Breaking: 2026–2028 Immigration Levels Plan to fast-track thousands of temporary workers to PR
The federal government will unveil a major shift in Canada’s immigration strategy in the forthcoming 2026–2028 Immigration Levels Plan: a program to transition up to 33,000 temporary work permit holders to permanent residence (PR) across 2026 and 2027. The measure — announced as part of Budget 2025 — is one of several consequential changes aimed at rebalancing Canada’s temporary and permanent resident flows while addressing labour shortages and regional needs.
The Plan, as described in Budget documents, also proposes substantial reductions in temporary resident admission targets for 2026, large re-allocations within permanent resident categories, and new measures to regularize eligible protected persons. Taken together, these changes mark a clear policy pivot toward converting in-country workers into permanent residents while tightening overall temporary admissions.
Headline numbers and targets (2026, as signalled in Budget 2025)
- Up to 33,000 temporary work permit holders to be transitioned to PR across 2026–2027.
- Temporary resident admissions (target for 2026): 385,000 — down 43% from 673,650 in 2025.
- International student admissions (target for 2026): 155,000 — down 49% from 305,900 in 2025.
- Temporary foreign worker admissions (target for 2026): 230,000 — down 37% from 367,750 in 2025 (but up 8% from last year’s planned 210,700).
- Permanent resident admissions (2026 target): 380,000 — unchanged from last year’s Plan.
- Share to economic immigration: 64% of PR admissions to be allocated to economic streams (up from 59%).
What is changing — major policy shifts explained
1. Large-scale temporary-to-permanent conversions
The centerpiece is a new, time-limited program to move up to 33,000 work permit holders onto permanent resident pathways in 2026–2027. The aim is to lock in skilled workers already contributing in Canada’s labour market and to reduce uncertainty for employers who rely on long-term in-country staffing.
2. Lower temporary resident targets — fewer study and work permit admissions planned
Targets for 2026 show a decisive reduction in planned intake of temporary residents, notably international students (down nearly half) and overall temporary admissions (down by 43% from 2025). This reflects an ongoing federal recalibration to ease pressure on housing, services and regional labour market absorption.
3. Rebalancing the PR mix toward economic admissions
Though the overall PR target for 2026 remains 380,000, the Plan increases the proportion allocated to economic immigration to 64% — a move aimed at prioritizing labour-market needs and supporting productivity growth.
4. Targeted supports for protected persons and rural/sectoral priorities
Budget 2025 flags plans to grant PR to eligible protected persons in Canada over the next two years and signals willingness to tailor admissions to industries hit by tariffs, and to the distinct needs of rural and remote communities.
Why the government is shifting course
Officials cite several motivations:
- Reduce pressure on housing and public services by lowering planned inflows of temporary residents.
- Stabilize the labour market by converting long-standing temporary workers into permanent residents, giving employers predictable access to skilled staff.
- Target strategic economic needs by reallocating PR spaces to economic streams and by prioritizing regions and sectors with immediate shortages.
- Respond to public concerns and fiscal realities about rapid temporary resident growth in recent years.
Practical implications for applicants, employers and institutions
- Temporary workers in Canada should gather up-to-date documentation (employment records, pay stubs, employer reference letters) and monitor IRCC guidance — they may become eligible for a fast-track PR route.
- International students and prospective students will see substantially lower intake targets for 2026; those planning study in Canada should reassess timelines and program choices.
- Employers relying on temporary foreign workers should prepare hiring and retention strategies that account for tighter temporary intake but potential pathways to help current staff secure PR.
- Settlement and service providers should plan for a wave of applications from in-country workers seeking PR and for shifted demand in local services tied to slower student arrivals.
Risks, unknowns and timelines
- Implementation details remain unclear. Budget 2025 sets the high-level direction, but program rules, eligibility criteria, application windows and operational timelines will be published later.
- Processing capacity and timelines at IRCC will be a critical bottleneck; converting tens of thousands of temporary workers will require staff, online systems and provincial/federal coordination.
- Regional and sectoral distribution of the 33,000 places has not yet been specified — provinces, territories and employers will be watching for allocation details.
- Short-term market effects: employers in sectors reliant on international students or lower-wage temporary workers may face continued shortages while the policy shift takes effect.
Bottom line
The 2026–2028 Immigration Levels Plan — as signalled in Budget 2025 — marks a deliberate move to slow planned temporary admissions, accelerate permanent pathways for select in-country workers, and re-orient permanent resident allocations toward economic priorities. For temporary workers in Canada the announcement could be transformative; for students and educational institutions, the reduction in study-permit targets signals a new, more constrained era. The details will matter: eligibility rules, how places are allocated, and IRCC’s processing capacity will determine who benefits and how quickly.
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