Canada to cut immigration for first time in years amid rising political pressure, housing woes

Canada is set to significantly reduce its immigration numbers for the first time in years, marking a major shift in policy as the Justin Trudeau government faces increasing political pressure.

Starting in 2025, the country will accept 395,000 new permanent residents, decreasing to 380,000 in 2026, and further to 365,000 in 2027. This is a sharp drop from the 485,000 expected in 2024, according to a report by Reuters.

The reports of these new immigration targets come at a time of heightened diplomatic tensions between Canada and India. Relations between the two countries have soured following the killing of Hardeep Singh Nijjar, a Sikh separatist leader in British Columbia and designated terrorist by India, which led to the expulsion of diplomats from both sides.

India is the largest source of foreign-born residents in Canada, according to the most recent census.

Canada's immigration policy has been under increasing scrutiny as the country faces a housing affordability crisis. The rising cost of homes, exacerbated by higher interest rates and a growing population, has sparked concerns about the sustainability of the current immigration system.

Many Canadians feel priced out of the housing market, with polls showing that a growing number believe the country is accepting too many immigrants. This issue has become a central topic in Canadian politics ahead of the next federal election, expected no later than October 2025.

Migrant advocates have criticized the government's decision, arguing it will leave many immigrants in precarious situations.

This shift comes after a period when Canada loosened immigration rules during the Covid-19 pandemic to fill labor shortages. The government had initially planned to welcome 500,000 new permanent residents annually in 2025 and 2026.

However, with over 2.8 million temporary residents in the country as of mid-2024, the government has started to tighten its immigration policies. Immigration minister Marc Miller has said that Canadians want a system that is better regulated and not "out of control."

The government has also pledged to reduce the share of temporary residents in the population and introduced caps on international students and foreign workers. These changes are intended to address concerns about wage suppression and the exploitation of temporary workers in Canada's labor market.