Canada’s Immigration Levels Plan 2026–2028 has brought major changes that every international student must understand before planning their study or immigration journey. The federal government has announced a 50% reduction in international student admissions starting in 2026, reshaping the future of education, work, and immigration pathways in Canada.

While these changes may seem concerning at first, they also bring unique opportunities for students already in Canada or those aiming for graduate-level programs such as Master’s or PhDs. Here’s a detailed breakdown of what the new plan means — and how ICC Immigration can help you secure your future in Canada.


📉 Canada Cuts International Student Targets by Half

Under the new Immigration Levels Plan 2026–2028, the number of new international students allowed to enter Canada will be significantly reduced.

Year Target (2026–2028 Plan) Previous Target (2025–2027 Plan)
2026 155,000 305,900
2027 150,000 305,900
2028 150,000

That’s nearly a 50% cut compared to earlier projections. The government aims to balance the temporary resident population while still supporting long-term economic growth through permanent residency (PR).

However, this also means less competition for students already in Canada — giving them better access to jobs, work permits, and PR pathways.


🎓 Advantage for Students Already in Canada

For students currently enrolled or about to graduate, this shift could actually work in your favor. With fewer newcomers entering, competition for entry-level jobs and PR pathways such as the Canadian Experience Class (CEC) or Provincial Nominee Programs (PNP) may decrease.

Graduates with a Post-Graduation Work Permit (PGWP) will have a clearer route to Canadian work experience, which is a key eligibility factor for Express Entry and CEC.

Fewer new study permits being issued now means that, in a few years, there will be fewer PGWP holders, reducing competition in both the labor market and immigration streams.


💼 Canada Prioritizing In-Canada Applicants for PR

According to the plan, 64% of all PR admissions in 2026 will come through economic immigration programs, such as Express Entry, PNPs, and CEC.

The government clearly stated that immigration targets for temporary and permanent residents are being aligned — with an emphasis on transitioning those already in Canada with skills and experience into permanent residents.

For instance, the Federal High Skilled stream (which includes CEC) will invite:

  • 109,000 candidates in 2026

  • 111,000 in 2027 and 2028

This provides more stability for international students already studying or working in Canada and hoping to transition to PR.


🏙️ Provincial Nominee Programs (PNPs) Get a Major Boost

A major highlight of the new plan is the 66% increase in PNP admissions in 2026 compared to 2025.

PNPs are one of the most accessible pathways for international graduates to become permanent residents. Many provinces have dedicated streams for international student graduates, and with higher allocations in 2026, provinces like Ontario, British Columbia, and Alberta will likely reopen or expand their graduate nomination programs.

This expansion could give thousands of students another opportunity to settle in Canada permanently.


📊 International Students Still a Key Part of Temporary Admissions

Even with reduced targets, international students remain a vital part of Canada’s immigration system.

Category 2026 2027 2028
Workers (TFWP & IMP) 230,000 220,000 220,000
Students 155,000 150,000 150,000
Total 385,000 370,000 370,000

In 2026, international students will still make up about 40% of all temporary resident admissions, showing that Canada continues to value global talent and student contributions.


🎓 New Study Permit Exemption for Master’s and PhD Students

In a positive development, starting January 1, 2026, international students applying for Master’s and PhD programs at public universities will no longer need a Provincial Attestation Letter (PAL).

This change will simplify and speed up the study permit process for thousands of highly skilled graduate students.

Additionally, doctoral students and their family members will now enjoy expedited processing, with study permits and related documents being issued in as little as two weeks.

This shows Canada’s continued commitment to attracting top global talent in research and innovation.


📈 Slashed Targets Reflect Current Trends

While the cuts may sound dramatic, they actually align with recent trends. In 2025, from January to August, only 89,430 study permits were issued — around 30% of the annual target. The new numbers are a realistic adjustment to current application volumes.