The Canadian federal government’s latest three-year immigration plan represents a far smaller shift in policy than last year’s overhaul, says a report by RBC Economics.
The government is significantly reducing the number of temporary residents allowed into Canada. However, it’s also creating some exceptions that will increase the number of permanent residents through one-time fast-track programs—which should cushion the decline, said the report:
- Permanent resident admissions to rise 11% in 2026 from 2025 through one-time fast-tracking of protected persons.
- Temporary resident targets are slashed from previous targets, while timeline to reach 5% of population extended a year to the end of 2027.
- International student admissions are halved to 150,000 annually—the smallest allocation in at least a decade.
- Direct worker programs are prioritized over study-then-work pathways for faster labour market access.
“The government is further reducing the number of temporary residents allowed into Canada. However, it’s also creating some exceptions that will increase the number of permanent residents through one-time fast-track programs—which should cushion the decline,” said the RBC report.
“Officials have also extended their timeline for reducing Canada’s temporary residents to “less than 5%” of the total population, pushing the target date from 2026 to the end of 2027.
“The net effect of these changes shouldn’t impact our population growth projections for 2025, tracking just under 1%. Beyond this year, our forecasts already assumed milder outflows would bring temporary residents toward 5% of the population by the end of 2027—aligning with the government’s revised timeline.
“However, the timing of current temporary resident departures and various exemptions continue to add uncertainty to near-term population growth rates, and both permanent and temporary resident arrival targets will continue to be refreshed annually.
“Still, we continue to expect Canada’s population growth will slow close to zero in 2026 and 2027.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
About Us
Canada’s Entrepreneur is the number one community media platform in Canada for entrepreneurs and business owners. Established in 2016, our podcast team has interviewed over 800 Canadian entrepreneurs from coast-to-coast. With hosts in each province, entrepreneurs have a local and national format to tell their stories, talk about their journey and provide inspiration for anyone starting their entrepreneurial journey and well- established founders.
The commitment to a grass roots approach has built a loyal audience on all our social channels and YouTube – 500,000+ lifetime YouTube views, 250,000 + audio downloads, 50,000 + average monthly social impressions, 15,000 + engaged social followers and 120,000 newsletter subscribers. Canada’s Entrepreneur is proud to provide a local, national and international presence for Canadian entrepreneurs to build their brand and tell their story
