Just In: New Immigration Plans for International Students and Immigrants 2025

In May 2025, Prime Minister Mark Carney unveiled a sweeping new immigration strategy designed to balance Canada’s economic growth with housing capacity, infrastructure, and labor demands. The plan introduces pivotal changes that will directly affect prospective immigrants, temporary foreign workers, and especially international students.

If you’re planning to move, study, or work in Canada — or are already there — here’s what you need to know about Mark Carney’s new plan for immigrants and international students.

What’s Changing Under Mark Carney’s Immigration Agenda?

Mark Carney’s approach marks a shift from previous open-door immigration policies. It focuses on sustainability, workforce integration, and relieving pressure on housing and infrastructure.

1. Capping Immigration Levels

Permanent Residents (PRs):

Carney’s government plans to cap the annual intake of permanent residents to below 1% of Canada’s population — around 365,000 new PRs by 2027. This move aims to stabilize population growth and prevent system overloads in housing, healthcare, and public services.

Temporary Residents (TRs):

One of the boldest decisions is the goal to reduce temporary residents to under 5% of the population by 2028, down from the current 7.3%. This includes foreign workers, tourists, and international students. The goal is to prioritize quality over quantity.

2. Prioritizing Temporary-to-Permanent Transitions

Rather than continue bringing in millions of new people annually, the Carney plan focuses on integrating those who are already in the system.

Canada currently hosts over 4 million temporary residents. Carney’s plan gives preference to these individuals when transitioning to permanent status.

This could be good news for:

•International students already studying in Canada

•Work permit holders seeking PR

•Refugees and humanitarian migrants

3. New Rules for International Students

Study Permit Caps:

Canada has introduced a two-year cap on international study permits, a move that’s already affecting admissions to colleges and universities.

Why? The government believes that a rapid increase in international students has strained:

•Housing availability

•Education infrastructure

•Healthcare access in college towns

Now, only institutions with strong housing plans and high standards will be allowed to sponsor study permits.

PGWP Changes:

The Post-Graduation Work Permit (PGWP) program will undergo significant changes. Only students graduating from public institutions or programs directly aligned with labor market needs will be eligible for PGWPs.

This means:

•Graduates of private career colleges may not qualify

•Fields like healthcare, engineering, and tech may be prioritized

Spousal Open Work Permits (SOWP):

A major change for married international students is that only spouses of Master’s, PhD, or certain professional programs will now be eligible for SOWPs.

This is a huge shift from the previous system where nearly all spouses could apply.

4. Housing and Infrastructure Reform

To offset the strain of immigration on the housing market, the government has:

•Announced $25 billion in housing investments

•Offered GST cuts on homes priced between $1 million and $1.5 million

•Encouraged the building of affordable rental housing for both locals and newcomers

This means future immigration approvals will also be tied to housing readiness in host cities.

5. What It Means for Immigrants

If you’re planning to immigrate to Canada, the landscape is now more competitive.

Key Takeaways:

•Immigration caps will favor skilled workers in key sectors

•Temporary residents in Canada may have an advantage over applicants abroad

•Financial proof and language skills (IELTS, CELPIP) will become more critical

•Pathways like Express Entry, PNPs, and AIP may include more regional conditions

Immigrants who meet Canada’s labor shortages and housing policy compliance will have a better chance of success.

6. What It Means for International Students

The dream of studying and staying in Canada is still alive — but with conditions.

Here’s what you need to succeed:

•Apply only to Designated Learning Institutions (DLIs) with housing plans

•Choose programs that align with in-demand jobs (e.g., nursing, IT, logistics)

•Be financially stable and transparent in your application documents

•Expect longer wait times and more documentation requests

•Plan ahead for PGWP eligibility — not all programs will qualify

Also, avoid “short-cut” agencies promising guaranteed visas or fast-tracked permits. The scrutiny level is higher than ever.

7. How to Prepare for the Policy Shift

Whether you’re already in Canada or planning to come, these steps can help you stay ahead:

For International Students:

•Verify your school’s DLI status

•Choose fields with high PR pathways (like healthcare or trades)

•Budget wisely and prove financial capacity

•Understand new housing requirements

For Immigrants:

•Create an Express Entry profile with updated NOC and TEER codes

•Gather experience in high-demand industries

•Consider rural and regional programs (AIP, RNIP, PNP)

•Stay updated on IRCC policy changes and deadlines

Final Thoughts

Mark Carney’s new immigration plan is a strategic shift meant to address real problems — but it also creates new hurdles. For serious immigrants and international students who meet the right criteria, Canada is still a land of opportunity.

But gone are the days of “open doors for all.” The future belongs to those who align with Canada’s needs, contribute to the economy, and plan their journey wisely.