Canada updates immigration targets: big boost to PNP, reduced TFWP and student admissions

Overview

Canada’s new Immigration Levels Plan for 2026–2028 rebalances permanent and temporary admission targets. Most notably, the Provincial Nominee Program (PNP) receives a substantial increase in permanent resident slots, while targets for Temporary Foreign Worker Program (TFWP) permits and international student admissions are scaled back.

Major changes at a glance

• PNP increase: 91,500 permanent residents through PNP in 2026 (up from 55,000).
• TFWP reduced: 2026 TFWP admissions target set at 60,000 (previously 82,000).
• IMP rise: International Mobility Program (IMP) target increased to 170,000 for 2026.
• Students cut: Study permit target reduced to 155,000 for 2026 (near 50% lower than prior planning).
• Total permanent residence: remains at 380,000 for 2026.

Temporary residence targets — key tables

Temporary residence: 2026 (current plan) vs prior plan

Permanent residence: headline targets for 2026

What the PNP increase means

Raising the PNP allocation to 91,500 opens new pathways for candidates who may not qualify under Express Entry or who work in lower-skilled occupations (TEER 4–5). The boost benefits:

• Provincial candidates in Expression of Interest (EOI) pools awaiting invitation.
• Applicants with lower Comprehensive Ranking System (CRS) scores.
• International graduates and workers in in-demand regional occupations.
• Business-owner applicants under various provincial investor or entrepreneur streams.

This change reverses steep reductions made in the prior plan and gives provinces greater flexibility to nominate applicants aligned with local labour market needs.

Work permits: TFWP vs IMP

The government reduced the TFWP target while expanding IMP admissions. Key distinctions:

• TFWP — Employer-driven; requires an LMIA; program is the primary route for employers to hire foreign workers for most positions.
• IMP — LMIA-exempt streams (for example, PGWP, SOWP, IEC, and BOWP) that are used for specific categories and allow the federal government greater control over issuance.

Because IMP streams are more targeted, the federal government can manage temporary worker numbers by adjusting eligibility criteria for specific streams rather than relying on broad LMIA-based limits.

Why student admissions were reduced

International student targets were set much lower to limit growth in the temporary resident population and reduce pressure on housing and public services. Policy changes driving the decline include:

• A cap on study permit applications.
• Revisions to post-graduation work permit eligibility and additional program and language requirements.
• Limits to spousal open work permits for many student categories.

These measures are intended to produce slower, more sustainable increases in temporary resident numbers over time.

Policy outlook and implications

The updated Levels Plan seeks to rebalance long-term population objectives with labour market needs and community capacity. Expect the following near-term outcomes:

• Greater provincial influence in economic immigration through the PNP.
• Fewer broad-based temporary work permits via the TFWP; more targeted use of IMP streams.
• Lower student permit volumes that will gradually shrink the pool of future work-permit holders.

Employers, post-secondary institutions and prospective migrants should review the specific eligibility criteria for each program and consider provincial streams where applicable.