Canada set to make drastic reductions in annual immigration targets

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Canada will take a rare step to lower its annual immigration targets on Thursday, according to media reports.

Barring any last-minute changes, the federal government is set to reduce the number of permanent residents to 395,000 in 2025, 380,000 in 2026, and 365,000 in 2027, from 485,000 this year, according to the National Post.

Prime Minister Justin Trudeau is expected to make the announcement Thursday morning.

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In late September, Immigration Minister Mark Miller said he was exploring the rare option of reducing the number of permanent residents allowed in each year while preparing the immigration levels plan, which is typically announced by November 1.

The goals have generally been maintained or increased for more than a decade, but with declining job vacancies, rising unemployment rates — especially among newcomers and young people — and growing concerns about affordability, “there’s definitely a world now where we see cuts.” Miller said.

Immigration plays a major role in the country’s economy, with newcomers accounting for more than a third of the workforce in industries such as accommodation and food services, transportation and warehousing, and the professional, scientific and technical sectors, according to Statistics Canada. The country’s aging population is another reason behind the heavy reliance on immigrants.

As such, the federal government Immigration levels plan You annually specify the number of permanent residents you wish to bring in over the next three years.

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Economists and business associations had different expectations regarding Miller’s decision.

The Canadian Chamber of Commerce, which represents more than 200,000 businesses, said in September that it would not be surprised if the targets were lowered. Rebecca Young, an economist at the Bank of Nova Scotia, shared a similar view. But Benjamin Tull, deputy chief economist at CIBC World Markets Inc., said he doesn’t expect much change.

Douglas Porter, chief economist at the Bank of Montreal, said in September that he found it “very interesting” that Ottawa “seems to be thinking about rethinking” its permanent residency targets.

“This would be a very big step,” he added. “It would indicate that they have some serious thoughts about the wisdom of the very strong migration flows that we have seen in recent years,” he added.

The reported decline in the number of permanent residents is consistent with some of Miller’s recent reductions in the number of temporary residents allowed into the country.

In March, a cap on temporary residents was announced for the first time, with the aim of reducing the number of temporary residents to five percent of the total population by 2026, from about 6.5 percent currently.

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Ottawa earlier this month reduced the number of international study permits it plans to offer in 2025, which is in addition to the two-year cap imposed on international students in 2023.

Miller also announced policies to restrict work permit eligibility for graduates and their spouses, and in August, he limited the number of temporary foreign workers entering the country.

The federal government is expected to provide a target for temporary residents on Thursday morning.

• Email: nkarim@postmedia.com

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