Canada New Immigration Rules 2025

Canada’s Immigration Minister Marc Miller introduced several significant changes to immigration policies. These will impact many workers, forcing them to leave the country. The Minister recently revealed that 5 million workers will leave the country by December 2025. Miller stated that many visa holders are expected to leave voluntarily, while the Canadian Border Services Agency (CBSA) focuses on enforcing immigration laws for those who overstay.

Here’s a quick recap of the various important changes introduced by the immigration minister recently that may impact your Canadian journey:

Permanent Resident Targets Reduced

To manage the expanding population, the target for new permanent residents was reduced from 500,000 to 395,000 in 2025, a 21% decrease.

• Under the 2025–2027 Immigration Levels Plan, the population is expected to decrease by 0.2% in 2025 and 2026, before shifting to a growth rate of 0.8% in 2027. The government believes that this plan will also help improve housing affordability and reduce the unemployment rate. 
• The target for the year 2026 has been reduced from the 500,000 permanent residents target in 2024-2026 Immigration Levels Plan to 380,000. For the year 2027, the target has been set to 365,000 permanent residents.

Temporary Resident Volumes Reduced

Temporary resident volumes have been targeted to be reduced to 5% of Canada’s population by the end of 2026. This is the first that the target number of temporary residents in Canada has been reduced in the Immigration Levels Plan.

There will be a decline of 445,901 in 2025, 445,662 in 2026 and a marginal increase of 17,439 in 2027 for temporary foreign workers and international students.

According to the government, in response to the evolving needs of Canada, these transitional levels plan to ease pressure on housing, infrastructure, and social services, ensuring long-term economic and social prosperity through immigration.

In-Canada Focus Category

The good news is there is an emphasis on transitioning temporary residents already in Canada to permanent residents. Those who are already living in Canada stand to benefit as the immigration plan prioritizes in-Canada applicants and pathways for them. A new in-Canada focus category has been introduced targeting Canadian Experience Class and other immigration programs, to attract workers they need.

Economic Immigration Priorities

There have been adjustments made to economic immigration streams to prioritize sectors like healthcare and trade. The focus of the Canadian government will be on allowing more people to migrate to Canada for economic reasons, with a spotlight on sectors like health and trades, with around 62% of total permanent resident admissions geared towards the same by 2027.

Study Permit Cap

An intake cap on most study permit applications was introduced earlier this year. The government believes that the rapid increase in the number of international students puts pressure on housing, infrastructure and resources. The cap is expected to result in approximately 360,000 approved study permits in 2024, a decrease of 35% from 2023.

Students pursuing master’s and doctoral degrees aren’t included in the cap. Further, every study permit application submitted to IRCC will also require an attestation letter from a province or territory to implement this cap.

Moreover, spouses of students pursuing undergraduate or college programs won’t be eligible for an open work permit.

Amended Cost of Living Requirement

The immigration minister also raised the cost of living requirement for international students so that every international student is prepared to live comfortably in Canada. The cost-of-living requirement for study permit applicants remained unchanged since the early 2000s, when it was set at $10,000 for a single applicant. Over time, this amount failed to keep pace with rising living expenses, leaving many students unprepared financially upon arrival in Canada.

Starting January 1, 2024, it was made mandatory for new study permit applicants to demonstrate access to $20,635—equivalent to 75% of the Low-Income Cut-Off (LICO)—along with funds for their first year of tuition and travel costs. 

Post-Graduation Work Permit Eligibility

There have been a few changes to the eligibility criteria for Post-Graduation Work Permits. If your study permit application was submitted before November 1, 2024, and you apply for a Post-Graduation Work Permit (PGWP) on or after that date, you must meet the updated language proficiency requirements based on your program of study:

Bachelor’s, Master’s, or Doctoral Degree Graduates

Demonstrate proficiency in English or French in all four language areas (reading, writing, listening, and speaking) at a minimum level of:

• CLB 7 for English, or
• NCLC 7 for French.

Other University Programs

Meet the same language proficiency levels as above (CLB/NCLC 7 in all areas).

College or Other Programs

• Demonstrate proficiency in all four language areas at a minimum level of:
• CLB 5 for English, or
• NCLC 5 for French.

For applications submitted on or after November 1, 2024, stricter rules apply. In addition to meeting updated language benchmarks, some applicants must satisfy field-of-study requirements.

Bachelor’s, Master’s, or Doctoral Degree Graduates

Prove language proficiency at CLB/NCLC 7 in all four areas (reading, writing, listening, and speaking). No restrictions apply to the field of study.

Other University Programs:

Meet the same language proficiency requirements (CLB/NCLC 7 in all areas) and graduate from a program in a field of study aligned with Canada’s labour market needs.

College or Other Programs:

Prove language proficiency at CLB/NCLC 5 in all four areas and graduate from a program in a field of study linked to Canada’s labour market needs.

These updates aim to align international graduates’ skills with Canadian labour market demands while ensuring adequate language proficiency. If your study program falls under the field of study requirement, you must graduate from a program identified by Canada as addressing long-term labour shortages. Eligible fields include:  

• Agriculture and Agri-Food  
• Healthcare  
• Science, Technology, Engineering, and Mathematics (STEM)  
• Trades  
• Transport

Work Permits for Spouses

Unlike before, not all spouses will qualify for open work permits. Spouses of foreign workers are eligible for open work permits if their spouses are working in certain sectors of occupations like management, professional occupations or sectors with labour shortages.

• For international students, spouses will qualify only if the student is enrolled in a master’s, doctoral or professional degree program.
• In addition to limiting spousal work permits for certain occupations, the government is focused on critical sectors experiencing critical shortages like healthcare, engineering and IT.
• If the foreign worker doesn’t fall under these categories, the spouse won’t likely be eligible for a spousal open work permit.

High-Wage Stream Changes

The government also introduced amendments to the high-wage stream of the Temporary Foreign Worker Program (TFWP) to align with current labour market conditions. Canada had announced an increase in the minimum hourly wage requirements for the high-wage stream of the Temporary Foreign Worker Program (TFWP). Effective November 8, applicants under this stream must earn at least 20% more than the median wage for their position. This change raises the wage threshold by $5 to $8 per hour, depending on the province or territory.

The Canadian government estimates that up to 34,000 workers will transition from the high-wage stream to the stricter low-wage stream due to this reform. As a result, only about 20,000 positions are expected to be approved under the TFWP under the new rules.

Focus on French Language Speakers

The government wants to boost Francophone immigration outside Québec. The target for Francophone immigration is significant as compared to previous years which has been set to 8.5% in 2025, 9.5% in 2026, and 10% in 2027.

Before planning your move to Canada, it’s essential to understand the latest measures and align your plans accordingly. If you aim to study or work in Canada’s economic priority sectors, your chances of settling successfully may be higher.

Navigating the Canadian immigration system? Trust Keshav Sharma, a Regulated Canadian Immigration Consultant (RCIC), and Team Elaar Immigration. With extensive expertise in Express Entry and Provincial Nominee Programs (PNP), they offer the guidance you need to achieve Canadian permanent residency smoothly and successfully.

Reach out for a consultation today by contacting us or scheduling a consultation.