The Canadian government recently announced a supplementary Immigration Levels Plan for the years 2025/2026, which will see a decrease in the number of permanent residents being admitted to Canada, from 485,000 in 2024, to 395,000 in 2025, and 380,000 in 2026.

The number of permanent residents processed under the federal Express Entry (EE) program, geared towards high skilled workers already employed in Canada, will marginally increase in 2025, with the focus being on processing applications of individuals already based in Canada with a valid offer of Canadian employment. A significant portion of these applicants will continue to be chosen in separate “preferred” draws based on occupation, as has been the case over the past year.

The Provincial Nominee Programs (“PNPs”) will be most impacted by these cuts, and we expect to see their collective allotment reduced by almost 50%, from 105,500 to 55,000. The PNP pathways offered by the provinces have been a great alternative to the Express Entry program, offering an alternative path to permanent residence for skilled workers, particularly those who are 45 years of age or older or do not obtain maximum scores for language proficiency. Moving forward with these cuts, we can expect to see the PNP pathways become more competitive with the focus of driving individuals towards the federal Express Entry system, making obtaining permanent residence in Canada substantially harder for certain individuals and their families.

The T&S Americas team will be monitoring these changes and will provide further updates as we see the impact of this plan starting in 2025.