Canada Offers Path to Permanent Residency for Temporary Workers

The Canadian government has announced plans to grant permanent residency to up to 33,000 temporary work permit holders in 2026 and 2027. This initiative was outlined in the 2025 federal budget, presented to Parliament on November 4 by the minority Liberal government led by Prime Minister Mark Carney. The government expects the move to help address long-term labor shortages in Canada’s economy and labor market while creating new opportunities for migrant workers.

Temporary resident targets reduced

The target for accepting temporary residents in 2026 has been set at 385,000, a nearly 43 percent decrease compared to 673,650 in 2025. The number of international students has been cut to 155,000. The target for temporary foreign workers has also been reduced by 37 percent to 230,000.

Permanent residency (PR) targets unchanged

Canada’s overall target for permanent residents in 2026 remains 380,000. Of these, 64 percent or 239,800 will come under economic immigration programs. Family reunification will account for 84,000, and 56,200 will be granted PR under refugee and humanitarian categories.

Priority to rural regions and specific sectors

The government says special attention will be given to rural and remote areas where labor shortages have been a long-standing issue. Changes in tariffs and rising costs have affected business activities in these regions, so focus is on retaining skilled and experienced foreign workers permanently.

Changes to the work permit program

Prime Minister Mark Carney stated in September, “The Temporary Foreign Worker Program (TFWP) needs restructuring to align with actual labor demand in specific sectors and regions.” While the budget did not specify exact numbers, it is expected that more work permits may be issued under the International Mobility Program (IMP).

No major practical change

Reducing targets for temporary residents does not mean a sudden halt to their entry, the government says. There is already a shortfall in meeting 2025 targets—only 42 percent of temporary foreign workers and 29 percent of international students have arrived in Canada from January to August this year.

Analysts say the new plan could be a significant step in rebalancing Canada’s long-term immigration strategy and bringing stability to the domestic labor market.

Khaborwala/TSN