Canada’s 2025–2027 Immigration Plan and Staffing Cuts: What It Means for Applicants

Immigration, Refugees and Citizenship Canada (IRCC) has recently announced both staffing reductions and major policy changes under its 2025–2027 Immigration Levels Plan. These developments could significantly impact anyone currently applying, or planning to apply for temporary or permanent residence in Canada.

Here’s what you need to know and how you can prepare.

🚨 Staffing Reductions and Longer Processing Times

Due to federal cost-cutting measures, IRCC is scaling back staffing across several processing centres. This has already led to noticeable increases in application processing times.

As of July 2025, the estimated processing time for work permit applications and extensions has risen to up to 181 days (approximately six months). These delays are affecting not just foreign workers, but also their employers and families waiting for reunification.

As of July 2025, the average processing time for spousal sponsorship applications for permanent residence in Canada is up to 11 months for outland applications and up to 34 months (over two years) for inland applications.

📉 Lower Immigration Targets for 2025–2027

The new Immigration Levels Plan outlines a significant reduction in permanent resident admissions over the next three years:

• 395,000 permanent residents in 2025

• 380,000 in 2026

• 365,000 in 2027

This represents a 20% decrease from the earlier target of 500,000 annual admissions set for 2023–2024.

For the first time, IRCC has also introduced caps on temporary resident entries, such as international students and foreign workers. The government is targeting:

• 673,650 temporary residents in 2025

• 516,600 in 2026

• 543,600 in 2027

Why These Changes Are Happening

These policy changes are in direct response to growing public and political pressure to better manage Canada's infrastructure, housing supply, healthcare system, and public services. By reducing the volume of new arrivals, the federal government hopes to relieve strain on local resources while maintaining a steady flow of skilled newcomers.

⚠️ What Does This Mean for You?

Here’s how these changes could impact various categories of immigration applicants:

• Express Entry & Provincial Nominee Programs (PNP)

  • Increased competition for fewer permanent residence slots; Comprehensive Ranking System (CRS) scores may rise.

• Spousal & Family Sponsorship

  • These continue to represent about 22% of total permanent resident admissions, but overall intake may slow down.

• Work & Study Permits

  • New intake caps could lead to longer waits and more refusals, especially in oversubscribed programs.

• Open Work Permit Extensions

  • Expect significant delays in processing, particularly for spouses of international students or workers.

In addition, study permit approvals have dropped by approximately 10%, from 606,000 projected permits to roughly 437,000, and eligibility for the Post-Graduation Work Permit (PGWP) is now more limited depending on your program of study.

Practical Tips for Future Applicants

1. Submit Applications Early: Whether you're applying under the economic class or through spousal sponsorship, avoid delays by submitting a complete application well ahead of deadlines.

2. Improve Your Express Entry Profile: Raise your language test scores, gain Canadian work or study experience, or consider applying through a Provincial Nominee Program (PNP) for additional points.

3. Keep Documents Updated: Ensure police clearances, medical exams, and supporting relationship documentation are current and accurate at the time of application.

4. Expect and Plan for Delays: Processing times are longer, especially for work permits and spousal sponsorships, so make backup plans if your status or timeline is uncertain.

5. Get Professional Help Early: A legal review can reduce the risk of refusal or IRCC requests for additional documents (often called a Request for Further Information or RFI).

Final Thoughts

Canada’s immigration system is shifting toward a more controlled and sustainable model. While the pathway to permanent or temporary status remains open, the process is becoming increasingly competitive and regulated.

If you're preparing to submit an immigration application, now is the time to act, and to ensure your submission is complete, strategic, and well-supported.

📩 If you’d like assistance evaluating your eligibility, planning your application strategy, or legal representation in immigration applications please do not hesitate to reach out to our experienced law firm at rharding@hardingimmigrationlaw.com or book a consultation here.