Updated: October 24, 2025 | Source: Business Standard & IRCC Official Data

Canadian Prime Minister Mark Carney announced on October 22, 2025, in Ottawa that the government will launch a new immigration plan in the 2025 budget. This plan aims to attract high-skilled foreign talent, particularly in tech, through a “Talent Strategy” to address Canada’s labor market gaps. It aligns immigration levels with workforce needs and capacity, including skills training and apprenticeship programs for scientists and innovators.

Background and Motivation

Canada faces a critical labor shortage. According to Virginia Machiavello, CEO of Machiavello Consulting Limited, in an MSM Unify Live Expert Session, Canada’s fertility rate of 1.3 is insufficient to meet labor demands through domestic graduates, especially in manufacturing, resource commercialization, and tech sectors.

Additionally, U.S. President Donald Trump’s September 2025 executive order imposing a $100,000 fee on new H-1B visas, despite partial exemptions, has sparked discontent among tech firms. This creates an opportunity for Canada to attract tech talent originally bound for the U.S. Carney noted in a September London speech: “There’s a clear opportunity to attract those who would have otherwise received so-called H-1B visas. These workers are often in tech and willing to relocate for work.”

Key Details and Categories

• Talent Strategy: Targets scientists, innovators, and tech professionals with skills training and apprenticeships in fields like computer programming and engineering. Updates the Global Skills Strategy for two-week expedited work permits.
• Immigration Levels Adjustment: 2025-2027 plan sets permanent resident targets at 395,000 for 2025 (20% reduction from 2024), 380,000 for 2026, and 365,000 for 2027, aligning with labor needs and capacity.
• Target Groups: Prioritizes H-1B visa applicants, tech workers, international students, and temporary foreign workers. Over 40% of 2025 permanent residents will transition from temporary residents.
• Economic Immigration Focus: Approximately 62% economic immigrants, targeting healthcare, trades, and high-growth industries. Streamlined foreign credential recognition with provincial cooperation.
• Francophone Community Support: 8.5% Francophone immigration target outside Quebec in 2025, rising to 10% by 2027.

Data and Trends

From January to August 2025, new international student arrivals dropped by 132,505 (nearly 60%), with total arrivals (students and workers) down 278,900 (57%) and work permits down 146,395 (50%). These trends reflect continued restrictions from Justin Trudeau’s era, but Carney’s government aims to rebuild public support.

Despite a cost-of-living crisis (e.g., housing affordability and high rents) driving immigration support to a decades-low, industry leaders stress Canada cannot rely solely on domestic talent. Temporary resident targets are set below 5% of the population.

Additional Reference Information

According to Immigration, Refugees and Citizenship Canada (IRCC), the 2025 permanent resident target is 395,000, with over 62% economic immigrants. The new plan may further increase this share, effective from 2026. Visit canada.ca for details.

Carney’s government builds on Trudeau-era restrictions but emphasizes sustainable growth. Experts predict the plan will position Canada as a leader in global talent competition, particularly in AI, clean energy, and healthcare. Temporary resident numbers are projected to drop from 7.25% to 5% by 2025.