Canada to Slash Temporary Resident Intake by 43% Amid Immigration System Overhaul

Canada will significantly reduce its intake of temporary residents — including international students and foreign workers — by nearly 43% between 2026 and 2028, according to the new immigration levels plan unveiled in the Federal Budget. The move marks one of the sharpest cuts to temporary immigration in recent years as the government aims to restore balance to its immigration system.
Under the revised plan, the number of international students admitted annually will drop from the previous target of 305,000 to 155,000 by 2026, further declining to 150,000 in 2027 and 2028. Similarly, new work permits issued under the Temporary Foreign Worker Programme (TFWP) and International Mobility Program (IMP) will decline to 220,000 by 2028. The total number of temporary residents is projected to fall from 673,650 in 2025 to around 370,000 by the end of the decade.
Indians — the largest cohort of temporary residents — will be significantly affected, as they currently make up over 20% of temporary foreign workers and more than 36% of international students. Immigration Minister Lena Metlege Diab said the government aims to bring temporary resident levels below 5% of the population by 2027, focusing instead on long-term economic immigration pathways.
While the temporary resident categories face steep reductions, permanent resident (PR) admissions will remain relatively stable, with targets declining only slightly from 395,000 in 2025 to 380,000 by 2028. The government emphasized that nearly 65% of new PRs will belong to the economic class by 2027, reflecting a focus on addressing labor market needs.
Canada also plans to introduce an accelerated immigration pathway for skilled talent affected by the United States’ new $100,000 H-1B visa fee, signaling an effort to attract global professionals amid tighter domestic controls.