New Canadian government policy, prioritizes skilled workers and offers residency pathway for 33,000 United States-based H-1B visa holders by the year 2027.
Canada has unveiled sweeping reforms to its immigration system, announcing plans to slash the number of temporary residents by nearly one-third while opening a new route to permanent residency for skilled foreign professionals, including tens of thousands currently working in the United States.
The measures, revealed as part of Budget 2025 and the federal government’s 2026–2028 Immigration Levels Plan, represent the most dramatic shift in Canadian immigration policy in decades. The strategy aims to ease pressure on the housing market and healthcare system, while recalibrating immigration to support key sectors of the economy.
A cornerstone of the reform is a new immigration stream designed to attract up to 33,000 highly skilled U.S.-based workers, such as those holding H-1B visas, who have faced tightening immigration policies south of the border. The initiative is set to begin offering permanent residency applications directly to eligible professionals by 2027.
“We’ve exceeded our capacity in recent years,” Finance Minister François-Philippe Champagne told lawmakers while presenting the plan. “Our goal now is to build a stronger, more sustainable Canadian economy by focusing on balance, resilience, and skill-based growth.”
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Though the total number of permanent residents will remain steady at 380,000 annually through 2028, the federal government says it will shift toward a more skills-driven intake. By 2028, economic-class immigrants — including entrepreneurs and skilled workers — will account for 64% of new arrivals, up from 59%. This move aligns immigration more closely with labor market needs.
The reforms also come amid changing public attitudes. A recent Environics Institute survey found that 56% of Canadians now view immigration levels as too high — a significant shift from the predominantly positive outlook of recent years.
Canada’s labor market, however, faces mounting shortages. According to Employment and Social Development Canada (ESDC), the country will need to fill 8.1 million jobs between now and 2033, with more than 100 occupations expected to experience critical gaps — especially in healthcare, construction, and technology.
To support the shift, Ottawa has earmarked $1.7 billion over 13 years to attract top global researchers and $97 million to speed up the recognition of foreign credentials in fields such as engineering and health sciences.
Immigration Minister Marc Miller called the reforms “a shift toward high-impact talent,” emphasizing the need to adapt workforce strategies to evolving global trade conditions and emerging industries.
By late 2027, temporary residents are projected to make up less than 5% of Canada’s population — a sharp reduction from record levels in 2023, when demand for study permits and work visas surged.
The government has already moved to rein in population growth by cutting international student visas by 35% and reducing temporary foreign worker entries by half.
Backlogs in immigration processing are also improving. As of March 2025, fewer than 822,000 applications were pending, down nearly 8% since January 2025.
The changes are set to redefine Canada’s role as a magnet for global talent — even as it recalibrates to ensure long-term economic and social stability.
Africa Daily News, New York
