Canada is making a significant change in its immigration targets, with plans to decrease the number of permanent residents in the coming years. The federal government is set to reduce the annual immigration targets to 395,000 in 2025, 380,000 in 2026, and 365,000 in 2027 from 485,000 this year. This decision comes as Prime Minister Justin Trudeau is expected to make an announcement on Thursday morning.
Immigration Minister Marc Miller had hinted at the possibility of reducing the number of permanent residents while preparing the Immigration Levels Plan. This plan, which is typically announced by November 1st, sets out the targets for the next three years. The reduction in immigration targets is a rare move for Canada, as they have generally maintained or increased the targets over the past decade.
The decision to decrease immigration targets comes at a time when job vacancies are declining, unemployment is rising, especially among newcomers and younger individuals, and concerns about affordability are growing. Immigration plays a crucial role in the country’s economy, with newcomers contributing significantly to various industries. Additionally, Canada’s aging population highlights the importance of immigration in maintaining a healthy workforce.
Economists and business associations have expressed differing opinions on the government’s decision to reduce immigration targets. While some, like the Canadian Chamber of Commerce and Bank of Nova Scotia economist Rebekah Young, anticipate the targets to come down, others like Benjamin Tal from CIBC World Markets Inc. are not expecting major changes. Bank of Montreal chief economist Douglas Porter found it intriguing that Ottawa is reconsidering its permanent residency targets, indicating a potential shift in immigration policies.
In addition to reducing permanent residents, the government has also made cuts to the number of temporary residents allowed into the country. This includes a cap on temporary residents and restrictions on work permit eligibility for graduates and their spouses. The recent decrease in international study permits and limits on temporary foreign workers entering the country are part of the government’s efforts to manage immigration levels.
Overall, the decision to decrease immigration targets reflects a shift in Canada’s immigration policies in response to changing economic conditions and demographic trends. The government’s focus on managing both permanent and temporary residents aligns with the goal of ensuring sustainable growth and addressing the evolving needs of the workforce.
