Leaked details from Ottawa’s forthcoming 2026-2028 Immigration Levels Plan show a dramatic reset of Canada’s temporary-resident strategy. According to documents obtained by Yahoo News, annual study-permit allocations will plunge from the 306,000 envisaged last year to 155,000—roughly half—over the next three years. Work-permit caps for temporary foreign workers will also fall, although economic-class permanent-resident targets inch up to 239,800 in 2026.
The move follows months of pressure from provincial housing ministers and the Bank of Canada, who blame surging international enrolment for tight rental markets and higher inflation. Colleges warn that the cuts will carve billions of dollars out of their budgets, particularly in Ontario and British Columbia where foreign students can account for 40 % of tuition revenue. Some institutions are already preparing programme closures and staff layoffs.
For employers, fewer student visas will translate into a smaller pool of Post-Graduation Work Permit (PGWP) holders—traditionally an on-ramp to permanent residence and a critical talent source for sectors such as IT and hospitality. Immigration lawyers predict fiercer competition for co-op and internship placements that underpin PGWP eligibility.
![Budget Preview Reveals 50 % Cut to Student Visas in 2026–28 Immigration Plan]()
International applicants who still plan to study or work in Canada can simplify the visa process by using VisaHQ’s online platform, which offers real-time guidance, document checklists and application submission services for study permits, work permits and other travel documents. Explore how VisaHQ can help at https://www.visahq.com/canada/.
IRCC argues the reset is necessary to bring the temporary-resident population below 5 % of Canada’s total by 2027. Officials say priority processing will focus on STEM researchers and rural health-care professionals, while families and refugees also face modest quota reductions. The department promises further details when the full plan is tabled in Parliament later this month.
Multinational employers should revisit campus hiring plans and consider using the Global Skills Strategy or intra-company transfer routes to secure early-career talent. Educational institutions, meanwhile, must diversify revenue streams and sharpen admission standards to compete for a smaller cohort of international students.
The move follows months of pressure from provincial housing ministers and the Bank of Canada, who blame surging international enrolment for tight rental markets and higher inflation. Colleges warn that the cuts will carve billions of dollars out of their budgets, particularly in Ontario and British Columbia where foreign students can account for 40 % of tuition revenue. Some institutions are already preparing programme closures and staff layoffs.
For employers, fewer student visas will translate into a smaller pool of Post-Graduation Work Permit (PGWP) holders—traditionally an on-ramp to permanent residence and a critical talent source for sectors such as IT and hospitality. Immigration lawyers predict fiercer competition for co-op and internship placements that underpin PGWP eligibility.
International applicants who still plan to study or work in Canada can simplify the visa process by using VisaHQ’s online platform, which offers real-time guidance, document checklists and application submission services for study permits, work permits and other travel documents. Explore how VisaHQ can help at https://www.visahq.com/canada/.
IRCC argues the reset is necessary to bring the temporary-resident population below 5 % of Canada’s total by 2027. Officials say priority processing will focus on STEM researchers and rural health-care professionals, while families and refugees also face modest quota reductions. The department promises further details when the full plan is tabled in Parliament later this month.
Multinational employers should revisit campus hiring plans and consider using the Global Skills Strategy or intra-company transfer routes to secure early-career talent. Educational institutions, meanwhile, must diversify revenue streams and sharpen admission standards to compete for a smaller cohort of international students.
