Ottawa unveils new immigration plan reducing international students and foreign workers while introducing faster residency routes for US-based talent.
The Canadian government has announced sweeping reforms to its immigration policy, cutting the number of temporary residents — including international students and foreign workers — by nearly 43% over the next three years.
The plan, unveiled on Tuesday November 5, 2025, as part of the federal budget, represents one of the sharpest reductions in Canada’s temporary immigration in decades. The move comes amid political and economic pressure to manage housing shortages and public sentiment over the country’s record population growth.
Under the new immigration levels plan, the intake of international students will be capped at 155,000 in 2026, dropping slightly to 150,000 in 2027 and 2028. That marks a sharp fall from the previous target of 305,000 students annually.
Similarly, the combined number of temporary workers and students is expected to decline from 385,000 in 2026 to 370,000 by 2028. The number of new work permits under the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP) will fall from 230,000 next year to 220,000 by 2027.
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In 2025, Canada plans to admit about 673,650 temporary residents — including 367,750 foreign workers and 305,900 students — compared with the newly adjusted projections of 516,600 for 2026 and 543,600 for 2027.
Indians are expected to be among the most affected, representing significant shares of both the foreign worker and international student populations. In 2024, Indian nationals made up over 20% of temporary foreign workers, nearly 30% of international mobility participants, and more than a third of student visa holders.
Immigration Minister Lena Metlege Diab said the government aims to bring temporary resident numbers down to less than 5% of the national population by the end of 2027. “We will balance new arrivals with the planned departure of students and workers whose status expires,” she said in Parliament.
While the temporary migration cuts are steep, permanent residency targets will remain relatively stable, with 395,000 planned admissions in 2025 and 380,000 annually through 2028. The government said it would prioritize economic immigration, with 65% of new permanent residents to be selected based on labor market needs.
“The new plan puts Canada on a sustainable path,” the Immigration Department said in a statement, adding that the reforms are designed to “restore balance” to the system while preserving opportunities for skilled migrants.
