Canada Plans to Transition 200,000 Temporary Residents to Permanent Residency by 2027

Prime Minister Mark Carney’s government has announced plans to transition up to 200,000 temporary residents to permanent residency by the end of 2027. This initiative will operate in addition to Canada's annual immigration targets.

Under the immigration levels plan, annual targets for temporary and permanent residents will be maintained at 370,000 and 380,000 respectively through 2029. However, the new one-time measure will grant permanent residency to a specific group of individuals already living in the country on a temporary basis.

Canada’s non-permanent resident population grew significantly following the Covid-19 pandemic after rules for international student and temporary worker visas were relaxed, reaching nearly 3 million people in October 2024. This surge strained housing and services, leading to public backlash. Canada also welcomed large numbers of Ukrainian refugees following Russia's invasion in 2022.

In response, the federal government tightened rules with the goal of reducing the share of non-permanent residents to 5% of the population by the end of next year. As of July 1, the number of non-permanent residents dropped to less than 2.8 million, accounting for 6.7% of the population.

The effort to move temporary residents to permanent residency status is divided equally into two streams. One stream focuses on workers, while the second focuses on individuals in Canada for humanitarian reasons, including family reunification.

Speaking at a news conference, Prime Minister Carney noted that the qualifying individuals have effectively functioned as permanent members of their communities for years. Opposition Conservatives, however, criticized the announcement, arguing that it brings Canada's permanent resident target for 2027 to a record high while housing, healthcare, and jobs face ongoing pressures.

Immigration officials stated that provinces and territories will have the ability to choose how many people from the worker stream to take on in order to address regional labor needs. Business groups and regional leaders have previously advocated for a more localized approach to immigration.

Additionally, the government announced updates to the temporary foreign worker program. Employers applying for a labor market impact assessment (LMIA) will find that applications for lower-wage jobs will now last for two years instead of one. Provinces and territories will also receive more authority to designate eligible employers in specific communities, allowing them to employ a larger percentage of temporary workers for low-wage roles in regions experiencing labor shortages.

"Changes to immigration policies and labor frameworks directly impact workforce availability and operational planning for businesses operating regionally. Allowing provinces greater control over temporary worker programs helps address localized labor shortages, but companies must carefully navigate shifting regulatory timelines and compliance requirements as federal and regional frameworks evolve." — Dr. Shishir Gupta, Founder & CEO, StartupLanes