The recent changes in Canada’s 2025-2027 Immigration Levels Plan have prompted discussions on the country’s approach to economic immigration. Although Canada remains committed to welcoming skilled workers to bolster the labour force and economy, some categories have seen significant shifts, notably the Provincial Nominee Program (PNP), which has experienced major reductions in target numbers.
Economic Immigration Reduction in the 2025-2027 Plan
Economic immigration targets have been scaled back by 30% compared to previous projections, with the 2025 target lowered from 395,000 to 365,000. Much of this reduction impacts the PNP, though there remains a target of 82,980 for Express Entry candidates who are already in Canada, especially within the Canadian Experience Class category.
A Balanced Strategy for Sustainable Growth
The 2025-2027 Immigration Levels Plan takes a conservative approach to immigration, prioritising sustainability and resource management. In contrast to the prior 2024-2026 plan, which aimed for a gradual increase in admissions to 500,000 by 2025, the new targets are set at 395,000 in 2025, tapering to 365,000 by 2027. This approach aims to balance growth with Canada’s housing, healthcare, and community infrastructure capacities.
Significant Reductions in Economic and Other Categories
Several immigration categories, including the PNP and the Federal Business stream, have seen marked reductions in targets. Economic admissions are now focusing on applicants already in Canada, particularly through the Canadian Experience Class, to streamline processing and support those with established ties to Canada. Family reunification and refugee admissions have also been scaled back, signalling a shift towards balancing humanitarian goals with available resources.
Supporting Francophone and Regional Communities
An essential component of the plan is to promote Francophone immigration outside of Quebec, with the goal for French-speaking immigrants to represent 10% of admissions by 2027. Regional programs like the Atlantic Immigration Program (AIP) and the Rural and Northern Immigration Pilot (RNIP) are designed to help spread the benefits of immigration to underserved regions, addressing labour shortages and fostering economic development in rural communities.
Economic and Workforce Implications
The new immigration plan is expected to stimulate Canada’s economy by attracting skilled workers for sectors with high demand, such as healthcare, construction, and trades. By focusing on immigrants with the skills needed for these industries, Canada positions immigration as a means to drive economic growth and productivity. The plan also supports pathways to permanent residency for skilled temporary residents, with over 40% of 2025 admissions expected to come from those already residing in Canada, thus stabilising the workforce and easing the strain on social services.
Impact on Express Entry: New Federal Economic Priorities
Changes to Express Entry include the introduction of two new categories: “Federal Economic Priorities” and “In-Canada Focus,” replacing the previous “Federal High Skilled” category. The combined target for these categories has risen to 124,680, a 12.55% increase from the previous target of 110,770. The new structure prioritises specific fields, including 35 healthcare roles, 10 trade occupations, and French-speaking candidates.
Provincial Nominee Program (PNP) Allocation Reductions
The plan brings substantial reductions to PNP quotas, affecting immigrants who relied on provincial pathways for permanent residency, especially those with lower Comprehensive Ranking System (CRS) scores. This shift means that PNPs in provinces like Ontario, British Columbia, and Alberta may see fewer spots, potentially resulting in longer processing times and higher rejection rates for students and skilled workers. These changes may also reflect a federal effort to assert control over immigration policy, which could create tension with provinces that have been hesitant to accept additional refugee claimants.
A Commitment to Sustainable Growth
Overall, the 2025-2027 Immigration Levels Plan underscores Canada’s dedication to balanced growth, economic stability, and regional diversity while managing infrastructure demands. Through these strategic adjustments, Canada aims to address labour needs, drive economic output, and continue building a diverse population, all while fostering an inclusive and sustainable society.
