The Government of Canada will launch a new program to transition up to 33,000 work permit holders to permanent residence between 2026 and 2027, as part of the upcoming 2026–2028 Immigration Levels Plan.
This new pathway, introduced through Budget 2025, will form part of a broader shift in Canada’s immigration approach — balancing economic immigration growth with reduced temporary resident admissions.
Key Highlights from the Upcoming Plan
- 33,000 temporary workers to gain permanent residency over 2026–2027
- Temporary resident admissions target reduced to 385,000 for 2026 (down 43% from 2025)
- International student admissions target lowered to 155,000 (down 49%)
- Temporary foreign worker target set at 230,000 (down 37% from 2025, but up from 210,700 in last year’s plan)
- Continued PR pathways for Protected Persons in Canada
- Permanent residence target steady at 380,000 for 2026
- Economic immigration to account for 64% of total PR admissions (up from 59%)
The government also plans to address labour shortages in rural and remote areas and adapt to “industries impacted by tariffs,” according to statements accompanying Budget 2025, tabled by Prime Minister Mark Carney’s government on November 4, 2025.
Balancing Permanent and Temporary Admissions
While the 2026 Plan reduces temporary residence targets, it keeps the overall permanent resident admissions stable at 380,000 — signalling a more sustainable approach focused on transitioning temporary workers to PR rather than expanding temporary inflows.
The 2027 notional target for permanent residents will also increase slightly to 380,000, up 4% from last year’s 2027 target of 365,000.
Reduction of Temporary Resident Targets
Although 2026 targets appear lower, real-world admissions may not fall drastically. Temporary resident admissions in 2025 have lagged well behind targets:
- From January to August 2025, Canada admitted 154,515 temporary foreign workers — just 42% of the target.
- Over the same period, only 89,430 international students were admitted — 29% of the annual target.
This means the 2026 “reduction” largely reflects current realities, rather than introducing a sharp drop in practice.
Changes Coming to the Temporary Foreign Worker Program (TFWP)
Prime Minister Mark Carney has indicated that Canada’s Temporary Foreign Worker Program will become more targeted.
“The TFWP must have a focused approach that targets specific, strategic sectors, and needs in specific regions,”
said Carney during an address in Edmonton on September 10, 2025.
While Budget 2025 does not break down exact numbers between the TFWP and International Mobility Program (IMP), both are expected to be rebalanced in the 2026 Plan.
Work Permit Targets by Program
- 2025 targets: 285,750 (IMP) + 82,000 (TFWP)
- 2026 targets (previous plan): 128,700 (IMP) + 82,000 (TFWP)
- 2026 targets (new plan): Combined 230,000 — higher than last year’s projection (210,700)
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