Large Decrease in Arrivals of Temporary Residents in Canada

In recent months, Canada has seen a large decrease in arrivals of temporary residents. This trend has raised questions about the country’s immigration policies, labor market needs, and future pathways for international students and foreign workers. While Canada has long relied on temporary residents to fill skill shortages and support economic growth, the numbers are showing a downward shift.

At Visa Master Canada, we help applicants understand these changes and explore alternative pathways to study, work, and settle permanently in Canada.

Why Is There a Decrease in Temporary Residents in Canada?

Several key factors explain the decrease in temporary residents in Canada in 2025:

1. Policy Adjustments by IRCC
   • The Canadian government recently introduced stricter caps on temporary resident permits, particularly in categories like study permits and work permits.
   • This change was aimed at balancing the housing crisis and ensuring sustainable population growth.
2. Housing and Affordability Concerns
   • Canada is facing a housing shortage, which has made it challenging to accommodate the rising number of newcomers.
   • Limiting temporary residents is seen as a measure to reduce pressure on housing demand.
3. Shifts in Study Permit Approvals
   • International students form a large share of temporary residents in Canada.
   • With the new rules requiring a Provincial Attestation Letter (PAL), approvals for study permits have slowed down, leading to fewer arrivals.
4. Labor Market Adjustments
   • Certain industries that previously relied heavily on temporary foreign workers are now prioritizing Canadian workers.
   • However, sectors like healthcare, agriculture, and construction still express a strong need for foreign talent.

Impact of the Decrease in Temporary Residents in Canada

The decline in temporary resident arrivals is reshaping Canada’s immigration and economy:

• International Students: Fewer approvals mean reduced enrollment at Canadian colleges and universities.
• Employers: Industries dependent on foreign workers are experiencing labor shortages.
• Permanent Residency Pathways: Since many permanent residents start as temporary workers or students, the decline may also impact future PR application numbers.
• Communities: Smaller towns that rely on international students and workers for economic growth are noticing the effects.

What Does This Mean for Future Immigration?

Although there is a decrease in temporary residents in Canada, the government continues to prioritize permanent residency pathways through Express Entry, Provincial Nominee Programs (PNPs), and family sponsorships.

Key takeaways for applicants:

• Temporary residents may face more restrictions, but PR pathways remain strong.
• IRCC is encouraging skilled workers to apply directly for permanent residency through targeted draws.
• Canada’s long-term immigration strategy still aims to welcome over 400,000 new permanent residents annually.

How Visa Master Canada Can Help

At Visa Master Canada, we guide students, workers, and skilled immigrants through the best available options:

• Assessing if a temporary visa is still the right choice for you
• Exploring Express Entry and Provincial Nominee Programs without relying solely on temporary permits
• Helping international students navigate the new study permit rules
• Offering support to employers who need to hire foreign talent

👉 Whether you are applying for a study permit, work permit, or permanent residency, Visa Master Canada ensures your application is prepared for success.

The decrease in temporary residents in Canada reflects recent policy changes aimed at managing housing demand and shaping immigration priorities. While this may create challenges for international students and temporary workers, Canada still values newcomers and offers multiple permanent residency pathways.

If you are planning to study, work, or settle in Canada, now is the time to explore the right immigration strategy. Connect with Visa Master Canada today and let our experts help you achieve your Canadian dream.