Canada Lists Big Rule Shifts for Students and Temporary Workers

Canada prepares for major changes to its immigration system. These updates shape how international students and temporary foreign workers build their future here. The new 2026–2028 plan and next year’s budget outline what lies ahead. Many expect these changes to roll out in the coming months.

Changes for Temporary Foreign Workers

Faster Path to Permanent Residence
The federal government plans a quicker route to permanent residence for many workers. The plan aims to grant PR to up to 33,000 temporary workers in 2026 and 2027. Officials have not shared full details yet. They say they will focus on people who work in Canada, pay taxes, support their local communities, and hold jobs in sectors that face worker shortages.

A similar program opened in 2021 and reached its cap on the first day. Over the last year, officials also invited more workers with Canadian job experience. One report showed that “64% of candidates who had been invited to apply for PR in 2024 had at least one year of eligible Canadian work experience.”

Tighter Rules for Work Permits
Prime Minister Mark Carney said in September 2025 that the Temporary Foreign Worker Program “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.” This signals tighter rules ahead.

Last year, the government paused LMIA processing in regions with unemployment of 6% or higher. LMIAs are required for most TFWP work permits. The new levels plan also cuts TFWP admissions for 2026 from 82,000 to 60,000. This drop suggests stricter rules for LMIA approval and fewer openings for new workers.

New Sector-Based Pathways
Canada now targets workers in key fields. Several new PR and work permit options will begin soon.
These include:
• A new PR path for H1-B visa holders, with a focus on tech, health care, and research.
• A PR path for up to 6,000 undocumented construction workers announced earlier this year.
• A new agriculture and fish processing stream, linked to a special work permit.

Some older pathways will reopen in 2026, including the Home Care Worker pilots. Temporary workers with Canadian job experience will have strong chances under these programs.

Changes for International Students

Study Permit Cap Expected to Shrink
Canada limited study permit applications for the past two years. A new cap will arrive in January 2026. The number will likely drop, as the next plan cuts new international student arrivals from 305,900 to 155,000. This may make applications harder. But Canada did not reach its student target in 2025, so the impact may be less severe than expected.

Graduate Students Gain Exemptions
From January 1, 2026, graduate students no longer need a provincial attestation letter. Master’s and PhD students will also get faster processing. Many may receive documents in as little as two weeks. This creates a clearer path for advanced learners who plan to study and build careers in Canada.

Upcoming PGWP Eligibility Changes
In June 2025, the government changed the list of programs that qualify for a Post-Graduation Work Permit. The removal of 178 programs will take effect in early 2026. Until then, students in these programs still qualify. Students who plan to work in Canada must choose a PGWP-eligible program.