Study permits, work visas under scrutiny in Canada's new immigration plan

Business Standard

05-05-2025

Canadian Prime Minister Mark Carney laid out his immigration plans at his first post-election press conference on May 3, 2025, four days after securing a minority mandate in the April 28 election. With the country facing pressure on housing and public services, the question many had was: What will his government do about immigration?
Carney said his government would return immigration to 'sustainable levels' by capping temporary workers and international students at 5 per cent of the total population by 2028, down from the current 7.3 per cent.
Carney said the move, originally promised by former immigration minister Marc Miller, would ease pressure on housing and social services. 'Immigration caps will remain until we expand housing and better understand immigration patterns during the pandemic,' he said.
Carney criticised the previous Liberal government for allowing immigration to grow rapidly after the pandemic, arguing that the country had not kept pace with housing and support services.
'We have not lived up to the bargain with new immigrants,' he said during his election campaign in March.
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The government plans to stabilise the number of permanent residents at less than 1 per cent of Canada's population each year beyond 2027.
The Immigration Levels Plan 2025–2027 targets:
395,000 permanent residents in 2025
380,000 in 2026
365,000 in 2027
This represents a sharp reduction from the earlier target of 500,000. According to the government, steady immigration levels will relieve pressure on housing, healthcare, and social services, benefiting both newcomers and Canadian residents.
Although the targets were first announced under the Trudeau government, Carney has confirmed his party will stick to them.
Temporary residents face new restrictions
The number of temporary residents—covering international students, foreign workers, and others—has increased sharply. As of January 2025, there were around 3.02 million temporary residents, accounting for roughly 7.25 per cent of Canada's total population of 41.5 million.
Under the new plan, this figure will be cut to under 5 per cent by 2028.
The measures include:
Capping the number of study permit applications
Tightening eligibility for Post-Graduation Work Permits (PGWPs)
Ending Spousal Open Work Permits (SOWPs)
Carney said new applicants would face stricter entry conditions, though some already in Canada would have new opportunities to transition to permanent residency.
'We must build more houses using Canadian skilled workers and Indigenous people,' Carney said, urging political parties to work together.
Focus on francophone immigration
Carney has also pledged to increase francophone immigration outside Quebec.
Targets have been set at:
8.5 per cent in 2025
9.5 per cent in 2026
10 per cent in 2027
The goal is to reach 12 per cent by 2029 to support French-speaking communities across the country.
Support for skilled migration
Carney said he would revamp the Global Skills Strategy to attract top international talent. The scheme allows businesses to hire skilled foreign workers with two-week work permit processing.
Plans are also underway to speed up the recognition of foreign qualifications in collaboration with provinces and territories. The Liberals have promised to modernise immigration systems, reduce processing delays, and improve support for asylum seekers by providing access to legal aid.
The party also plans to strengthen border controls, tighten visa screening, and work closely with Quebec to manage regional immigration needs.
Darshan Maharaja, a Canada-based immigration analyst, said Carney's platform suggested no drastic changes for prospective immigrants, students, or workers.
'In his election platform, Mark Carney said that he would limit immigration to 1% of the population. He did not mention anything about study permits and foreign workers. The indications are that he would not be making significant changes to the existing policies in this regard,' said Maharaja to Business Standard.
"It is therefore unlikely that prospective immigrants, students and workers would find it more difficult to come to Canada than is the case at present," he added.
Stephen Warren Green, managing partner at Green and Spiegel LLP, said he expects the government to reassess visa rules.
'The immigration policy would be totally reviewed by the current government. It will be more geared towards specific types of industries and specific types of education pathways,' he told Business Standard.
Green said he hoped to see stronger ties between India and Canada. 'It is time that Canada and India further their joint investment opportunities between both countries,' he added.