Canada To Cut Immigration By Over 20% Amid Housing, Infrastructure Strains

Prime Minister Justin Trudeau has announced that Canada will significantly reduce its immigration intake in the coming years, marking a sharp pivot for a nation that has long championed immigration as a means of economic growth and vitality.

Canada is set to now admit 395,000 new permanent residents in 2025, down 21 percent from last year’s target of 500,000.

That figure would decrease further to 380,000 in 2026 and 365,000 in 2027. Additionally, new limits will apply to temporary residents, such as international students and foreign workers, with a projected reduction of nearly 450,000 by 2025.

In a news conference, Trudeau acknowledged that the country’s ambitious immigration agenda, originally aimed at addressing labour shortages and fostering population growth, had not achieved the “right balance.”

He stated, “Our immigration system has always been responsible and flexible. But in trying to meet labour needs and sustain population growth, we didn’t get the balance quite right.”

Since his election in 2015, Trudeau has championed rising immigration rates, with a record-setting target in 2022 to address pandemic-driven labour shortages.

This approach has set Canada apart from other nations where immigration remains politically contentious, particularly in the United States, where Republican presidential nominee Donald Trump has criticised immigration policies, and across Europe, where anti-immigrant sentiments have fuelled far-right political victories.

The policy shift has prompted mixed reactions. The Bank of Montreal’s director of economics, Robert Kavcic, said the reduced immigration targets would ease pressure on the economy and infrastructure, “especially in the housing sector,” where rapid population growth has driven demand beyond supply.

However, more than 100 civil society groups, including several of Canada’s largest labour unions, criticised the government’s decision. In a letter, they stated, “This government was elected on a pro-immigration platform and promised permanent resident status for migrant workers, students, and undocumented people. Not delivering on them will be remembered at the ballot box.”

The policy change comes as public opinion in Canada shifts against higher immigration levels, driven by concerns over housing costs, health-care access, and infrastructure strains.

A recent poll by the Environics Institute showed that nearly 60 percent of Canadians believe there is “too much immigration”—the highest in 25 years.

“The balance of public opinion on immigration has effectively flipped from being acceptable to problematic,” the pollster said.

Canada’s population saw a 3.2 percent increase in 2023, largely fuelled by immigration, reaching over 40 million.

This growth rate outpaced other G7 countries and even high-birthrate nations like India. Most of the increase came from temporary migrants such as international students, who have been actively recruited by universities and colleges due to higher tuition rates. Temporary residents now constitute 7.2 percent of Canada’s population.

Critics argued that Canada’s infrastructure has failed to keep up with the rapid influx of migrants. Deputy Governor of the Bank of Canada Toni Gravelle recently attributed the housing crunch to “structural challenges,” such as zoning restrictions and a shortage of construction workers.

The Canadian Chamber of Commerce also expressed disappointment over the revised immigration targets, highlighting that immigration is “a key driver of economic growth.” Diana Palmerin-Velasco, a senior director at the chamber, commented, “The future of Canada depends on getting immigration right. We can do better.”

Immigration Minister Marc Miller defended the government’s decision, acknowledging that “the volume of migration has contributed to affordability challenges.”

However, he cautioned against blaming immigrants for housing or economic issues. “It is easy to blame immigrants for everything,” Miller said, adding that housing supply issues also stem from broader policy challenges, many of which fall under provincial or local jurisdictions.

The Trudeau administration has already introduced measures to curb immigration, including a freeze on the number of permanent residents, a temporary limit on international student visas, and a pledge to reduce temporary residents to 5 percent of the population within three years.

For Trudeau, who has faced mounting pressure over housing and economic issues and whose Liberal Party now trails the Conservatives in the polls, the immigration policy shift marks a significant recalibration.

Addressing his caucus this week, he reaffirmed his commitment to serving, even as some Liberal lawmakers called for his resignation.

Boluwatife Enome

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