Canada Immigration Target Reduction in 2026: What You Need to Know
Summary of Key Points:
Canada has announced plans to adjust its immigration targets for 2026, aiming for sustainable growth and long-term economic stability. The new targets are significantly lower than in previous years, and are projected to result in a marginal population decline of 0.2%. These reductions will affect both permanent and temporary residents, with a strong emphasis on prioritizing in-Canada applicants. As a potential newcomer to Canada, you might experience increased competition, longer processing times, and stricter eligibility requirements. Panel Physician has tips to help improve your chances of success.
Updated December 2025
Estimated Reading Time: ~7 minutes
What You’ll Learn:
Why Canada is reducing immigration targets in 2026
How permanent and temporary residents quotas are changing
Which applicant groups will be prioritized in the coming year
How reduced targets may affect competition, wait times, and eligibility
What newcomers to Canada should do to strengthen their chances of approval
Next Steps:
Start your application early
Monitor immigration policy updates closely
Prepare documents and eligibility requirements ahead of time
Schedule your IME as early as possible with a certified Panel Physician
Canada Plans Immigration Target Reductions in 2025: Here’s What You Need to Know
Since 2017, the Minister of Immigration, Refugees and Citizenship Canada (IRCC) has announced an Immigration Levels Plan—a 3-year snapshot of immigration targets. These targets are government policies that will limit the number of people who can immigrate to Canada.
In 2025, Canada announced plans to adjust its immigration targets for 2026, signaling a departure from the record-high levels set in recent years. These changes reflect a recalibration aimed at addressing domestic capacity challenges, such as housing shortages and healthcare system strain. Our Panel Physician experts provide an in-depth look at the revised targets, their implications, and strategies for prospective immigrants.
Learn More:
Background on the Immigration Levels Plan
As part of the Immigration Levels Plan, the Canadian government can reduce the number of temporary and permanent residents, study permits, and prioritize in-Canada applicants. Here are some reasons behind the immigration target reductions:
Manage population growth
Achieve sustainable economic growth
Address concerns about overpopulation, national identity, and culture
Target Reduction Plans for Immigration in 2026
In 2026, Canada plans to reduce its immigration targets, scaling back from previously ambitious goals and hopes to achieve sustainable growth and long-term economic prosperity. For the first time, the government has also included level plans for temporary residents. According to IRCC, the Immigration Levels Plan is expected to result in a marginal population decline of 0.2% for 2026.
Permanent Residents
After consistent increases between 2021 and 2024, it seems the government has shifted priorities.
2026 Target for Permanent Residents: Approximately 380,000. The 2025 Target was 420,000 and the 2024 Target was 485,000.
This plan will prioritize in-Canada applicants and pathways for those already here—more than 40% of anticipated permanent resident admissions in 2026 will be from temporary residents. Research proves that newcomers with in-Canada experience have positive long-term success and can continue to support the workforce and economy without placing additional demands on social services.
Between 2026 and 2028, approximately 64% of total permanent resident admissions will be dedicated to the economic class, like healthcare and trades, and nearly 22% will be allocated to the family class—allowing more families and loved ones to reunite. As well, a target of 10.5% has been set for Francophone admissions destined for outside of Quebec by 2028. Refugees and asylum seekers may be affected by these new targets, but humanitarian commitments will remain as a guiding principle.
Temporary Residents
2026 Target for Temporary Residents: Aiming for a decline of ~385,000 (representing less than 5% of the total population).
This target will lessen the number of new workers and international students arriving in Canada and tighten eligibility requirements for temporary foreign workers and work permits for spouses of international students. This includes temporary residents in the Post-Graduation Work Permit Program (PGWPP), International Mobility Program, and the Temporary Foreign Worker Program. A number of factors were considered when assessing a target amount for temporary residents:
The number of individuals expected to depart Canada in each program (when a permit expires)
Individuals transitioning to permanent residents
Approval rates for each program
Estimated renewal rates
Learn More:What to Expect as a New Refugee in Canada (Step by Step)
How the Target Reductions Will Affect Newcomers
As mentioned above, these target reductions affect many different types of residents and newcomers. Here are a few things that newcomers should be aware of when applying for immigration.
Increased Competition: Fewer spots will lead to higher application volumes per quota, raising the bar for eligibility criteria.
Longer Wait Times: Reduced targets may result in processing backlogs, particularly in high-demand streams like Express Entry.
Stricter Eligibility Criteria: Applicants may need higher language test scores, more work experience, or enhanced credentials to remain competitive.
Application Strategies: Early submission and ensuring application completeness will be more critical than ever.
In order to stay ahead of the immigration process, we highly encourage newcomers to do these 3 simple things:
Start your application early. With reduced quotas, starting your application process well in advance is essential to secure your spot.
Stay informed by regularly monitoring updates on immigration policies to adapt your strategy to changing requirements.
Prepare for and schedule your Immigration Medical Exam early. The IME is a mandatory requirement for most immigration streams, so you want to ensure your medical exam is completed accurately and promptly to avoid delays or disqualification. Our medical team at Panel Physician can help ensure your medical requirements are completed without complications.
Get Started on Your Immigration Process
Canada’s revised immigration targets for 2026 may pose some challenges, but early preparation and strategic planning can improve your chances of success. Contact your nearest Panel Physician location to schedule your IME and take the first step toward achieving your immigration goals.
