Canada’s Immigration: What’s New in 2025?

As we navigate through the early months of 2025, Canada’s immigration policies are undergoing significant changes, reflecting a new approach to managing population growth and addressing economic and labour market needs. These changes, already in effect or soon to be implemented, are reshaping Canada’s immigration, population and economy.

Here’s an overview of key developments in Canadian immigration for 2025:

1. Reduced Permanent Resident Targets: The government has implemented a three-year plan between 2025-2027 to reduce the number of admitted permanent residents in Canada. Specifically, in 2025, the target has been reduced to 395,000, a 105,000 reduction from previous projections.
2. New Focus on In-Canada Applicants: Over 40% of permanent resident admissions in 2025 are expected to be students or workers already in Canada.
3. Stricter Eligibility for Spousal Open Work Permits: Starting January 21, 2025, only spouses of students in specific programs or workers in high-demand occupations will be eligible for open work permits.
4. Emphasis on Federal Economic Priorities: A larger share of economic admissions is allocated to skilled workers in critical sectors like healthcare and skilled trades.
5. Temporary Resident Caps: For the first time, the Immigration Levels Plan includes targets for temporary residents, including foreign workers and international students.
6. Pause on Population Growth: The government aims to stabilize population growth to allow time for infrastructure and social services to catch up

Reduced Immigration Targets

Permanent Residents

For the first time in recent years, Canada is implementing a substantial reduction in immigration targets. The 2025-27 Level Plan is set to decrease permanent resident admissions in 2025. The new plan aims to admit 395,000 permanent residents in 2025, down from 485,000 in 2024. This decrease is set to continue, with targets of 380,000 for 2026 and 365,000 for 2027.

This decision was made due to factors such as:

• Housing affordability: The pressure on the housing market, soaring prices, and limited availability due to Canada’s rapidly growing population.
• Public Service Capacity: Strains on education, healthcare and transportation systems.

Temporary Residents

Canada has announced a plan to decrease the number of temporary residents from seven (7) percent to five (5) percent of the total population over the next three years. Canada has seen an increase in temporary residents, including international students and foreign workers. Canada’s temporary population is expected to decline by:

• 445,901 in 2025, and
• 445,662 in 2026, and
• will be followed by a modest increase of 17,439 in 2027.

In response to the concerns regarding housing shortages and public service strains, the government is implementing new measures to reduce these numbers, including;

• International Student Cap: Introducing limits to study permits to alleviate housing market pressures.
• Increasing Costs of Financial Support Requirement: Minimum $20,635 (CAN), in addition to an applicant’s cost of tuition and travel costs.
• Reassessing the Temporary Foreign Worker Program: Stricter eligibility to ensure foreign workers fill only critical roles.

These changes have significant implications for educational institutions that rely heavily on international students’ tuition fees and several industries that depend on foreign workers.

Impact on Provincial Nominee Program (PNP)

The Provincial Nominee Program (PNP) is a cornerstone of Canada’s economic immigration strategy, allowing provinces to nominate candidates who meet their specific labour market needs. However, the federal government has drastically reduced PNP admissions for 2025, capping the number at 55,000, down from a planned 120,000.

This reduction will have far-reaching implications:

• Regional Disparities: Provinces such as Manitoba and Saskatchewan, which rely heavily on the PNP to attract workers for agriculture and healthcare, may face significant challenges in filling these roles.
• Economic Impacts: The program could slow economic growth in regions dependent on Immigration for workforce development.

Provinces must find innovative solutions to manage labour shortages while operating within these revised quotas.

Removing Job Offer Points in the Express Entry System

To reduce fraudulent immigration applications, Marc Miller, Minister of IRCC, announced that Express Entry candidates would no longer receive additional points for a job offer. This temporary measure will reduce fraud by removing the incentive to buy or sell illegal LMIAs to improve a candidate’s chance of being selected to enter Canada as a permanent resident. This change will come into effect in spring 2025. This change will impact applicants who are in the system and have not received an invitation.

However, this change will not affect candidates who have already received an invitation to apply or those with applications in progress.

Reducing Flagpoling at the Border

Flagpoling occurs when foreign nationals with temporary resident status in Canada leave Canada and immediately re-enter to access immigration services at a port of entry, such as applying for a work or study permit or confirmation of permanent residence. However, the government of Canada has announced a Canada Border Plan to reduce border applications.

Therefore, applications must be online for a new or extended work or study permit.

Temporary Pause on Parent and Grandparent Sponsorship Program

Canada’s Parent and Grandparent Program (PGP) allows sponsorship of parents and grandparents for permanent residency. However, the program is currently paused for 2025 due to a significant application backlog since 2020. This means the following:

• No new applications will be accepted or processed in 2025.
• Immigration, Refugees and Citizenship Canada (IRCC) will focus on processing applications submitted in 2024.
• IRCC plans to process 15,000 applications from 2024 during 2025.

Promoting Business Immigration

In 2025, Canada is shifting its focus to business immigration to offer pathways for entrepreneurs and investors.

Federal Business Immigration Programs

The Start-Up Visa (SUV) program offers a pathway to permanent residency for individuals who establish businesses that create jobs and compete globally. Applicants must secure support from a designated organization—such as a venture capital fund, angel investor group, or business incubator—and meet language proficiency and settlement fund requirements.

Provincial Business Immigration Streams

Despite the closure of Ontario’s Entrepreneur Stream, other provinces continue to operate business immigration programs:

• British Columbia: The Entrepreneur Immigration Stream targets experienced business people ready to invest in and actively manage a business in the province. The program includes categories for regional entrepreneurs and strategic projects, each with specific criteria and investment thresholds.
• Alberta: The Self-Employed Farmer Stream is designed for individuals with farming experience and sufficient funds to purchase and develop a farm in Alberta. Applicants must demonstrate the ability to manage a farm and contribute to the province’s agricultural sector.
• Manitoba: The Business Investor Stream offers pathways for entrepreneurs and farm investors. Applicants must submit a business plan, have a minimum net worth, and invest significantly in a new or existing business.

Prioritizing Francophone Immigration

Canada’s new Immigration Level Plan introduces new targets for French-speaking residents outside Quebec in 2025. The targets will be:

• 8.5% in 2025
• 9.5% in 2026, and
• 10% in 2027 for overall permanent resident admissions.

The efforts to increase Francophone Mobility will launch in 2025 and are set to attract foreign-skilled workers.

New Pilot Immigration Programs

Canada is set to introduce new immigration programs in 2025 to help meet Canadian labour market demands, including;

• Enhanced Caregiver Pilot Program: To attract more caregivers, such as home childcare workers and home support workers, to meet Canada’s growing demand. Successful applicants will receive permanent residency upon arrival, making residency easier in Canada.
• Rural Community Immigration Pilot Program: To target professionals willing to live and work in smaller, rural communities across Canada. These communities have a high demand for skilled workers to fill labour shortages.
• Francophone Community Immigration Pilot Program: This program attracts French-speaking professionals to work in small communities outside Quebec. This will help strengthen Canada’s economy and increase Francophone communities across Canada.
• Manitoba’s West Central Immigration Initiative Pilot Program: To attract skilled workers willing to live and work in Manitoba’s West Central region to meet labour market demands. Potential candidates may be invited to apply for permanent residency.

Takeaway

While these changes are being made in response to challenges Canada has faced regarding housing, public services, and public opinion, they also pose risks to Canada’s economy and reputation as a top destination for immigrants. As Immigration in Canada continues to evolve, we will provide updates in 2025 to inform and discuss these new policy adjustments.

If you would like to review immigration options available to you, your friends or family, we strongly encourage you to contact Sultan Lawyers  online or by telephone at 416-214-5111.