The plan, apart from the numbers and the addition of targets for temporary residents, also had high level discussion of impacts on housing, healthcare and education, as I argued for in my December 2022 article Has immigration become a third rail in Canadian politics?
Major and overdue reversal, one that allows for a more serious discussion regarding immigration policies and priorities without accusations of xenophobia or racism (although see that some activists have already gone there).
Some selected commentary, mix of serious and agenda driven, no doubt more will follow.
Advocates:
A Dark Day for Canada: CILA Condemns Immigration Levels Plan 2025-2027: As an example of this, the federal government’s decision to aggressively increase permanent resident levels in 2021 during a challenging pandemic operating environment created a cascading effect on permanent and temporary resident programs which are still placing immense pressure on the immigration system today and will continue to do so over the foreseeable future. Another example was to allow international students to work full-time while class was in session. This change added to the growing number of foreign students coming to Canada, primarily to seek employment opportunities rather than academic pursuits. Consulting widely with stakeholders would give IRCC the information it needs to plan for the long-term and make policy decisions that are sustainable.
While we are unable to change the past, it is incumbent on IRCC to learn from its recent shortcomings and ensure it hosts genuine stakeholder consultations moving forward so that immigration levels planning and other major policy decisions consider various viewpoints and we can proactively and effectively manage a healthier immigration system.
OCASI: Immigration Levels Plan leaves behind refugees, families and people without status: We are deeply concerned that the government continues to incorrectly tie immigration numbers to housing pressures. Scapegoating immigrants for the lack of affordable housing is disgraceful, and will only increase anti-immigrant sentiment from politicians and the public. We expect better from the government and leaders of all political parties.
These cuts also contradict the government’s acknowledgement that immigration is essential to Canada’s economic success and growth, and that 100% of Canada’s labour market growth comes from immigration. We call on the government to provide greater clarity on how the new levels plan is expected to resolve the public concerns it claims to address.
Canada betrays refugees – CCR Statement on 2025 Levels Announcement: In a shameful abdication of responsibility, the Canadian government has massively reduced its commitment to offer protection to those fleeing persecution and danger in the world, and all but ensured that refugees in Canada will remain separated from their spouses and children for years to come. The CCR condemns today’s announcement and calls on the government to reverse this dangerous course.
Media commentary
Clark: The day Justin Trudeau (sort of) admitted a mistake on immigration: The U-turn is unusual for governments, and out of character for this one. But it had become a political necessity to tell Canadians the Liberals are changing course. Mr. Trudeau even admitted he made a mistake. Or sort of.
Keller: The Trudeau government wants to restore the immigration consensus that it broke: Good news: Canada’s immigration consensus is back. Better news: It’s being restored by the people who broke it.
That means immigration is not going to become a divisive, polarizing and potentially explosive issue in the next federal election. Unlike our peers in Europe and the United States, we’re not going to have a radical left versus radical right brawl over the issue.
Why not? Because Prime Minister Justin Trudeau’s government has come to its senses on this issue. It’s been moving in that direction for the last year and a half, and as of this week, it’s close to fully there.
Phillips | Don’t be fooled into thinking Canadians have soured on immigration — the truth is remarkable
Canadians, by a significant majority, still believe in the value of immigration and they aren’t scapegoating immigrants for their problems, which compared to what’s happening in other countries is quite remarkable. Apparently, not even massive screw-ups in the immigration system can change that. Be grateful.
John Ivison: Red flags all over Trudeau’s flawed plan to curb runaway immigration: The new immigration plan says that 62 per cent of permanent resident admissions will come from the economic class next year, up from 58 per cent in 2024.
But that might simply reflect the adoption of a proposal circulating in the Immigration Department that would create a new economic class of permanent residents for people with high-school education or less, who would otherwise not pass the Comprehensive Ranking point-system that has served Canada so well when it comes to selecting the best and brightest.
The fear among some economists is that this might apply the brakes to a situation that is out of control but risk derailing the whole locomotive by undermining the skills-based system and lowering the standard of permanent resident that Canada accepts.
SUN EDITORIAL: Reducing immigration necessary, not racist: We aren’t going to fault Prime Minister Justin Trudeau for admitting his high immigration policies were a mistake that contributed to today’s affordability crisis, including high housing costs.
We do fault him for his government’s false depiction of Canadians who were raising these concerns long before he did, as racists.
Jesse Kline: Toronto Star paints a skewed picture of Trudeau’s immigration cuts: The bigger problem is that Keung’s story ran in the news section, where reporters have traditionally been expected to provide unbiased accounts of the day’s events. Although Keung is a veteran of the Star’s newsroom, the issue of reporters blurring the line between news and opinion is becoming increasingly common — particularly among young journalists fresh out of university, where many professors now see it as their duty to train activists, rather than extol the virtues of objective journalism.
This influx of woke young journalists has fundamentally changed the culture of many newsrooms, even ones as storied as the New York Times, as its former opinion editor, James Bennet, lamented in a lengthy feature published in The Economist last December. Bennet noted that when he began working at the paper as a reporter in 1991, he started from the bottom and was taught to aspire to “journalistic neutrality and open-mindedness.” In 2006, he left to become editor-in-chief of The Atlantic, where he started to “see some effects of the new campus politics.” [Ironically, the NP increasingly resorts to anti-woke younger columnists.]
Academic
Worswick: As Canada cuts immigration numbers, we must also better select immigrants
The reduction in the immigration and temporary-resident targets can be seen as sound economic policy so long as we as a country maintain our historical focus on selecting economic immigrants who are likely to have high earnings in the Canadian labour market. This focus has played no small part in maintaining our pro-immigration consensus, which can continue under a properly designed set of immigration policies.
Various (Star selection)
Canada’s major changes to immigration targets met with widespread criticism: Diana Palmerin-Velasco, a director of the Canadian Chamber of Commerce, said the business community understands the need for a sustainable immigration system but is concerned about the plan’s implications on the labour market.
“It seems that the government might be overreacting,” she said. “It’s not just 100,000 fewer permanent residents. We are also expecting to see 400,000 fewer temporary residents. We are talking about 500,000 people.”
Scotiabank economist Rebekah Young said the drastic cuts to both permanent and temporary immigration are going to have a near-term macro impact on the economy, and there will be trade-offs.
“They are a source of labour supply and they provide economic activity through the workforce, but they also consume,” said Young. “We’re likely left with lower GDP, but not necessarily a stronger trajectory for the growth outlook.”
Dan Kelly, president of the Canadian Federation of Independent Business, said the cuts are troubling to employers and small businesses.
“A restaurant owner who can’t find a cook ready and willing to work in their community will not have work for the Canadians who may work in the front of the house,” he said. “We need to rethink many of these recent changes and be ready to turn the dial back up.”
The cuts mean migrants will be forced to remain temporary or become undocumented, and pushed further into exploitative jobs and conditions, said Syed Hussan of the Migrant Rights Network.
The Canadian Immigration Lawyers Association called the pullback a “dark day” for Canada, warning of economic, fiscal and social damage.
“We still have an aging population, low birth rate, and pressing economic and fiscal pressures,” said Barbara Jo Caruso, its co-president. “Canada’s fundamental need for immigration has not changed.”
Diana Gallego, president of the Canadian Council for Refugees, said behind the numbers slashed from the humanitarian component of the levels are 14,000 real people struggling under persecution or in conflict zones around the world.
Business
Statement by Century Initiative in Response to Federal Government’s 2025-2027 Immigration Levels Plan: “Cutting immigration targets is the ultimate hammer solution to a problem far more complex than a few loose nails. This decision projects panic and instability at a time when the country needs clarity and foresight. Canada’s reputation as a stable, welcoming environment for business and talent is now at risk.” — Lisa Lalande, CEO, Century Initiative
CFIB statement on the latest immigration cuts: These decisions hold huge implications for small business owners, Canadian workers as well as permanent immigrants and temporary workers. A restaurant owner who can’t find a cook ready and willing to work in their community will not have work for the Canadians who may work in the front of the house. We need to rethink many of these recent changes and be ready to turn the dial back up whenever and wherever needed.
Size of Ottawa’s cuts to immigration targets takes business by surprise: Since the reduction is likely to take place when the economy is becoming less inflationary and interest rates decline, this could inspire “existing Canadians to ramp up their spending,” said James Orlando, director of economics at Toronto-Dominion Bank, instead of depending upon newcomers.
Bank of Montreal economist Robert Kavcic in a note on Thursday said that while the government’s decision will reduce demand, the narrative that slower population growth is bad for the economy needs to be dispelled.
He said gross domestic product per capita, which measures the total production of goods and services during a certain period divided by the total population, has fallen in seven of the eight quarters since the second quarter of 2022.
Canada’s immigration pullback may impact economic growth, BoC governor says: “If population growth comes down faster than we have assumed, headline GDP growth will be lower,” Macklem said in response to a question on how the immigration curbs would impact the bank’s forecasts.
If household spending recovers more quickly due to continued cut in interest rates, economic growth could also be higher, he said, while addressing reporters virtually from Washington.
Other
Peter Csillag: Bigger numbers, fewer safeguards, and no accountability—How to fix Canada’s foreign worker program woes: The government’s signal this week that it is willing to not only entertain but actually implement restrictions on its broader immigration agenda is welcome, but far too little, too late. While the high-profile announcement of cuts to the number of permanent residents allowed into Canada is much needed, broader problems persist, particularly with the TFW program. It will be up to the next government to solve them.
Liberals to reduce immigration levels by 135K over two-year period: Sergio Karas, a specialist in immigration law agrees, he told True North that while this reduction is necessary given the housing crisis and the current state of the economy, he still believes that number should be further reduced.
“As usual, the Trudeau government is doing it wrong,” said Karas.
“The total number should be reduced to the 2015 levels of approximately 300,000 because the federal government inflated the number exponentially in the last nine years, but more important are the categories where the reduction should be applied. Not all applicants have the same ability to adapt, job security, language skills, and expertise required to ensure economic growth.”
Government announcement
The 2025–2027 Immigration Levels Plan is expected to result in a marginal population decline of 0.2% in both 2025 and 2026 before returning to a population growth of 0.8% in 2027. These forecasts account for today’s announcement of reduced targets across multiple immigration streams over the next two years, as well as expected temporary resident outflows resulting from the 5% target, natural population loss and other factors.
With this year’s levels plan, we have listened to Canadians. We are reducing our permanent resident targets. Compared to last year’s plan, we are:
- reducing from 500,000 permanent residents to 395,000 in 2025
- reducing from 500,000 permanent residents to 380,000 in 2026
- setting a target of 365,000 permanent residents in 2027
The Levels Plan also supports efforts to reduce temporary resident volumes to 5% of Canada’s population by the end of 2026. Given temporary resident reduction measures announced in September and this past year, Canada’s temporary population will decrease over the next few years as significantly more temporary residents will transition to being permanent residents or leave Canada compared to new ones arriving.
Specifically, compared to each previous year, we will see Canada’s temporary population decline by
- 445,901 in 2025
- 445,662 in 2026
- a modest increase of 17,439 in 2027
These reductions are the result of a series of changes over the past year, including a cap on international students and tightened eligibility requirements for temporary foreign workers, implemented to decrease volumes and strengthen the integrity and quality of our temporary resident programs. The changes are designed with long-term economic goals in mind to make sure that we continue to attract the best and the brightest.
These changes will help provinces, territories and stakeholders align their capacities and allow the population to grow at a sustainable pace as we encourage institutions to do their part in better welcoming newcomers.
Other measures from the 2025-2027 Immigration Levels Plan include the following:
- Transitioning more temporary residents who are already in Canada as students and workers to permanent residents
Representing more than 40% of overall permanent resident admissions in 2025, these residents are skilled, educated and integrated into Canadian society. They will continue to support the workforce and economy without placing additional demands on our social services because they are already established, with housing and employment.
- Focusing on long-term economic growth and key labour market sectors, such as health and trades
Permanent resident admissions in the economic class will reach 61.7% of total admissions by 2027.
- Strengthening Francophone communities outside Quebec and supporting their economic prosperity
Of the overall permanent resident admission targets, Francophone immigration will represent
- 8.5% in 2025
- 9.5% in 2026
- 10% in 2027
Through this plan, we are using our existing programs so that everyone—including newcomers—has access to the well-paying jobs, affordable homes and social services they need to thrive in our beautiful country.
Source: Government of Canada reduces immigration
Multicultural Meanderings 