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Canada Boosts PNP And Scales Back On TFWP And Study Permits

Canada boosts PNP and scales back on TFWP and study permits
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Canada Boosts PNP And Scales Back On TFWP And Study Permits

Canada boosts PNP and scales back on TFWP and study permits, i.e., the Canadian government has unveiled its 2026–2028 Immigration Levels Plan, which increases permanent resident admissions through the Provincial Nominee Program (PNP) while reducing the number of temporary residents entering Canada through work and study permits.

The plan marks a shift toward long-term immigration stability, prioritizing economic programs and reducing reliance on temporary migration routes such as the Temporary Foreign Worker Program (TFWP) and international student permits.

Canada Boosts PNP While Reducing Temporary Worker Admissions

In 2026, Canada aims to welcome 91,500 new permanent residents through the PNP, which is an increase of 66% compared to the previous goal of 55,000.

Meanwhile, the government has cut back the Temporary Foreign Worker Program (TFWP) target for 2026 to 60,000, down from the previous 82,000 target.

On the other hand, International Mobility Program (IMP) work permits have increased. The 2026 target is now 170,000, up 32% from 128,700 in last year’s plan.

A key change in this year’s Levels Plan is the reduction in international student admissions, which drops almost by half, i.e., from 305,900 in the previous plan to 155,000 for 2026.

Temporary Residence Admissions Targets

2026 (Current Plan) 2025 2026 (Previous Plan)
Workers 230,000 367,750 210,700
Students 155,000 305,900 305,900
Total 385,000 673,650 516,600

These changes were announced in the 2026–2028 Immigration Levels Plan. The plan outlines how many people Canada plans to accept as permanent and temporary residents in the coming year, as well as estimated targets for the next two years.

To continue reducing the number of temporary residents in Canada, the government has set the following yearly admission targets for temporary residents:

2026 2027 2028
Workers – IMP 170,000 170,000 170,000
Workers – TFWP 60,000 50,000 50,000
Total workers 230,000 220,000 220,000
Students 155,000 150,000 150,000
Total temporary residents 385,000 370,000 370,000

While these numbers are significantly lower than those in last year’s plan, they are more consistent with actual admissions observed in 2025, which saw major drops in study and work permit approvals.

Permanent Resident Targets Remain Stable

The government has chosen to keep overall permanent resident (PR) targets relatively steady compared to the previous year. The plan continues to emphasize economic immigration while maintaining stable numbers in family and humanitarian categories.

2026 (Current Plan) 2025 2026 (Previous Plan)
Economic 239,800 232,150 229,750
Family reunification 84,000 94,500 88,000
Refugee & humanitarian 56,200 68,350 62,250
Total 380,000 395,000 380,000

Furthermore, the most recent Plan envisions only nominal changes in annual top-level permanent residence admission target from 2026 through to 2028:

2026 2027 2028
Economic 239,800 244,700 244,700
Family reunification 84,000 81,000 81,000
Refugee & humanitarian 56,200 54,300 54,300
Total 380,000 380,000 380,000
French-speaking admissions outside Quebec 9% (30,267) 9.5% (31,825) 10.5% (35,175)

Provincial Nominee Program

The major highlight of this year’s plan is the large boost to the PNP, which now has a target of 91,500 PR admissions in 2026.

This is excellent news for foreign nationals seeking permanent residency through provincial pathways, especially those who:

  • Are waiting in a PNP Expression of Interest pool but have not yet received an invitation.
  • Have lower Comprehensive Ranking System (CRS) scores in Express Entry.
  • Do not qualify for the Canadian Experience Class (CEC).
  • Work in lower-skilled occupations (TEER 4 or 5).
  • Wish to apply as business owners or entrepreneurs under PNP investor streams.

The increase could also benefit foreign nationals who want to live in provinces where their jobs or industries were not eligible for the PNP in 2024 due to reduced spots. With more spots available now, provinces may open up eligibility to more occupations.

The Provincial Nominee Program (PNP) lets provinces and territories nominate foreign nationals for permanent residence. It faced major cuts in last year’s Plan, when the 2025 target dropped from 120,000 to 55,000.

After that, the federal government also reduced PNP nomination quotas by 50% in January 2025. However, it later reversed this decision, increasing allocations for all provinces except Ontario and Prince Edward Island (PEI).

The new rise in PNP targets under Prime Minister Mark Carney and Immigration Minister Lena Diab shows a big policy change from the earlier government under Justin Trudeau and Mark Miller. In 2024, Trudeau and Miller had criticized provinces for how they managed their PNP programs.

Work Permit Programs

As Canada boosts PNP and scales back on TFWP and study permits, let us discuss about the work permit programs. 

Although the total number of work permits will increase, much of this growth comes from the International Mobility Program (IMP) rather than the Temporary Foreign Worker Program (TFWP).

In 2026, the target for the Temporary Foreign Worker Program (TFWP) dropped to 60,000, down from 82,000. However, the target for the International Mobility Program (IMP) increased to 170,000, up from 128,700.

The cut to the TFWP means employers will have less flexibility to hire foreign workers. It also reduces options for people whose post-graduation work permits (PGWPs) are expiring and for skilled foreign workers who want to move to Canada for jobs.

This is because the TFWP is a general program that covers most types of work permits, while the IMP is more limited. IMP work permits are only given to people who meet certain special conditions.

In Canada, all work permits are issued under either the TFWP or the IMP, and there are key differences between the two programs.

The table below shows the difference between both programs:

Program LMIA Required? Program Mandate Who Is Eligible?
TFWP Yes Economic, employer-driven Any admissible foreign national
IMP No Economic and cultural Foreign nationals in specific situations only

The Temporary Foreign Worker Program (TFWP) allows Canadian employers to hire foreign workers when no Canadian or permanent resident is available for the job. To do this, employers must first get a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC), showing that hiring a foreign worker will not hurt Canadian workers.

Any eligible foreign national can apply for a TFWP work permit for almost any job in Canada. However, all TFWP work permits are closed, meaning the worker can only work for the specific employer and job listed on the permit.

Because the TFWP is broad, the government cannot easily control how many work permits are issued. As long as employers get positive or neutral LMIAs, permits can be approved. To reduce TFWP work permits in 2024, the government raised the wage requirement for high-wage jobs and stopped approving low-wage LMIAs in regions where unemployment was higher than 6%.

In contrast, the International Mobility Program (IMP) is different. It focuses on bringing cultural and economic benefits to Canada. For example:

  • International Experience Canada (IEC) lets young people from certain countries work in Canada, while giving the same chance to Canadian youth abroad.
  • Bridging Open Work Permits (BOWPs) help people already working in Canada who are waiting for their permanent residence application to be approved.
  • Spousal Open Work Permits (SOWPs) allow the spouses of people with valid status in Canada to work.
  • The Post-Graduation Work Permit (PGWP) lets international students work in Canada after finishing their studies.

IMP work permits do not require an LMIA. The program includes both closed work permits (for specific employers) and open work permits (which allow working for almost any employer).

The IMP gives the federal government more control over who gets work permits. For example, the government can change eligibility rules for certain streams like tightening PGWP and SOWP requirements to reduce the number of permits issued. Recent changes will cut about 325,000 work permits over three years.

Plan Aims To Reduce Temporary Resident Population

One of the main goals of the 2026–2028 plan is to reduce the temporary resident share of Canada’s total population to 5% by 2027.

In 2025, this policy already showed results, i.e., population growth slowed, and admissions of temporary residents dropped by more than 50%.

The new plan continues this approach, introducing further limits on student and worker admissions to ensure sustainable growth.

Major Policy Changes Reducing Temporary Residents

Canada boosts PNP and scales back on TFWP and study permits, it is vital to note that throughout 2024 and 2025, the government has introduced several policies designed to cut temporary resident numbers, including:

  • A cap on study permit applications.
  • Removal of PGWP eligibility for students enrolled in programs offered under curriculum licensing agreements.
  • Adding language and field-of-study requirements for PGWP eligibility.
  • Restricting spousal open work permits for international students only to spouses of doctoral and certain master’s or professional degree students.
  • Restricting SOWPs for temporary foreign workers to spouses in high- or in-demand mid-skilled jobs.
  • Imposing a moratorium on low-wage LMIAs in regions with unemployment above 6%.

Many of these policy changes will take several years to fully affect the number of temporary residents in Canada.

For example, cutting the number of study permits will eventually reduce the number of post-graduation work permit (PGWP) holders. But this change will take time to show results. Moreover, the 2025 study permit cuts will show their impact by 2029, when international students who started four-year degrees finish their studies and apply for work permits.

Some changes, however, will have a faster impact. The ban on low-wage LMIAs means that employers in affected areas cannot renew expiring work permits for low-wage jobs. Since TFWP work permits usually last one to two years, their effects will start to appear much sooner.

Understanding The Immigration Levels Plan

The Immigration Levels Plan is part of Canada’s annual Report to Parliament on Immigration. It must be tabled by November 1 each year and sets out:

  • The immigration targets for the next year.
  • Forecasts for the following two years.

While the plan now includes temporary resident targets for workers and students, it does not cover short-term visitors, seasonal workers, or asylum seekers.

Breakdown Of PR And TR Admissions Compared To Last Year

2026 Targets

2026–2028 Plan 2025–2027 Plan
Permanent Resident Levels
Federal High Skilled 109,000 124,590
Provincial Nominee Program 91,500 55,000
Federal Economic Pilots 8,175 9,920
Atlantic Immigration Program 4,000 5,000
Federal Business 500 1,000
Temporary Resident Levels
IMP 170,000 128,700
TFWP 60,000 82,000
Total workers 230,000 210,700
Students 155,000 305,900

2027 Targets

2026–2028 Plan 2025–2027 Plan
Permanent Resident Levels
Federal High Skilled 111,000 118,730
Provincial Nominee Program 92,500 55,000
Federal Economic Pilots 8,775 9,920
Atlantic Immigration Program 4,000 5,000
Federal Business 500 1,000
Temporary Resident Levels
IMP 170,000 155,700
TFWP 50,000 82,000
Total workers 220,000 237,700
Students 150,000 305,900

A Balanced But Controlled Approach

The 2026–2028 Levels Plan brings big changes compared to past years. While permanent residency (PR) targets will stay about the same, temporary residency programs are being adjusted to create a better long-term balance.

The federal government is focusing on expanding the Provincial Nominee Program (PNP), keeping some flexibility in the International Mobility Program (IMP), and reducing the number of international students. This shows a shift toward a more sustainable and skills-based immigration system.

With fewer temporary residents and provinces playing a bigger role in choosing newcomers, this plan is a reset of Canada’s immigration system – aiming to balance growth and stability for the future.

MakeHomeCanada, a Canadian immigration leader, promises excellence and tailored pathways for your Canadian journey. Get in touch with us at [email protected].