Canada’s 2025-2027 Immigration Plan: Impact on Permanent Residency (PR) Applicants

The 2025-2027 Immigration Levels Plan marks a significant shift in Canada’s approach to permanent residency (PR), responding to growing concerns about the economy, housing shortages, and labor market demands. This plan places a stronger emphasis on applicants already residing in Canada and reduces the number of available spots for those applying from abroad. As a result, aspiring immigrants not yet in the country face greater challenges, making long-term planning and strategic application approaches more crucial than ever.

Key Changes for Permanent Residency Applicants

1. Reduction in Permanent Resident Admissions

• The 2025-2027 plan sets PR admissions targets at 395,000 for 2025, 380,000 for 2026, and 365,000 for 2027. This is a marked decrease compared to earlier plans, which projected over 500,000 PR admissions by 2025.

• This reduction reflects concerns about housing availability, the capacity of social services, and overall economic stability. Aspiring PR applicants will face stiffer competition for fewer spots

2. Prioritization of In-Canada Applicants

• More than 40% of PR admissions in 2025 are expected to come from individuals already residing in Canada on temporary visas, such as international students or skilled workers.

• Research shows that individuals with in-Canada experience perform better in the labor market and integrate more successfully into Canadian society. This shift offers a clear advantage to those already living in Canada, while posing challenges for those applying from abroad.

Strategic Consideration: For those outside Canada, it is becoming increasingly important to first enter the country as a temporary resident, whether through study permits or work visas. Building Canadian work experience can significantly improve an applicant’s chances of transitioning to PR through programs like the Canadian Experience Class (CEC).

3. Changes to the Provincial Nominee Program (PNP)

• The Provincial Nominee Program (PNP), a vital pathway for many PR applicants, will see reduced quotas, with a target of 55,000 for 2025. This is a sharp decline from previous years, which had increasing PNP targets.

• The reduced numbers will make competition for PNP spots fiercer, especially in employer-sponsored streams and provincial programs that cater to in-demand skills like healthcare and skilled trades.

Strategic Consideration: Aspiring immigrants should focus on securing job offers from Canadian employers or aligning their profiles with provincial labor needs to increase their chances of receiving a nomination. Applicants targeting PNP streams should submit applications early in the year, as provincial quotas will fill up quickly.

4. Sector-Specific PR Opportunities

• The government has indicated that sectors such as healthcare and construction will receive priority in PR applications, as they address severe labor shortages. These sectors may see special draws or increased allocation spots for applicants with relevant skills.

• Although PR quotas are being reduced, there will be specific opportunities for those with expertise in these in-demand fields.

Strategic Consideration: Applicants with skills or experience in healthcare, construction, or other key sectors should closely monitor announcements regarding sector-specific PR draws. Ensuring their applications are ready and aligned with priority sectors will help take advantage of any fast-tracked PR opportunities.

5. Long-Term Planning and Early Applications

• Reduced PR quotas mean that applicants need to think long-term and carefully plan their applications. Applying early in the year is essential, particularly for PNP and employer-sponsored streams, as quotas may fill up quickly.

• Aspiring immigrants should focus on building profiles that align with Canada’s labor market needs, possibly through temporary pathways that allow them to gain Canadian work experience and then transition to PR.

Strategic Consideration: Applicants should adopt a proactive approach by preparing their documentation early and staying informed about immigration policy changes and sector-specific draws. By applying early and aligning their skills with in-demand sectors, they can improve their chances of being selected for PR.

Winners and Losers in the 2025-2027 Immigration Plan

Winners:

1. In-Canada Applicants Those already in Canada on temporary permits (such as international students and skilled workers) are the biggest beneficiaries of this plan. The prioritization of in-Canada applicants gives them faster and clearer pathways to PR.

2. Applicants in High-Demand Sectors Professionals in healthcare, construction, and other industries with labor shortages will benefit from special PR opportunities. These fields may receive priority draws or have a larger share of PR spots allocated.

3. Applicants with Canadian Job Offers PNP quotas are shrinking, but applicants with job offers from Canadian employers will have an advantage in securing nominations, making them more competitive.

4. Long-Term Planners with Canadian Experience Those who can gain temporary work or study permits in Canada will be better positioned to transition to PR through programs like the CEC. A gradual approach to gaining residency will be beneficial.

Losers:

1. Applicants Outside Canada Without Canadian Experience Applicants from abroad without prior Canadian experience will face tougher competition. With fewer PR spots and priority given to those already in Canada, they will need to consider entering first through temporary pathways.

2. Immigrants in Non-Priority Sectors Applicants in sectors not identified as high-demand (e.g., outside of healthcare or construction) will face more difficulty in securing PR, as the plan focuses on addressing immediate labor shortages.

3. PNP Applicants Without Employer Sponsorship Reduced PNP quotas will intensify competition, particularly for those not in employer-sponsored streams or with in-demand skills.

4. Applicants Solely Relying on Employer-Sponsored PR Pathways Fewer spots in employer-sponsored PR streams will mean more competition for these limited slots, leaving applicants with fewer options if they don’t diversify their pathways.

How “Losers” Can Become “Winners”

1. Consider Temporary Entry First Entering Canada through study or work permits can enhance the chances of PR, as temporary residents have access to priority programs like the CEC.

2. Target In-Demand Sectors Shifting focus to fields facing labor shortages, like healthcare or skilled trades, can increase applicants’ eligibility for special draws and fast-tracked PR pathways.

3. Secure a Canadian Job Offer Job offers significantly boost PR eligibility, particularly through employer-driven pathways like the PNP or other employer-sponsored streams.

4. Improve Language Skills High scores in language proficiency tests like IELTS or CELPIP (for English) or TEF (for French) can enhance applicants’ competitiveness in points-based PR systems.

5. Build Canadian Networks Networking through professional affiliations or industry events can open doors to job offers, mentorships, and PR-supportive opportunities.

6. Apply Early and Stay Informed Early applications and staying updated on policy changes and sector-specific draws can give applicants an edge in the competitive process.

The following graph illustrates the key changes in PR admissions under the 2025-2027 Immigration Levels Plan, highlighting the reductions in total PR admissions, PNP quotas, and employer-sponsored streams, as well as the increased focus on in-Canada applicants.

This visual provides a clear depiction of how the 2025-2027 Immigration Levels Plan impacts PR pathways and offers insights into how applicants can adjust their strategies.

Conclusion: The 2025-2027 Immigration Levels Plan requires strategic, long-term planning for aspiring permanent residents. With reduced quotas and a greater emphasis on in-Canada applicants, those outside Canada will need to explore temporary pathways, secure employment in key sectors, and apply early to increase their chances of selection.

Contact GH to Learn More: If you are aiming for permanent residency in Canada, contact Greenberg Hameed for personalized guidance on navigating the new immigration landscape. Our team can help you develop a comprehensive strategy to enhance your chances of success under the new PR framework.

The content of this bulletin is for informational purposes only, and is not intended to provide or be relied on as legal advice.