Canada Immigration Update: PM Carney Sets New PR Targets

Prime Minister Carney Reaffirms Canada’s Immigration Priorities in New Mandate Letter

• PM Mark Carney outlines two key immigration goals in his first cabinet mandate letter.
• Focus is on balancing sustainable immigration levels with economic growth.
• Targeted permanent resident numbers to remain under 1% of population beyond 2027.
• Canada aims to attract top global talent through updates to the Global Skills Strategy.
• Initiatives will support high-growth sectors and streamline foreign credential recognition.
• Recent policy changes reflect growing concerns over housing and public service pressures.

Canada’s new Prime Minister, Mark Carney, isn’t wasting any time when it comes to setting the tone for immigration policy. In his first official mandate letter to the federal cabinet, Carney made it clear that immigration reform remains a cornerstone of his government’s agenda—balancing Canada’s long-term economic growth with practical limits on infrastructure and housing capacity.

Let’s take a closer look at what the new directive means for immigrants, employers, and Canada as a whole.

What Is a Mandate Letter, Anyway?

For those not familiar, a mandate letter is a formal document sent by the Prime Minister to each member of their cabinet. Think of it as a strategic blueprint—one that outlines the key priorities ministers are expected to focus on during their term. These letters can include specific goals, policy directions, and even deadlines.

While it’s not yet clear if Carney will issue separate letters to individual ministers (as was the case in past administrations), the immigration priorities were prominently featured in the overall cabinet directive—highlighting their national significance.

1. Returning Immigration to Sustainable Levels

One of the most notable goals in Carney’s mandate letter is to bring immigration levels back to what he calls “sustainable levels.” This echoes a central campaign promise made by the Liberals during the last federal election.

Over the past few years, permanent resident admissions in Canada have reached record highs. While this helped stimulate economic activity and combat labour shortages, it also added pressure to Canada’s housing market and public services. Carney’s administration is now looking to ease that pressure by capping immigration growth.

The plan suggests permanent resident admissions will be held at below 1% of Canada’s total population annually beyond 2027. With Canada’s population expected to hit 41.5 million in 2025, the federal government has already set targets in line with this limit.

• 2025: 395,000 new permanent residents
• 2026: 380,000
• 2027: 365,000

By gradually reducing intake targets, the government hopes to create a more manageable pace of growth—allowing communities, infrastructure, and services to catch up.

2. Attracting Top Global Talent

While Carney’s mandate includes a focus on moderation, it also emphasizes the importance of smart immigration. Specifically, the government wants to ensure that Canada remains competitive in the global race for highly skilled professionals.

To that end, the Liberals plan to revamp the Global Skills Strategy (GSS)—a program that gives Canadian employers quicker access to foreign talent. The GSS allows eligible skilled workers to receive work permit processing in as little as two weeks, making it a valuable tool for tech companies, start-ups, and other fast-moving industries.

According to the mandate letter, the government will:

• Enhance support for high-growth Canadian businesses and entrepreneurs to attract international talent
• Focus on recruiting skilled professionals from the United States
• Collaborate with provinces and territories to improve recognition of foreign credentials and work experience

These changes aim to make it easier for newcomers to integrate into the Canadian workforce—helping to address skill shortages in healthcare, construction, technology, and other vital sectors.

Putting It in Context: Why the Shift?

Carney’s approach builds on recent changes made under former Immigration Minister Marc Miller and the previous Trudeau-led administration. As housing affordability and service availability became growing concerns, the Liberals began tightening immigration policies across both temporary and permanent streams.

Some of the major moves included:

• Reducing new study and work permit intakes
• Scaling back permanent resident targets to pre-pandemic levels
• Pausing low-wage LMIA applications in high-unemployment metro areas
• Prioritizing in-Canada immigration candidates over overseas applicants
• Capping international student admissions
• Revising Express Entry occupational categories
• Tightening PGWP eligibility requirements
• Creating new PR streams for trades and skilled construction workers
• Restricting family member Open Work Permit eligibility
• Removing LMIA-based points from the Express Entry system

This evolving landscape signals a more nuanced approach—one that balances population growth with the realities of housing availability, public services, and labour market needs.

Final Thoughts: What It Means for You

Whether you’re an immigrant planning to move to Canada, an employer seeking international talent, or simply someone interested in public policy, these changes matter. Canada is redefining its immigration strategy, aiming for a system that’s both welcoming and sustainable.

As we move forward, we can expect more targeted immigration streams, stricter eligibility criteria in some areas, and faster pathways for those with in-demand skills. The goal? To keep Canada competitive, fair, and livable for everyone.

Want to stay in the loop? Don’t miss key updates as immigration policies evolve—subscribe to our newsletter and be the first to know what’s changing.

For more details on Canada’s immigration programs, check out our guides on Express Entry, work permits, and permanent residence pathways.