptions will boost the number in practice.”
“While these exemptions apply to people already living in Canada, processing them as permanent residents opens up more capacity for new permanent residents to come to Canada,” she explains.
Also, the government is shifting priorities within temporary worker programs, increasing allocations for the IMP while reducing those for the TFW program. This change “makes space for more workers to enter Canada’s labour market faster, rather than going through the two-step process of studying in Canada first,” Battaglia writes.
High-skilled workers in certain sectors
Scott Bell, partner at law firm MLT Aikins, and his colleagues also note in a post that employers may have access to more workers thanks to Ottawa’s immigration plan.
“The Plan’s reduction in temporary foreign workers may cause challenges for employers who rely on temporary foreign workers to fill gaps in their workforce. This could include employers in the construction, agriculture and hospitality sectors, among others,” they say.
“However, the Plan’s commitment to prioritising high-skilled workers in certain sectors may benefit employers who work in emerging technologies, health care and skilled trades. Most notably, the increased provincial nominee targets will likely be a great benefit to employers in western provinces, as these provinces will likely see additional allotments added to their provincial nominee programs.”
The federal government has been working on further changes to the Temporary Foreign Worker Program (TFWP).
Temporary residents, students
One significant change in the new plan is a sharp reduction in temporary resident admissions. The government is cutting new temporary residents by 43 per cent—from about 674,000 in 2025 to 385,000 in 2026. This move is designed to help meet the goal of reducing temporary residents to less than five per cent of the total population, though the timeline for this target has been extended to the end of 2027.
Battaglia notes that “with outflows proving difficult to manage, the government turned to dramatically cutting inflows as the primary tool to meet its population targets.”
For international students, meanwhile, admissions have been halved from 2025 levels and will remain at about 150,000 annually over the next three years—the lowest allocation in at least a decade. As Battaglia observes, “reduced targets for international students will further challenge post-secondary education institutions that have a high proportion of students from abroad—and risks impacting Canada’s pipeline of educated talent.”
A number of learning institutions in Canada are dealing with staffing issues as government policies on immigration take effect.
Meanwhile, the federal government claims: “These targeted measures complement the broader objectives of the 2026–2028 Levels Plan, will restore control, clarity, and consistency to the immigration system, while maintaining compassion in our choices and driving competitiveness in our economy.”
