Planning to study or work in Canada? Ottawa plans to cut student and foreign worker arrivals

Canada is planning to reduce the number of international students and temporary foreign workers entering the country over the next three years while maintaining its permanent residency (PR) admissions target at 3.8 lakh annually.

The move is part of the Canadian government's broader strategy to manage immigration levels, ease pressure on housing and public services, and prioritise workers who meet the country's economic needs.

According to Immigration, Refugees and Citizenship Canada's (IRCC) supplementary immigration levels for 2026-2028, the government also plans to accelerate the transition to permanent residency for up to 33,000 temporary foreign workers in 2026 and 2027. The proposed changes could significantly affect Indian students, skilled professionals and workers planning to settle in Canada.

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Canada plans to reduce temporary resident arrivals

Under the revised plan, Canada aims to reduce new temporary resident arrivals from 3,85,000 in 2026 to 3,70,000 annually in 2027 and 2028. These targets cover international students and temporary foreign workers.

The government has set a target of 1,55,000 new international student arrivals in 2026, declining to 1,50,000 annually in the following two years. Meanwhile, temporary foreign worker arrivals are projected at 2,30,000 in 2026, falling to 2,20,000 in both 2027 and 2028.

The policy aims to bring the temporary resident population below 5% of Canada's total population by the end of 2027. Rising housing costs, pressure on infrastructure and growing demand for public services have prompted the government to tighten temporary immigration.

Canada to fast-track PR for 33,000 workers

Alongside reducing new arrivals, Canada plans to facilitate permanent residency for up to 33,000 temporary foreign workers over 2026 and 2027.

The initiative seeks to retain workers already contributing to the economy and established in their communities. Workers with relevant skills and experience, particularly those addressing labour shortages or living in rural and smaller communities, could benefit if they meet the applicable eligibility criteria.

However, the initiative does not guarantee permanent residency to every temporary foreign worker. Applicants must satisfy the requirements of the relevant immigration programme.

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PR target remains unchanged

Despite lower temporary immigration targets, Canada intends to maintain annual permanent resident admissions at 3,80,000 between 2026 and 2028. Economic immigration will remain a priority, accounting for an estimated 64% of permanent resident admissions in 2027 and 2028.

What does this mean for Indians?

For Indian students, lower intake targets could mean increased competition and greater scrutiny when planning overseas education. Applicants should carefully evaluate tuition fees, employment prospects, institutional choices and post-study work permit eligibility.

For Indian professionals, relevant qualifications, work experience and in-demand skills could become increasingly important. Temporary workers already in Canada may have opportunities to pursue PR through eligible programmes, but approval is not guaranteed.