Key Updates to Immigration Rules for 2025

Canada Adjusts Immigration Policies for 2025: Key Changes and Impacts

Canada’s federal government is pivoting on immigration policies with tighter limits on newcomers and revised rules for both permanent and non-permanent residents.

The shift follows years of accelerated population growth attributed to increased immigration aimed at addressing labor shortages during the COVID-19 recovery. Prime Minister Justin Trudeau acknowledged in a November address that while post-pandemic labor demands have eased, the government was slow to respond.

Lower Immigration Targets

In 2025, Canada will reduce its intake of immigrants for the first time since the pandemic:

• Permanent resident (PR) targets: 395,000, down from 500,000.
• Long-term goals: 380,000 in 2026 and 365,000 in 2027.

Temporary residents (NPRs) will also see changes, including reducing their proportion in the population from 6.5% to 5%. This year alone, Canada plans to decrease the NPR population by approximately 445,000.

Changes to PR Pathways

Over 40% of new PRs in 2025 will be current NPRs, as part of the government’s “in-Canada focus.” The majority will be economic immigrants, followed by family reunifications and refugees. The percentage of French-speaking PRs outside Quebec is also expected to grow, aligning with long-term linguistic goals.

Revised Rules for Temporary Workers

New rules aim to address misuse of programs like the Temporary Foreign Worker (TFW) and International Mobility Programs:

• Spouses of workers and students face tighter work permit eligibility.
• Post-graduate work permits will require applicants to align with labor shortages and meet new language standards.
• Employers hiring low-wage TFWs will face stricter caps and wage requirements.

These changes could reduce post-graduate work permits by 175,000 over the next three years.

Limits on International Students

Caps introduced in early 2024 will reduce study permit approvals to 437,000, with further restrictions on advanced degree applicants. International students will also face stricter working-hour caps, which have fluctuated post-pandemic.

Visitor Visa Restrictions

The federal government is ending the routine issuance of 10-year, multiple-entry visas. New guidelines give visa officers case-by-case discretion. Additionally, a pandemic-era policy allowing visitors to apply for work permits while in Canada has been discontinued.

Broader Impacts on Housing and Public Opinion

IRCC projects a slight population decrease over the next two years, followed by modest growth in 2027. With fewer immigrants, the housing supply gap could shrink by 670,000 homes.

However, public trust in the government’s ability to manage immigration remains strained, particularly given the complex ties between housing and immigration. Restoring confidence in the system is expected to take time.

For more details, visit Immigration, Refugees and Citizenship Canada’s website.