The Liberal government’s 2025 Budget, tabled on Nov 4, unveils the most sweeping reset of Canada’s intake of non-permanent residents in more than two decades. The 2026-2028 Immigration Levels Plan cuts the annual cap on new study-permit approvals in half—to 155,000 next year and roughly 150,000 in both 2027 and 2028—after colleges and universities reached record-high international enrolments that the government says outpaced housing and campus supports. Temporary foreign worker numbers are also squeezed: new work-permit approvals fall to 230,000 in 2026, down from an estimated 368,000 this year, and are held below 250,000 for the rest of the plan period.
Finance officials argue that curbing short-term migration is the fastest way to relieve pressure on rents, healthcare wait-lists and classroom crowding while Ottawa continues to welcome roughly 380,000 permanent residents a year. The portfolio mix, however, shifts sharply toward economic streams—63 % of all admissions—while family-class and humanitarian quotas are trimmed. By 2027 the share of temporary residents in Canada’s population is expected to fall below 5 %, reversing the post-pandemic surge that reached 7.5 % last year.
![Federal Budget Slashes Student Visas and Caps Temporary Migration Through 2028]()
For post-secondary institutions that rely on foreign-student tuition, the visa cap is a fiscal jolt; several large universities have already announced hiring freezes and program cuts. Private-sector employers that depend on seasonal or entry-level labour warn of acute shortages, especially in agriculture and hospitality. Conversely, technology firms and provincial governments applauded the tilt toward high-skilled immigration, saying it aligns talent supply with long-term economic needs.
Practically, organisations that recruit or support international students must now plan around smaller, province-allocated visa quotas and stricter compliance audits. Employers using the Temporary Foreign Worker or International Mobility Programs should expect longer lead times, more Labour-Market Impact Assessment scrutiny and greater competition for the reduced quota space. Mobility managers are advised to front-load housing arrangements and explore permanent-resident pathways earlier in an assignee’s life-cycle to mitigate cap risks.
Finance officials argue that curbing short-term migration is the fastest way to relieve pressure on rents, healthcare wait-lists and classroom crowding while Ottawa continues to welcome roughly 380,000 permanent residents a year. The portfolio mix, however, shifts sharply toward economic streams—63 % of all admissions—while family-class and humanitarian quotas are trimmed. By 2027 the share of temporary residents in Canada’s population is expected to fall below 5 %, reversing the post-pandemic surge that reached 7.5 % last year.
For post-secondary institutions that rely on foreign-student tuition, the visa cap is a fiscal jolt; several large universities have already announced hiring freezes and program cuts. Private-sector employers that depend on seasonal or entry-level labour warn of acute shortages, especially in agriculture and hospitality. Conversely, technology firms and provincial governments applauded the tilt toward high-skilled immigration, saying it aligns talent supply with long-term economic needs.
Practically, organisations that recruit or support international students must now plan around smaller, province-allocated visa quotas and stricter compliance audits. Employers using the Temporary Foreign Worker or International Mobility Programs should expect longer lead times, more Labour-Market Impact Assessment scrutiny and greater competition for the reduced quota space. Mobility managers are advised to front-load housing arrangements and explore permanent-resident pathways earlier in an assignee’s life-cycle to mitigate cap risks.
