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Canada opens gates to H-1B visa holders, slashes mass immigration

The measures, set out in Budget 2025 and the federal government’s new 2026–2028 Immigration Levels Plan, signal a calibrated shift from mass migration to skills-driven growth.

3 min readChandigarhNov 6, 2025 07:28 AM IST

Budget 2025 introduces a new pathway allowing up to 33,000 US H-1B visa holders and other high-skilled temporary workers to transition directly to permanent residency by 2027. (File Photo)

In its sharpest immigration overhaul in decades, Canada has announced plans to slash temporary resident admissions by 25–32 per cent starting next year, while opening a new fast-track permanent residency pathway for tens of thousands of US-based H-1B visa holders and other high-skilled professionals. The measures, set out in Budget 2025 and the federal government’s new 2026–2028 Immigration Levels Plan, signal a calibrated shift from mass migration to skills-driven growth.

Under the plan, Canada will admit 385,000 new temporary residents in 2026, down 25 per cent from the 516,600 targeted in the previous 2025–2027 framework, before reducing further to 370,000 annually in 2027 and 2028. This includes 230,000 temporary foreign workers and 155,000 international students in 2026, tapering to 220,000 workers and 150,000 students the following year. Immigration lawyer Sumit Sen said the figures represent about a 30 per cent drop in temporary resident numbers compared to earlier targets.

At the same time, Budget 2025 introduces a new pathway allowing up to 33,000 US H-1B visa holders and other high-skilled temporary workers to transition directly to permanent residency by 2027. The initiative aims to attract global talent in technology, engineering and research, while countering U.S. protectionism and bolstering Canada’s innovation economy.

Permanent resident intake will remain steady at 380,000 per year through 2028. Within this, economic class immigrants, which means skilled workers, entrepreneurs, and professionals, will account for 64 per cent of total admissions, up from 59 per cent, reflecting Ottawa’s focus on aligning immigration with labour market needs.

“We’ve exceeded our capacity in recent years,” Finance Minister François-Philippe Champagne said while tabling the budget, citing a recent Environics Institute poll showing that 56 per cent of Canadians believe immigration targets are too high. Champagne said the new approach focuses on “building a stronger Canadian economy” through balanced growth.

The government said earlier steps such as a 35 per cent cut to international student approvals this year and a 50 per cent reduction in new temporary foreign worker entries, had begun to “bend the curve,” with temporary residents projected to fall below five per cent of Canada’s population by late 2027.

Budget 2025 also earmarks $1.7 billion over 13 years for international researchers and $97 million to streamline foreign credential recognition, with Immigration Minister Marc Miller describing the strategy as a move toward “high-impact” talent, particularly in rural and remote regions affected by U.S. tariffs and shifting supply chains.

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Reactions were divided. The Canadian Chamber of Commerce welcomed the plan’s economic focus but warned that deeper worker cuts could worsen shortages in agriculture and healthcare. Universities, facing a 65 per cent plunge in new study permits for 2026, described the changes as a blow to research collaboration and campus diversity. Migrant rights advocates denounced the new cuts”. This is a shocking attack on refugees and migrants,” said Syed Hussan, executive director of the Migrant Rights Network.

Economists predict a short-term easing in rental markets as population growth slows, but caution of wage inflation in lower-skilled sectors. With unemployment among recent immigrants at 11.1 per cent, twice the national rate, Ottawa’s bet is that fewer, better-matched arrivals will help restore faith in a system that brought in over one million temporary residents in 2023.

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

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