Canada is set to significantly tighten its immigration system in 2026, reducing the number of new permanent residents, international students and temporary workers after years of record-high intake.
The changes mark a sharp shift in federal policy, which had focused on rapid population growth to address labour shortages. First introduced in late 2024 and updated again in November, the new immigration caps aim to lower unemployment, ease housing affordability pressures and reduce strain on public services such as health care.
While overall immigration levels will continue to fall, the federal government is also reshaping priorities to favour skilled workers, French-speaking applicants and individuals with prior Canadian experience.
Immigration consultant Mandeep Lidher said the changes reflect a move toward a smaller, more selective system. He noted that tighter eligibility rules are designed to ensure newcomers — particularly students and workers — are better positioned to contribute to Canada’s economy and long-term community sustainability.
Under Canada’s latest immigration levels plan, the country will admit 380,000 new permanent residents in 2026 — down slightly from 395,000 in 2025 and far below the more than 483,000 welcomed in 2024. That cap will remain in place through 2028.
Experts say the reduction signals a recalibration after several years of rapid growth. Toronto-based immigration consultant Al Parsai said competition for permanent residency will intensify, with greater emphasis on education, work experience and economic contribution.
Economic immigration remains the government’s top priority, with nearly 240,000 admissions planned for skilled workers in 2026. Applicants with experience in health care, social services, skilled trades, agriculture, education and STEM fields will continue to be favoured through the Express Entry system.
Canada is also moving to reduce the number of temporary residents to less than five per cent of the total population by the end of 2027. In 2026, only 230,000 new temporary foreign workers will be admitted — a steep drop from the 367,750 target in 2025. That number will fall further to 220,000 in the following years.
The government has also tightened employer rules, limiting how many low-wage temporary foreign workers can be hired. According to Statistics Canada, Canada currently has more than three million non-permanent residents.
International student admissions will be cut by more than half. Ottawa plans to issue just 155,000 new study permits in 2026 and 150,000 in each of the two years after that, compared with caps of 360,000 in 2024 and 437,000 in 2025. Student intake peaked at over 650,000 in 2023.
Financial requirements for students have also increased. As of September 2025, single applicants must prove they have at least $22,895 per year to live in Canada, with higher amounts required for accompanying family members.
To reduce reliance on new arrivals while still meeting labour needs, the federal government plans to transition up to 33,000 temporary workers to permanent residency in 2026 and 2027. Officials say prioritizing applicants with Canadian experience helps address workforce gaps without adding pressure to housing and public services.
Parsai said adaptability, language proficiency and time spent working or studying in Canada are now central to immigration success.
Family reunification targets are also being lowered. Canada plans to admit 84,000 family-class immigrants in 2026, with that number dropping to 81,000 in subsequent years.
Work permit eligibility for family members has been narrowed. Only spouses of certain international students — such as those in doctoral programs or long master’s degrees — and spouses of high-skilled foreign workers will qualify. Dependent children of foreign workers are no longer eligible for work permits.
Even as total numbers decline, Ottawa wants to increase the share of French-speaking newcomers. Francophone immigrants are expected to make up nine per cent of new permanent residents in 2026, rising to more than 10 per cent by 2028.
Admissions for refugees and humanitarian entrants will fall to 56,200 in 2026, down nearly 12,000 from earlier targets, with further reductions planned.
The government is also proposing tighter asylum rules under Bill C-2, the Strong Borders Act. If passed, the legislation would make claims ineligible if filed more than one year after arrival in Canada or more than 14 days after crossing from the U.S., and could allow authorities to cancel immigration documents immediately.
Critics warn the changes could disproportionately affect vulnerable populations. Carleton University professor Fen Hampson said Canada is seeing major cuts to government-assisted refugees, including those fleeing war, persecution and discrimination.
Together, the measures represent one of the most sweeping overhauls of Canada’s immigration system in decades — shifting the focus from rapid growth to tighter control, selectivity and long-term sustainability.
