In October 2025, the Canadian government released its 2025–2027 Immigration Plan. The plan aims to manage the number of temporary residents, including international students and foreign workers. The goal is to reduce pressure on housing, infrastructure, and public services. Early data shows that some of these targets are being met.
International Students
To slow the rapid growth of international students, the government set a two-year cap on study permits. The 2024 cap cut approvals by 35%, with another 10% cut in 2025. New rules include province-specific limits, attestation letters, financial checks, and stricter work permit rules. Between January and August 2025, 132,505 fewer students arrived compared to the same period in 2024.
These changes mean fewer international students can study in Canada. Universities may see lower enrollment, and students need to plan carefully to meet new eligibility requirements.
Temporary Foreign Workers
The Temporary Foreign Worker Program now limits low-wage hiring to 10% and blocks applications in urban areas with high unemployment. Rules for Post-Graduation Work Permits and Open Spousal Work Permits have also tightened. Between January and August 2025, 146,000 fewer temporary worker permits were issued than in 2024.
Employers who rely on foreign workers may face hiring challenges. Entry-level and high-skill positions may become harder to fill. Planning ahead is crucial to avoid labour shortages.
Impacts on Permanent Residency
Permanent residency pathways have also changed. Fewer nomination certificates are available. Many temporary workers transition to permanent residency, but the reduced pathways mean it is harder to stay long-term. Almost half of new permanent residents between January and August 2025 were previously temporary residents. They often have Canadian education, work experience, and strong language skills.
The plan’s focus on reducing temporary residents affects not only students and workers but also those seeking permanent residency. It narrows opportunities for long-term settlement.
Effects on Employers
Employers are feeling the impact. With stricter rules, hiring foreign talent is harder. Academic institutions face enrollment challenges, and companies face workforce gaps. International students and work permit holders often fill crucial roles. Fewer temporary residents can mean fewer skilled employees available.
Employers need to review recruitment strategies. Relying on past methods may not work anymore. Legal advice can help understand obligations, explore alternative programs, and maintain employees’ valid status.
Legal Support and Planning
Immigration compliance is stricter. Mistakes can result in refusals or job losses. Engaging an immigration lawyer early is important. Lawyers can help employers:
- Understand new rules
- Keep foreign employees legally employed
- Explore alternative immigration programs
- Avoid application refusals
Planning ahead reduces risks and ensures smooth workforce management.
What to Expect Next
Canada’s Annual Report to Parliament on Immigration is expected in November 2025. A major change in strategy is unlikely. The government continues to prioritize reducing temporary residents. While options still exist, employers and students must act quickly and seek legal guidance to navigate the changes.
Conclusion
The 2025–2027 Immigration Plan has immediate and visible impacts on students, workers, and employers. Caps on study permits, stricter foreign worker rules, and reduced pathways to permanent residency are changing Canada’s immigration landscape. Understanding these changes and planning ahead is essential for anyone affected. Early legal support can help employers and foreign nationals adapt successfully to the new environment.