Ottawa has unveiled a new immigration plan that will largely maintain current levels over the next three years, aiming for a balance between economic needs and social services. The federal government announced on Thursday that Budget 2026 will set the target for permanent resident admissions at 380,000 annually for 2027, 2028, and 2029, a figure that will remain stable. Similarly, the number of new temporary resident arrivals will be held at 370,000 per year during that same period.
The plan is designed to address pressures on housing, health care, and social services while still supporting the country’s economy. To help implement this strategy, the budget allocates $56.9 million over four years to Immigration, Refugees and Citizenship Canada. A further $302.3 million will be directed towards a specific initiative: creating a pathway for up to 200,000 temporary residents to become permanent residents by the end of 2027. Half of these individuals will be considered through the Express Entry system or the Provincial Nominee Program, providing provinces and territories with more flexibility to meet regional labour demands.
Focus on Economic Immigration and Program Reforms
A core component of the 2027-2029 Immigration Levels Plan is a continued focus on economic immigration. The government states this is a key priority to attract global talent and fill critical labour gaps in high-demand occupations. According to supplementary information from the Immigration, Refugees and Citizenship Canada (IRCC), economic immigration will represent 64% of all permanent resident admissions in 2027 and 2028.
To support this, the plan will increase admissions under the Federal High Skilled and Provincial Nominee Programs. This approach is intended to ensure that Canada attracts the necessary talent for major national projects while also responding to the unique labour market needs of different provinces and territories.
Temporary Foreign Worker Program Overhaul
Budget 2026 also signals significant reforms to the Temporary Foreign Worker Program (TFWP). The government is injecting $151.5 million over five years, beginning this year, to overhaul the program. The funds, channelled through Employment and Social Development Canada, aim to better align the TFWP with regional labour market needs in collaboration with provincial and territorial partners. The reforms will also focus on improving processing times and strengthening employer compliance, though the budget does not provide specifics on the nature of these changes.
The IRCC documents highlight that the plan recognizes the important role temporary foreign workers play in the economy, particularly in sectors affected by tariffs and in rural and remote communities. The targets for temporary residents, which include both workers and international students, are developed in tandem with permanent resident targets, with an emphasis on transitioning those already in Canada with needed skills to permanent status.
Commitment to Francophone and Humanitarian Goals
The new immigration plan also reinforces Canada’s commitment to supporting Francophone minority communities outside of Quebec. The target for Francophone admissions destined for these communities is set to increase, reaching 10.5% by 2028. This is a step toward the broader government goal of achieving a 12% francophone immigration share by 2029.
Family reunification and refugee resettlement remain key pillars of the plan. The overall proportion of family class admissions is expected to remain stable, between 21.3% and 22.1%, reflecting Canada’s tradition as a welcoming country. Canada will maintain its status as a global leader in refugee resettlement, with 13% of overall permanent resident admissions dedicated to refugees and protected persons. The government has also included additional admission spaces to fulfil its humanitarian commitments.
As part of a broader effort to recalibrate the immigration system to sustainable levels, the government is implementing a one-time initiative. Over a two-year period, it will streamline the transition of approximately 115,000 protected persons in Canada who are already on a pathway to permanent residence. These admissions are in addition to the 380,000 permanent resident target annually.
The plan also includes a concrete target for reducing Canada’s temporary population to less than 5% of the total population by the end of 2027, with new temporary resident arrivals set at 385,000 in 2026 and decreasing to 370,000 in 2027 and 2028.
