Canada to Reduce Temporary Residents and Revamp Immigration Rules

Immigration to several countries has faced significant challenges in recent years, and Canada, known for its welcoming stance on immigration, is no exception. In response to labour shortages, economic recovery needs, and shifting global conditions, the Canadian government has introduced a series of reforms aimed at better managing the influx of temporary residents.

According to a recent statement on the official website of Immigration, Refugees and Citizenship Canada (IRCC), “In response to labour shortages and the aftershocks of the pandemic, the federal government took steps to meet the urgent needs of businesses and support our economic recovery.

Since then, Canada’s economy has evolved, and we must continue to adapt our immigration system to respond to new pressures, including a softening labour market.” This announcement reflects the need for Canada to recalibrate its immigration strategy to ensure a sustainable and well-balanced approach.

Changes in the Post-Graduation Work Permit Program (PGWP)

One of the major changes focuses on the Post-Graduation Work Permit (PGWP) Program, which is a critical pathway for international students looking to transition from study to permanent residency. From November 1, 2024, all applicants for a PGWP will be required to meet new language proficiency standards. This includes a Canadian Language Benchmark (CLB) level 7 for university graduates and CLB 5 for college graduates in either English or French, Canada’s official languages.

These language requirements aim to improve the adaptability of international graduates to Canada’s evolving economy, increasing their chances of successfully transitioning to permanent residency. According to a post on the official IRCC website, “As part of changes to the PGWP Program, all applicants will be required to demonstrate a minimum language proficiency. This will increase their ability to transition to permanent residence and adapt to changing economic conditions.”

Additionally, international graduates from public colleges who complete programs linked to fields with long-term labour shortages will continue to be eligible for a PGWP of up to three years. This move is seen as a strategy to address gaps in key industries while managing the number of temporary residents.

Limiting Temporary Residence Numbers

Canada has also made it clear that it will reduce the number of temporary residents to ensure the immigration system remains sustainable. By 2026, the target is to decrease the percentage of temporary residents from 6.5% of the total population to 5%. This represents a deliberate shift in Canada’s approach to balance welcoming immigrants while addressing concerns about overburdening social services and the labour market.

Marc Miller, Minister of Immigration, Refugees and Citizenship, underscored this focus, stating, “The reality is that not everyone who wants to come to Canada will be able to—just like not everyone who wants to stay in Canada will be able to. We are taking action to strengthen our temporary residence programs and roll out a more comprehensive immigration plan to meet the demands of today’s changing landscape. Our immigration system must preserve its integrity, be well-managed, and sustainable.”

Other Key Immigration Changes

In addition to PGWP changes, several other immigration reforms have been announced to align Canada’s system with evolving national and global realities:

1. Reduction in International Student Study Permits
   By 2025, the number of study permits issued will be reduced by 10% compared to the 2024 target of 485,000. This means 437,000 study permits will be issued in 2025, with the intake cap stabilizing for 2026. This change is aimed at controlling the rapid growth of international students, especially in popular urban areas, to ensure better integration and support for both students and local communities.
2. Work Permit Eligibility Adjustments
   Canada has tightened the rules for spouses of foreign workers and students. From 2025, only spouses of master’s degree students enrolled in programs lasting at least 16 months will be eligible for work permits. Additionally, work permit eligibility for spouses of foreign workers will be limited to those employed in management or professional occupations or sectors with notable labour shortages. This change is intended to streamline labour market access for accompanying spouses in high-demand sectors.
3. Asylum Claims Adjustments
   The Canadian government also aims to tighten asylum claim procedures. This includes partial visa requirements for Mexican nationals, along with improved claims processing to ensure faster and fairer decisions. Furthermore, the decision-making process for visas will undergo review to boost efficiency and integrity.

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