On 18 September 2024, immigration Minister Marc Miller announced updates to Canada’s Immigration Levels Plan. The changes focus on reducing the number of temporary residents in Canada, aiming to lower their share of the population from 6.5% to 5% by 2026. Part of the plan is to implement stricter rules for work and study permits to manage population growth better and ensure sustainable immigration. The Start-Up Visa program will also be affected, with reduced capacity for new applicants.

What is the Immigration Levels Plan?

The Immigration Levels Plan is Canada’s official strategy for managing immigration. It outlines the target number of permanent residents the country aims to welcome annually. Historically, the plan focused solely on permanent immigration, but for the first time in 2024, it also addressed the issue of temporary residents, such as those on work and study permits. 

The Immigration Levels Plan divides immigration into main categories: economic immigration, family reunification, and refugees. It sets clear goals for how many people will come to Canada in each category. This helps the country meet its labor needs, manage population growth, and maintain infrastructure.

What does the new Immigration Levels Plan mean for the Canada Start-up Visa?

The recent changes in the Immigration Levels Plan are impacting the Canada Start-up Visa which is part of Canada’s Federal Business Immigration stream. This program, including the Self-Employed Program, has had its target for new immigrants significantly reduced.

The target for 2025 is now set at 2,000 immigrants, down from 5,000 in 2024. The numbers will continue to decrease in the following years, with targets of 1,000 immigrants in 2026 and 2027.

This will affect the number of new entrepreneurs who can use the Start-Up Visa to gain Canadian permanent residence, but opportunities are still available despite the reductions. For instance, Canada’s Start-Up Visa program recently introduced a new open work permit option for candidates.

Federal Business Immigration Levels Plan 2025-2027

Year

 Federal Business Immigrants 

2025

2,000

2026

1,000

2027

1,000

What is the new open work permit option for Start-Up Visa candidates?

Canada’s Start-Up Visa program now offers applicants a new open work permit. Starting on 3 October 2024, candidates can apply for a three-year open work permit for almost any employer in Canada. This differs from the previous rule, which only allowed work on the start-up business.

The open work permit helps entrepreneurs stay financially stable while building their businesses. However, the permit doesn’t guarantee permanent residency, as candidates must still meet the program’s criteria. To apply, applicants must first get an Acknowledgment of Receipt (AOR) from the Canadian government. This change gives more flexibility and opportunities for investors.

To find out more about the Canada Start-up -Visa

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Projected Targets for Temporary Residents

Canada plans to reduce the number of temporary residents including workers and students, to 5% of the population by 2026. This will be achieved through a combination of new targets and measures. Here’s a summary of key points:

Temporary resident targets (2025-2027):

  • Student arrivals will follow a cap already set by Canada.
  • Worker arrivals will be tracked under the International Mobility Program and the Temporary Foreign Worker Program.
  • The reduction in temporary residents will be managed by increasing the transition of temporary residents to permanent residency and encouraging those whose permits expire to leave. 

The expected reduction in temporary residents will be:

Year

Projected Change in Temporary Residents

2025

Decrease by 445,901

2026

Decrease by 445,662

2027

Increase by 17,439

Measures to achieve the 5% Target

  • International Student Cap: A reduction in international student study permits, with a 10% reduction for 2025.
  • Post-Graduation Work Permit Program Reform: Tightened eligibility to align with immigration goals and labor needs.
  • Temporary Foreign Worker Program Reform: A 10% cap on low-wage stream hires and a 20% increase in the starting wage for high-wage stream foreign workers.
  • Work Permits for Spouses: Stricter work permit rules for the spouses of temporary foreign workers and international students.

Projected Targets for Permanent Residents

In 2025, Canada will reduce permanent resident admissions by 105,000 to ensure sustainable growth. More than 40% of new residents will be individuals already in Canada, such as temporary workers or students, who tend to have better long-term success. 

The focus will be on economic immigration, with 62% of new residents admitted through high-demand sectors like healthcare and trades. Family reunification will account for nearly 24% of admissions, while Canada will continue its commitment to resettling vulnerable populations. Additionally, Francophone immigration outside Quebec will increase gradually, with targets of 8.5% in 2025, rising to 10% by 2027.

Breakdown of immigration targets for permanent residents

Category

2025 Target

2026 Target

2027 Target

Economic Immigration

62%

62%

62%

Family Class (Reunification)

24%

24%

24%

Francophone Immigration (outside Quebec)

8.5%

9.5%

10%

Vulnerable Populations (Refugees)

Includes refugees and other vulnerable groups

Continues commitment

Continues commitment

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