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Recently, the PM of Canada, Justin Trudeau, lamented the challenges of rapid population growth in the last two years. According to him, the development has led to bad actors like fake colleges exploiting the immigration system. Big chain corporations are also using it for their interests. This development threatens Canada’s immigration policy, which aims to build a welcoming society where everyone can thrive. Canada is responding to new issues like a housing shortage and pressure on public services. The government is looking to ensure the economy grows sustainably for the future.

Immigration remains vital since it is responsible for almost all the workforce growth in Canada. However, given these new challenges, Canada has launched an updated Immigration Levels Plan. This plan focuses on better balancing temporary and permanent residency (PR) programs to suit the country’s changing needs.

So, what does this mean if you want to move to Canada? It might mean new pathways and considerations, especially for those applying through Express Entry or other PR options.

Temporary Resident Programs: The immigration Policy aims at a Shift Towards Balance and Sustainability

In recent years, temporary resident programs have surged. Over 60% of new arrivals enter as international students, temporary foreign workers, or through humanitarian channels. This influx of temporary residents supported the economy during the pandemic. However, rapid growth in this area has led to increased demand for housing and local services.

To address these concerns, the Canadian government has introduced the following measures:

  • Cap on International Students and Controls on Study Permits: Canada has implemented an immigration policy that tightens control on study permits. Graduates, therefore, need provincial attestation letters and work permits are limited. The policy has already decreased international student entries by 43% compared to last year. It has also eased housing pressures in cities like Toronto and Vancouver.
  • Temporary Foreign Worker Program Adjustments: Companies hiring low-wage foreign workers now face reinstated restrictions and controls, a return to pre-pandemic standards. The program fills only essential roles needing temporary foreign workers for sustainable growth.
  • Lower Temporary Resident Volumes: Canada aims to reduce the temporary population to 5% of the national total by 2026, with a steady decrease projected in the coming years. It aligns with prioritizing sustainable population growth and reducing strains on local communities and services.

Permanent Resident Programs: Prioritising Economic Needs Through Express Entry and In-Canada Applicants

With an aging population and ongoing labour shortages, critical sectors of Canada’s immigration policy remain committed. It focuses on welcoming skilled immigrants who can support economic growth. However, recognizing current housing and service challenges, the government has recalibrated its PR targets to match economic demand.

Express Entry and Economic Immigration Streams

Express Entry remains the core pathway for skilled workers seeking PR, but with critical new changes:

  1. Reduced Overall PR Targets: Canada is reducing its PR intake targets from 500,000 to 395,000 in 2025 and 365,000 by 2027. This reduction might relieve pressure on housing by reducing the overall need for an estimated 670,000 additional housing units.
  2. Priority for Temporary Residents Already in Canada: Over 40% of PR spots will go to temporary residents, such as international students and temporary workers. This strategy promotes a smoother transition for individuals already integrated into Canadian society and the workforce.
  3. Focus on Specific Labour Gaps: Adjustments in economic immigration streams—such as the Canadian Experience Class and Provincial Nominee Programs—will favor applicants with skills in high-demand areas like health care, construction trades, and technology, directly addressing labor shortages in these critical sectors.

Conclusion

In summary, Canada’s immigration policy prioritizes the balance between welcoming newcomers and addressing social and economic needs. The emphasis on reducing temporary resident volumes and adjusting PR targets reflects a commitment to managing population growth.

While these changes may limit the number of new entrants, they ensure that the immigration system maintains its integrity and offers quality opportunities for those who make Canada their home. For Express Entry applicants, these adjustments mean a more targeted, strategic approach, especially favouring individuals with skills suited to Canada’s immediate economic needs.

Please follow our Instagram page for updates and relevant insights on effectively navigating the application process in light of these new developments.

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