OTTAWA — The federal government has officially signaled a major shift in immigration policy, announcing plans to significantly curb the number of permanent residents welcomed into Canada over the next three years. Prime Minister Justin Trudeau, joined by Immigration Minister Marc Miller, confirmed the move on Thursday, marking a sharp departure from the aggressive growth targets that have defined the Liberal government’s approach since 2015.
Under the new plan, Canada will reduce its immigration targets to 395,000 in 2025, down from the previously planned 500,000. This downward trajectory is set to continue, with targets dropping to 380,000 in 2026 and leveling off at 365,000 by 2027. For the first time in recent history, the government is also accounting for the temporary resident population, aiming to reduce the number of people on non-permanent visas—including international students and temporary foreign workers—to five percent of the total population.
“We didn’t get the balance right,” the Prime Minister acknowledged during the press conference. “Between the pandemic and the post-pandemic, we saw a massive increase in the volume of newcomers, but our infrastructure and housing capacity didn’t keep pace.”
The policy pivot comes amid mounting political pressure. Recent polling suggests that public sentiment toward high immigration levels has soured as the country grapples with an acute housing affordability crisis, strained healthcare resources, and a cooling labor market. Conservative leader Pierre Poilievre has frequently attacked the government for its immigration record, linking it to the skyrocketing cost of rent and the lack of available housing supply.
Economists have expressed mixed reactions to the news. While some argue that reducing immigration could ease the immediate pressure on urban housing markets and infrastructure, others warn that Canada’s aging demographic profile relies heavily on newcomers to fill essential labor shortages. Business advocacy groups have raised concerns that cutting the flow of workers could dampen economic growth just as the Bank of Canada attempts to stabilize the national economy.
Minister Miller emphasized that the move is intended to ensure “sustainable” growth. The government plans to pivot its focus toward retaining those already in the country, prioritizing applicants who are already working in high-demand sectors such as skilled trades and healthcare.
The announcement has sent shockwaves through immigrant advocacy groups, who argue that newcomers are being unfairly scapegoated for systemic policy failures in housing and public services.
As the government prepares to shift gears, the political focus will now turn to whether these reductions will be enough to appease voters ahead of the next federal election, which must be called by October 2025. For now, the administration is betting that a “slower, more controlled” immigration system will provide the breathing room necessary to stabilize the country’s social fabric.
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