Major Boost for Provincial Nominee Program, Reductions in Work and Study Permits
The Government of Canada has unveiled its 2026–2028 Immigration Levels Plan, bringing major changes to how the country will manage immigration over the next three years. This updated plan emphasizes permanent immigration pathways, particularly through the Provincial Nominee Program (PNP), while scaling back temporary programs such as the Temporary Foreign Worker Program (TFWP) and study permits.
The announcement marks a strategic shift in Canada’s immigration policy—one that balances economic growth, population control, and housing pressures, while maintaining its global reputation as a welcoming destination for skilled immigrants.
A Strategic Realignment of Canada’s Immigration Vision
Each year, Canada releases an Immigration Levels Plan outlining its targets for both permanent residents (PRs) and temporary residents (TRs). The latest 2026–2028 plan reflects Ottawa’s broader goal of ensuring a sustainable immigration system that aligns with the country’s labour market needs and infrastructure capacity.
The government’s 2026 target includes:
- 91,500 new PR spots under the Provincial Nominee Program (PNP)
- 60,000 workers under the Temporary Foreign Worker Program (TFWP)
- 155,000 international students under study permit admissions
This represents a clear pivot toward stabilizing temporary resident numbers while strengthening regional and long-term settlement programs.
1. Provincial Nominee Program (PNP) Gets a Major Boost
Among all categories, the biggest winner in this year’s plan is the Provincial Nominee Program (PNP).
For 2026, Canada plans to admit 91,500 permanent residents through PNP streams—a massive 66% increase from the earlier target of 55,000.
Why the Increase Matters
The PNP allows Canadian provinces and territories to nominate skilled workers based on their specific labour market needs. By boosting PNP allocations, the federal government is empowering provinces to attract and retain immigrants who will contribute directly to regional economic growth.
This is particularly good news for:
- Candidates in PNP Expression of Interest pools awaiting nomination.
- Foreign nationals with lower Comprehensive Ranking System (CRS) scores under Express Entry.
- Workers in TEER 4 or 5 (lower-skilled) occupations.
- Entrepreneurs and investors applying through provincial business streams.
- Applicants whose occupations were previously excluded due to 2024 PNP restrictions.
Impact on Canada’s Labour Market
With Canada facing regional labour shortages, particularly in healthcare, construction, and technology, this expansion will enable provinces to:
- Address critical workforce gaps,
- Support rural and northern immigration, and
- Retain international graduates in smaller communities.
Moreover, for candidates struggling to meet Express Entry cutoffs, this PNP increase provides a new lifeline to achieve permanent residency.
2. Temporary Foreign Worker Program (TFWP) Scaled Back
While PNPs are rising, the Temporary Foreign Worker Program (TFWP) is facing a notable contraction.
For 2026, the federal government has reduced its admissions target to 60,000 workers, down from 82,000 in the previous plan.
Reason for the Reduction
The TFWP operates on the Labour Market Impact Assessment (LMIA) framework, meaning employers must prove they couldn’t find Canadians for a job before hiring a foreign worker. Over the past few years, Canada has seen a surge in temporary worker numbers, leading to concerns about:
- Labour market distortion,
- Wage suppression, and
- Pressure on public infrastructure and housing.
By reducing TFWP admissions, the government aims to rebalance the economy and ensure Canadian citizens and permanent residents are prioritized for available jobs.
Policy Measures to Manage TFWP Numbers
In 2024, Canada began tightening TFWP access by:
- Increasing the wage threshold for high-wage LMIA applications,
- Imposing a moratorium on low-wage LMIAs in regions with unemployment above 6%, and
- Encouraging employers to transition temporary workers to permanent streams.
These policies are expected to continue under the new plan, maintaining stricter controls over LMIA approvals.
3. International Mobility Program (IMP) Sees Growth
Interestingly, the International Mobility Program (IMP)—which includes work permits that do not require an LMIA—will see an increase in its targets.
For 2026, IMP admissions are set at 170,000, up from 128,700 in the previous plan (a 32% increase).
What is the IMP?
The IMP facilitates entry for foreign nationals who contribute to Canada’s economic, social, and cultural development, including:
- Bridging Open Work Permits (BOWP) for PR applicants,
- Spousal Open Work Permits (SOWP),
- Post-Graduation Work Permits (PGWP), and
- International Experience Canada (IEC) participants.
Unlike the TFWP, IMP work permits are LMIA-exempt, offering the federal government more flexibility and control in managing issuance volumes.
Government Strategy
By expanding IMP and reducing TFWP, Canada is shifting toward targeted work permit categories that:
- Strengthen reciprocal international partnerships,
- Support family reunification, and
- Encourage permanent settlement pathways for skilled workers.
4. International Student Admissions Cut Nearly 50%
One of the most significant changes in this plan is the sharp decline in international student targets.
For 2026, the annual target has been reduced to 155,000, nearly half of the previous target of 305,900.
The Reason for the Cut
Over the past few years, Canada’s post-secondary system saw a dramatic influx of international students, putting immense pressure on:
- Affordable housing,
- Public transit, and
- Institutional capacity in major cities like Toronto, Vancouver, and Montreal.
The government’s new strategy focuses on sustainable student intake, ensuring institutions maintain quality education and that students receive sufficient support.
This aligns with earlier measures introduced in 2025, including:
- New PGWP eligibility limits,
- Stricter financial proof requirements, and
- A cap on new study permits across provinces.
5. Overall Temporary Resident Targets Decline
The combined impact of these changes is reflected in the overall reduction in temporary resident (TR) admissions.
| Category | 2026 (Current Plan) | 2025 | 2026 (Previous Plan) |
|---|---|---|---|
| Workers | 230,000 | 367,750 | 210,700 |
| Students | 155,000 | 305,900 | 305,900 |
| Total Temporary Residents | 385,000 | 673,650 | 516,600 |
This major drop underscores Canada’s intent to decelerate temporary migration, focusing instead on long-term settlement through permanent immigration programs.
6. Permanent Residence (PR) Admissions Stay Steady
While temporary admissions are being reduced, Canada permanent residency targets remain stable.
| Category | 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 |
Key Highlights
- Economic immigrants remain the backbone of the plan, representing over 60% of total PR admissions.
- Family reunification programs are slightly reduced to maintain balance.
- Humanitarian and refugee categories maintain a consistent share, reaffirming Canada’s global leadership in refugee resettlement.
- Canada also aims for 9% French-speaking admissions outside Quebec in 2026, rising to 10.5% by 2028, promoting bilingualism and diversity.
7. Balancing Growth, Sustainability, and Opportunity
The 2026–2028 plan isn’t just about numbers—it’s a strategic balancing act between welcoming newcomers and ensuring Canada’s capacity to absorb them effectively.
Government’s Core Objectives:
- Stabilize population growth to relieve pressure on housing and healthcare.
- Support regional development through stronger provincial participation (via PNPs).
- Ensure quality education and work experiences for foreign students and workers.
- Encourage transition from temporary to permanent residency.
In simple terms, Canada wants to move from a temporary to a permanent immigration model, ensuring newcomers integrate successfully and contribute long-term.
8. What This Means for Immigration Applicants
For Skilled Workers:
- The PNP pathway will be the most accessible route to PR in 2026 and beyond.
- Candidates with low CRS scores or ineligible occupations for Express Entry should explore provincial nomination opportunities.
For Employers:
- Accessing temporary foreign talent will become more regulated under TFWP, emphasizing higher wages and localized LMIAs.
- However, IMP streams (like intra-company transfers or BOWPs) will remain flexible for international recruitment.
For International Students:
- Expect stricter study permit issuance, and prepare stronger financial documentation.
- Focus on Designated Learning Institutions (DLIs) that offer pathways to PR, such as PGWP-eligible programs.
For Families and Refugees:
- Family reunification continues but with moderate intake levels.
- Canada remains committed to humanitarian immigration, balancing global responsibilities with domestic priorities.
9. Provincial Opportunities Ahead
With the PNP expansion, several provinces are expected to update their nomination quotas and criteria in 2026:
- Ontario and British Columbia will likely lead with tech and healthcare-focused draws.
- Alberta and Saskatchewan are expected to prioritize trades, transport, and manufacturing.
- Atlantic provinces (like Nova Scotia and New Brunswick) will focus on community-driven settlement programs.
These changes give skilled workers worldwide an excellent opportunity to secure Canadian PR through regional immigration programs.
A More Balanced and Sustainable Immigration Future
The Canada 2026–2028 Immigration Levels Plan represents a critical recalibration of the nation’s immigration system. While temporary resident programs will see major cutbacks, Canada continues to reaffirm its long-term commitment to skilled immigration through PNP and economic programs.
This strategic shift supports the country’s twin goals of economic prosperity and social stability, ensuring that immigration remains a cornerstone of Canada’s growth—without overburdening its infrastructure.
At World Overseas Services, we help candidates navigate the evolving Canadian immigration landscape—from PNP nominations and Express Entry profiles to study visa guidance and LMIA support.