Canada’s long-promised shift from rapid immigration growth to what Immigration, Refugees and Citizenship Canada (IRCC) calls a “stable, sustainable system” formally began on 2 February 2026, when details of the 2026-2028 Immigration Levels Plan became public. Under the plan, permanent-resident admissions will dip slightly to 380,000 a year—down from 395,000 in 2025—while new temporary resident arrivals will fall much faster, from last year’s 455,000 to 385,000 in 2026 and 370,000 in both 2027 and 2028. (thegauntlet.ca)
Why the sudden belt-tightening? In its 2025 Annual Report to Parliament, the government acknowledged that temporary residents had ballooned from 3.3 percent of Canada’s population in 2018 to 7.5 percent by mid-2025, fuelling housing shortages, straining health-care capacity and overloading post-secondary campuses. IRCC therefore set an explicit objective: push the temporary footprint below 5 percent by the end of 2027 while focusing permanent-residence spots on workers already in Canada. (thegauntlet.ca)
![Ottawa Begins Immigration ‘Right-Sizing’ With New 2026-28 Levels Plan]()
Navigating these shifting rules can be daunting. VisaHQ’s Canada portal (https://www.visahq.com/canada/) tracks policy updates in real time and provides step-by-step assistance for study permits, work visas and electronic travel authorizations, helping employers, students and skilled workers file accurate applications and avoid costly delays.
For employers, the most immediate impact will be tighter caps on employer-specific work permits (230,000 in 2026) and a dramatic 50-percent cut in new study-permit approvals (155,000 in 2026). Industries that rely on seasonal or low-wage staff—agriculture, hospitality and retail—face the greatest hiring pressure and may need to accelerate automation or recruit domestically. Universities are bracing for revenue losses, particularly in Ontario and British Columbia where international tuition now funds up to one-third of operating budgets. (thegauntlet.ca)
At the same time, IRCC is carving out exemptions to keep high-value talent flowing. Master’s and doctoral students no longer require provincial attestation letters and can access a new 14-day priority study-permit channel. Employers recruiting in-Canada workers can expect quicker pathways to permanent residence through the Express Entry system and the Provincial Nominee Programs (PNPs). In short, Ottawa is signalling a pivot from volume to selectivity: fewer newcomers overall, but better aligned with labour-market needs and infrastructure capacity. (thegauntlet.ca)
Why the sudden belt-tightening? In its 2025 Annual Report to Parliament, the government acknowledged that temporary residents had ballooned from 3.3 percent of Canada’s population in 2018 to 7.5 percent by mid-2025, fuelling housing shortages, straining health-care capacity and overloading post-secondary campuses. IRCC therefore set an explicit objective: push the temporary footprint below 5 percent by the end of 2027 while focusing permanent-residence spots on workers already in Canada. (thegauntlet.ca)
Navigating these shifting rules can be daunting. VisaHQ’s Canada portal (https://www.visahq.com/canada/) tracks policy updates in real time and provides step-by-step assistance for study permits, work visas and electronic travel authorizations, helping employers, students and skilled workers file accurate applications and avoid costly delays.
For employers, the most immediate impact will be tighter caps on employer-specific work permits (230,000 in 2026) and a dramatic 50-percent cut in new study-permit approvals (155,000 in 2026). Industries that rely on seasonal or low-wage staff—agriculture, hospitality and retail—face the greatest hiring pressure and may need to accelerate automation or recruit domestically. Universities are bracing for revenue losses, particularly in Ontario and British Columbia where international tuition now funds up to one-third of operating budgets. (thegauntlet.ca)
At the same time, IRCC is carving out exemptions to keep high-value talent flowing. Master’s and doctoral students no longer require provincial attestation letters and can access a new 14-day priority study-permit channel. Employers recruiting in-Canada workers can expect quicker pathways to permanent residence through the Express Entry system and the Provincial Nominee Programs (PNPs). In short, Ottawa is signalling a pivot from volume to selectivity: fewer newcomers overall, but better aligned with labour-market needs and infrastructure capacity. (thegauntlet.ca)
