In a significant policy pivot unveiled this week, Immigration Minister Lena Diab confirmed that Canada’s next three-year Immigration Levels Plan will prioritise converting temporary residents—international students, work-permit holders and protected persons—into permanent residents. While the overall permanent-resident target is set to stabilise at 380,000 per year, IRCC will reserve 64 % of 2026 spaces for economic immigrants, with particular emphasis on candidates who already have Canadian work or study experience.
Express Entry remains the flagship pathway, though high-skilled quotas dip slightly to 109,000 in 2026 before rebounding. The bigger story is the dramatic expansion of the Provincial Nominee Program, which will jump from 55,000 spaces this year to 91,500 in 2026—a 66 % increase. Provinces will be able to nominate workers and graduates already embedded in their local economies, giving employers more certainty that critical talent can stay. One-time measures will also fast-track 33,000 rural and in-demand workers and grant PR to up to 115,000 protected persons over two years.
![Ottawa’s 2026-2028 Immigration Plan will favour temporary residents already in Canada]()
For businesses, the message is clear: retaining existing foreign talent will get easier than recruiting from abroad. HR departments should audit their foreign-worker populations and encourage eligible staff to pursue permanent residence under the Canadian Experience Class or provincial streams. Recruiters may also need to rethink global sourcing strategies as temporary-resident quotas (students and foreign workers) shrink by more than 40 % in 2026.
Provincial governments, particularly in Atlantic Canada and the Prairies, have applauded the higher PNP ceilings, arguing they will help address ageing demographics and regional labour shortages. Settlement agencies, however, warn that funding formulas must catch up to ensure newcomers receive adequate housing and integration services.
Strategically, the plan seeks to balance public concern over rapid population growth with employers’ need for talent. By favouring candidates already vetted through study or work permits, Ottawa aims to reduce backlogs, curb fraud and improve labour-market outcomes—while signalling to the world that Canada still welcomes skilled migrants prepared to put down roots.
Express Entry remains the flagship pathway, though high-skilled quotas dip slightly to 109,000 in 2026 before rebounding. The bigger story is the dramatic expansion of the Provincial Nominee Program, which will jump from 55,000 spaces this year to 91,500 in 2026—a 66 % increase. Provinces will be able to nominate workers and graduates already embedded in their local economies, giving employers more certainty that critical talent can stay. One-time measures will also fast-track 33,000 rural and in-demand workers and grant PR to up to 115,000 protected persons over two years.
For businesses, the message is clear: retaining existing foreign talent will get easier than recruiting from abroad. HR departments should audit their foreign-worker populations and encourage eligible staff to pursue permanent residence under the Canadian Experience Class or provincial streams. Recruiters may also need to rethink global sourcing strategies as temporary-resident quotas (students and foreign workers) shrink by more than 40 % in 2026.
Provincial governments, particularly in Atlantic Canada and the Prairies, have applauded the higher PNP ceilings, arguing they will help address ageing demographics and regional labour shortages. Settlement agencies, however, warn that funding formulas must catch up to ensure newcomers receive adequate housing and integration services.
Strategically, the plan seeks to balance public concern over rapid population growth with employers’ need for talent. By favouring candidates already vetted through study or work permits, Ottawa aims to reduce backlogs, curb fraud and improve labour-market outcomes—while signalling to the world that Canada still welcomes skilled migrants prepared to put down roots.
