Canada Set to Announce New Immigration Levels — What Should the Target Be?

With the evolving immigration landscape in Canada, the upcoming immigration levels plan for 2026-2028 is in the spotlight. Since its inception, immigration has been the staple of the Canadian economy and social life, driving economic development and responding to demographic pressures. However, given global dynamics, housing challenges, and infrastructure issues, what should Canada’s immigration target be?

In this blog post, we will explore the importance of the new immigration targets and discuss the key players shaping Canada’s immigration policy.

Understanding the New Immigration Levels Plan

Immigration, Refugees and Citizenship Canada (IRCC) publishes an Immigration Levels Plan annually, which sets targets for the number of permanent residents (PRs) and temporary residents (TRs) Canada intends to admit. The plan also provides an important framework for shaping policies and allocating resources at the national level.

Canada is projecting the following in the 2026-2028 immigration levels plan:

• It is expected that permanent resident admissions will remain constant at around 380,000 per year between 2026 and 2028, slightly lower than 395,000 in 2025.
• Work permits and international student admissions, both examples of temporary resident admissions, are expected to decline. Canada intends to admit 385,000 temporary residents in 2026, and to decline to 370,000 in 2027 and 2028.
• The final objective is to make sure that the population of temporary residents does not exceed 5% of the total Canadian population by 2027.

These changes show how Canada seeks to moderate immigration levels in line with housing capacity, labour market demand, and public infrastructure provision.

Why Immigration Levels Matter to Canada’s Economy and Society

Canada possesses the lowest fertility rate in the world and an aging population. Subsequently, immigration has become essential in maintaining population growth and addressing labour shortages. Immigration has been vital to the country’s skilled workforce, particularly in technology, healthcare, construction, and education.

However, the number of both temporary and permanent residents has increased, raising concerns. According to some critics, high immigration rates strain the Canadian housing market, healthcare system, and education system. With mounting pressures in urban centres, especially in Toronto, Vancouver, and Montreal, it is evident that immigration levels should be well-controlled.

Key Factors Influencing Canada’s Immigration Target

1. Economic Growth and Labour Needs

Skilled immigrants add value to Canada’s economy, particularly in sectors such as IT, engineering, and healthcare. Immigrants address significant gaps in the labour market, particularly through provincial nominee programs (PNPs) and Express Entry. The growing workforce demand in Canada’s technology and healthcare industries underscores the need for higher immigration levels to meet demand.

Nonetheless, there is a trade-off between economic growth and housing affordability. Although immigrants are a substantial source of economic output in Canada, policymakers should ensure that infrastructure keeps pace with population growth.

2. Infrastructure and Housing Pressures

Demand for housing has increased significantly in major Canadian cities, with rapid immigration exacerbating the trend. In response, policymakers are enacting measures to control housing growth and investing in state infrastructure to accommodate new residents.

The solution is to reduce the influx of temporary residents (e.g., international students and temporary workers) in favour of permanent immigration programs, as proposed by Canada. A more moderate approach will focus on ensuring that housing and other services are affordable for both newcomers and long-term residents.

3. Demographic Shifts and Sustainability

Another major issue is Canada’s aging population. The decline in the number of Canadians entering the labour force has made immigration critical to economic sustainability. In fact, the labour force is increasing due to immigration, and its contributions are essential to maintaining economic productivity and government services.

Canada seeks to maintain high but responsible levels of immigration to sustain the talent that keeps its economy going as it copes with demographic pressures.

What Should Canada’s Immigration Target Be?

A. A Balanced, Evidence-Based Approach

An immigration target must be well-rounded and should:

• Ensure economic growth by averting labour shortages: Canada should attract skilled workers in areas such as healthcare, information technology, and construction to drive growth.
• Enhance effective settlement: Immigration must be managed to ensure newcomers integrate effectively into Canadian society. Providing newcomers with settlement services, language training, and housing is critical to positive outcomes.
• Adapt to global circumstances: Canada’s immigration policy should be responsive to global trends and competition. As other nations, such as Australia and the United States, compete with Canada for talent, Canada must be a destination of choice for skilled workers and entrepreneurs.

B. Adjusting Temporary Resident Levels Responsibly

​​Temporary workers and international students are an essential part of the Canadian economy. Nevertheless, their fast growth has caused pressure on housing markets and social services. The balance can be maintained by reducing the number of temporary residents and expanding permanent-residency routes.

Indicatively, the domestic International Student Program has seen a significant increase, with more than 622,000 international students in Canada in 2023. Although students make an important contribution to Canada’s economy, they also require substantial housing and support. Hence, Canada’s immigration policy could prioritize admitting more international students to permanent residence as a long-term growth measure.

C. Regional and Sector-Specific Targets

Various regions in Canada present different challenges and opportunities for immigration. Although metropolitan areas such as Toronto and Vancouver still account for the majority of newcomers, some provinces and rural regions require more immigrants to boost their local economies.

A provincial immigration model would allow provinces to set their own immigration levels based on labour shortages and economic needs. This would enable more proportional growth across Canada, including in larger cities and smaller communities.

What’s Next for Canada’s Immigration Strategy?

The upcoming announcement of immigration levels for 2026-2028 will shape Canada’s immigration landscape in the coming years. Striking a balance among the economic advantages of immigration, the city’s infrastructure demands, and the challenges of integrating newcomers will be key to achieving sustainable immigration rates.

The future of the Canadian economy depends on a target for immigration that is ambitious yet sustainable: sufficient to meet population requirements and to contribute to economic development and community stability. Canada can maintain its current rate of 380,000 permanent residents per year, as it has been, or adjust it based on labour needs and housing capacity. Still, it is evident that, in the years ahead, responsible immigration planning will play a crucial role.

Canada’s immigration policy should be dynamic and flexible to continue attracting skilled workers, students, and entrepreneurial talent, keeping the country competitive on the international stage.

FAQs

1. What is the Immigration Levels Plan in Canada?
   The Immigration Levels Plan sets annual immigration quotas for permanent and non-permanent residents in Canada. It helps guide government policies that meet the country’s needs, given its demographics and economy.
2. Why is Canada decreasing the number of temporary residents?
   Canada aims to reduce the share of temporary residents to improve housing, public services, and infrastructure, while focusing on more permanent immigration pathways to meet long-term workforce needs, including settlement success.
3. What are Canadian permanent resident targets?
   Canada is interested in admitting approximately 380,000 permanent residents between 2026 and 2028. These figures align with economic objectives and account for infrastructure capacity and community integration.
4. What are the economic advantages of immigration to Canada?
   Immigration supports Canada’s economy by addressing labour shortages, driving innovation, and expanding industries such as healthcare, technology, and construction, thereby sustaining growth amid an aging population.
5. How does immigration affect the housing market in Canada?
   While immigration promotes economic growth, the influx of new people into the country is driving high housing demand. The development of infrastructure should be balanced with immigration levels to avoid housing affordability problems in big cities.
6. Is it possible that the provinces can establish their own immigration targets?
   Yes, provinces can set specific targets through Provincial Nominee Programs (PNPs), allowing regions to respond to local labour needs, population growth, and economic expansion with their own immigration strategies.

Learn more about Canada’s projected immigration numbers and policy approach in Canada Immigration Plans for 2025-2026. This guide helps understand trends for permanent residents, temporary workers, and international students.