Canada has released its Immigration Levels Plan for 2026–2028, and the changes will reshape how international students study, work, and move toward permanent residence in the coming years. The biggest change is a sharp reduction in the number of new international student admissions starting in 2026. While this has raised concerns, the plan includes several developments that may actually benefit students already in Canada.

Less Competition for Students Already in Canada

Beginning in 2026, Canada will accept about half as many new international students as it had planned in earlier targets. This means fewer study permits issued, smaller incoming classes, and a tighter cap on new arrivals.

For students already studying in Canada, this drop can work in their favour. When fewer students come into the country, fewer graduates apply for Post-Graduation Work Permits in future years. That means less competition for entry-level jobs and for permanent residence programs that rely on Canadian work experience.

This shift strengthens the position of international students who already live, study, and work in Canada. With smaller incoming cohorts, those in the country now may find it easier to stand out, secure work opportunities, and progress into permanent resident pathways.

Canada Still Prioritizes In-Canada PR Applicants

Despite reducing temporary resident admissions, Canada continues to place economic immigration at the centre of its permanent residence strategy. A large share of future PR spots will go to candidates with Canadian work experience.

This approach directly supports former international students who can gain experience through the Post-Graduation Work Permit. Programs such as the Canadian Experience Class rely on domestic work history, which gives current students and graduates a strong edge over applicants abroad.

Stability in economic immigration targets also signals that Canada intends to keep rewarding people who already contribute to its workforce and economy.

More Provincial Nominee Program Spaces Help Graduates

Canada plans to significantly expand Provincial Nominee Program admissions in 2026. This increase creates more chances for international graduates to secure a nomination, which is one of the most reliable routes to permanent residence.

Many provinces have student-specific immigration streams, and the higher target could allow provinces to restore pathways paused in 2025 or add new options. Provinces may also have more freedom to nominate graduates who studied locally and plan to stay long-term.

More PNP space means more opportunities for students who qualify in areas such as health care, tech, trades, hospitality, and regional in-demand sectors.

Students Remain a Large Share of Temporary Residents

Even with reduced admissions, international students will still make up a major portion of Canada’s temporary resident community. They are expected to account for around 40 percent of all temporary residents entering the country between 2026 and 2028.

This shows that international students continue to play an important role in Canada’s population growth, workforce, and long-term immigration plans.

Targets Reflect Trends Already Seen in 2025

The sharp drop in targets might seem surprising, but Canada has already been trending toward lower international student numbers. In 2025, study permit issuance fell far below earlier projections. The new targets simply bring planning closer to what is already happening on the ground, with fewer study permits being processed and approved.

Exemptions for Master’s and PhD Students Begin in 2026

Starting January 1, 2026, the federal government will exempt Master’s and PhD students from the national study permit cap. Doctoral students and their families will also receive faster processing. This change signals Canada’s focus on advanced research, innovation, and high-skill training.

Final Thoughts

Canada’s plan introduces major changes, but not all are negative. Students already in Canada may find themselves in a stronger position, with clearer pathways to permanent residence and less competition for work experience. At the same time, graduate-level applicants gain new advantages through study permit exemptions.

These shifts show that while Canada is reducing overall student numbers, it still sees international students as essential to its future.

Share this article

More Blogs

What You Must Declare at the Canadian Border When You Arrive
  • November 28, 2025
  • What You Must Declare at the Canadian Border When You Arrive
A Newcomer’s Guide to Understanding Ontario’s Healthcare System
  • November 27, 2025
  • A Newcomer’s Guide to Understanding Ontario’s Healthcare System