The Canada Immigration Levels Plan 2026-2028 brings significant changes in study and work for international students and temporary foreign workers (TFWs). With new policy shifts, several new developments can be expected in the months ahead, hinting at transformative years for those planning to study, work and settle in Canada. The Immigration Level Plan 2026-2028 and Budget 2025 provides important changes to look forward to.
Faster pathway to Permanent Residency from Temporary Residency
As per Immigration Levels Plan 2026-2028, up to 33,000 temporary worker residents will be granted permanent residency in 2026 and 2027. The priority for temporary resident to permanent resident Canada will be for those who are already working in Canada, that is, individuals who are contributing to the country through taxes, working in specific in-demand industries and have built strong ties in their communities. Over the last year, applicants with Canadian work experience are preferred; for instance, 64% of applicants invited to apply for PR through Express Entry have at least 1 year of qualifying Canadian work experience.
More control over eligibility criteria for the Temporary Foreign Worker Program (TFWP)
The Temporary Foreign Worker Program Canada (TFWP) will focus more on specific sectors and regions with higher demand for skilled workers. A year ago, to manage TFWP intake, the government halted processing of Labour Market Impact Assessments (LMIs) (an essential prerequisite for TFWP) in areas with a 6% or higher unemployment rate. The Immigration Levels Plan for 2026 projects a reduction in TFWP arrivals to 60,000 from 82,000 last year, indicating that LMIA eligibility criteria will be made more stringent.
Introduction of new sector-specific PR Canada pathways and Work Permit Streams
Canada's immigration strategy has changed remarkably. As per the new plan, there is a growing emphasis given on selecting skilled, experienced candidates aligned with labour market requirements. As part of this, more sector-specific permanent residency pathways and work permit streams will be launched. The biggest advantage of this will be for temporary foreign workers already in Canada, as Canadian work experience is a key selection factor in most sector-specific PR Canada pathways.
In January 2026, the government will announce a new Canada study permit cap 2026. In recent years, the study permit cap has been reduced, and, according to the latest Immigration Levels Plans, the intake of international students for 2026 was reduced from 305,900 in the previous plan to 155,000. With the massive cut in projected student arrivals, a corresponding reduction in study permits is expected in 2026. Since the target for 2025 student admissions was not fulfilled, the low study permit cap may not cause a severe impact, especially for students with compelling applications and excellent academic profiles.
This key policy shift gives Postgraduate students a favourable exception. Master's and Doctoral (PhD) students are exempt from the Canada study permit cap 2026. In addition, they need not submit the Provincial or Territorial Attestation Letter (PAL/TAL), and their application processing will be expedited, as will that of the accompanying members, to as fast as two weeks.
Several study programs were to be removed from the Post-Graduation Work Permit (PGWP) eligible list as announced in June 2025; however, this removal will take place only in early 2026. 178 programs will be affected, and those looking for work after their studies and future permanent residence should carefully choose a program and check PGWP eligibility changes Canada before applying.
To understand more about these policy changes and plan your study and work in Canada effectively, Contact ImmiLaw Global today!
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