OTTAWA — The federal government announced a major overhaul of its immigration strategy on Thursday, signalling a dramatic shift in policy as it prepares to significantly reduce the number of temporary residents entering the country over the next three years.
Immigration Minister Marc Miller, speaking alongside Prime Minister Justin Trudeau at a press conference in Ottawa, confirmed that the government will move to decrease the temporary resident population from roughly 6.5 per cent of Canada’s total population down to 5 per cent by 2027. This move marks the first time Ottawa has explicitly included temporary residents in its long-term immigration planning, effectively ending the era of open-ended growth that characterized the post-pandemic years.
“For years, we relied on a model that prioritized a high volume of temporary workers and international students to fill labour gaps and fuel economic growth,” Miller said. “But the landscape has shifted. We must now prioritize a system that is sustainable, integrated, and responsible in the face of housing and infrastructure pressures.”
The announcement follows months of mounting public pressure regarding the country’s deepening housing crisis and strained social services. Critics, including several provincial premiers, have long argued that the rapid influx of international students and temporary foreign workers has exacerbated rental shortages and outpaced the construction of essential infrastructure.
Under the new plan, the government will implement stricter caps on study permits and place tighter regulations on the Temporary Foreign Worker Program. Businesses that rely heavily on low-wage foreign labour will face more rigorous assessments, and the government intends to transition more of the current temporary resident population toward permanent residency rather than relying on constant renewals of temporary status.
“This is about calibration,” the Prime Minister stated. “We are committed to maintaining the strong immigration tradition that Canada is known for, but it must be done in a way that provides newcomers with the housing, services, and opportunities they deserve, while maintaining the stability of our communities.”
The policy shift is expected to have significant implications for Canadian colleges and universities, which have grown increasingly dependent on international student tuition fees. Education advocates warned that the sudden contraction in numbers could lead to severe funding shortfalls for post-secondary institutions, many of which have already begun bracing for a smaller pool of applicants.
Business associations have also expressed concern, with some industry leaders warning that the reduction in temporary workers could worsen labor shortages in the service, hospitality, and construction sectors—the very sectors currently struggling to keep pace with demand.
Opposition leaders were quick to weigh in, with Conservative Leader Pierre Poilievre slamming the move as “too little, too late.” He argued that the government’s mismanagement of the file had contributed to the high cost of living and the current affordability crisis.
The new targets are slated to take effect immediately, with the first quarterly review of the adjusted immigration levels expected later this summer.
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