Major Immigration Shifts Coming for International Students and Temporary Foreign Workers in Canada
Canada is preparing for some of the most significant immigration adjustments in recent years, following new announcements tied to the federal government’s 2026–2028 Immigration Levels Plan and Budget 2025. These changes will directly influence international students, temporary workers, and individuals hoping to transition to permanent residency.
This report provides a comprehensive breakdown of what newcomers and current residents can expect.
Canada Plans a Large-Scale TR to PR Transition for 2026–2027
The federal government has revealed its intention to support up to 33,000 temporary foreign workers in transitioning to permanent residency over 2026 and 2027. This accelerated pathway aims to focus on:
- Workers already living and contributing economically in Canada
- Individuals with strong community ties
- Candidates working in in-demand fields
- Temporary workers who pay taxes and are integrated into the labour market
While IRCC has not yet released specific program details, the initiative mirrors the highly popular 2021 TR to PR pathway, which filled its quota on the day it opened.
The emphasis aligns with current immigration trends: recent Express Entry reports show that 64% of PR applicants invited in 2024 possessed at least one year of Canadian work experience, highlighting IRCC’s growing preference for candidates already employed in the country.
New Restrictions Expected for the Temporary Foreign Worker Program
Prime Minister Mark Carney has stated that Canada’s Temporary Foreign Worker Program (TFWP) will undergo structural changes to ensure it focuses on essential industries and regional needs.
Key shifts expected:
- More targeted processing for strategic sectors
- TFWP arrivals to decline from 82,000 to 60,000 in 2026
- Possible stricter criteria for employers seeking LMIAs
- Continued prioritization of regions with low unemployment
- A long-term shift toward reducing reliance on temporary labour
Last year’s LMIA processing pause in high-unemployment regions was an early signal of this tightening approach.
New Sector-Specific PR Pathways and Work Permit Streams
To strengthen its labour market, Canada is set to roll out multiple new pathways targeted at essential industries.
New pathways expected to launch:
- PR pathway for H1-B visa holders working in tech, healthcare, research, and advanced industries
- Immigration spaces for 6,000 undocumented construction workers across Canada
- A new agriculture and fish-processing PR and work permit stream
- Reopening of Home Care Worker Pilot Programs in 2026
These pathways aim to support businesses facing skilled labour shortages and create opportunities for workers already contributing to key sectors.
Major Changes Coming for International Students
1. Study Permit Caps to Be Further Reduced in 2026
Upcoming announcements in January 2026 will reveal the new annual cap for study permit applications. Early indications show:
- A possible reduction aligned with the Immigration Levels Plan
- Only 155,000 new international student arrivals allowed in 2026, down from over 300,000 last year
- Increased competitiveness for undergraduate admissions
However, Canada is currently below its international student targets, meaning some applicants may still find opportunities.
2. Graduate Students Exempted from Caps
Beginning January 1, 2026, Master’s and PhD students:
- Will not require an attestation letter
- Will benefit from faster processing, possibly within two weeks
- Can include family members in their applications for expedited processing
This exemption aims to attract high-level talent and support Canada’s innovation goals.
3. Removal of Certain Programs from PGWP Eligibility Starting Early 2026
The federal government previously announced that 178 academic programs will soon become ineligible for Post-Graduation Work Permits.
These programs will remain eligible only until early 2026, after which students enrolling in them may not be able to obtain a PGWP.
Students planning to study in Canada are strongly advised to:
- Choose programs listed as PGWP-eligible
- Confirm program eligibility directly with their designated learning institution
Summary of Expected Changes
For Temporary Foreign Workers
- Accelerated TR to PR pathway for 33,000 workers
- Stricter TFWP rules and reduced intake
- New PR and work permit streams for key sectors
For International Students
- Reduced study permit cap in 2026
- Graduate students exempt from caps and attestation letters
- PGWP eligibility changes effective early 2026
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
